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Changes will come in next 3 to 5 years

The world of retail electronics has changed drastically over the years. It used to be that most people were going to retail stores to make a purchase. Today, many people go into a retail store to see how a device works and research an item, then go home to purchase it online. The reasons for this are many, but much lies with the lower price that many gadgets can be found for online.

The largest consumer electronics retailer left in the U.S. is Best Buy. Best Buy is still facing stiff competition on the market with Wal-Mart, Target and other discount chains selling more electronics than they did in years past. Best Buy currently operates a number of large stores that its calls “big boxes”. These stores range anywhere from 20,000 square feet to 58,000 square feet.

According to Best Buy, these stores have huge overhead and are "white elephants" in the industry. The retail chain is looking to cut the amount of space and overhead these stores have by about 10% over the next several years. This comes after three straight quarters of same-store sales decline and a forecast for more declines in sales. The blame is placed on the Best Buy’s ailing TV business.

Analyst Scot Ciccarelli said, "I do believe that a lot of their bigger box stores have to be downsized. If there was a disappointment, I was kind of hoping they would be even a little bit more aggressive than what they outlined." He continued saying, "It's [the size reduction] not that big for this company. What I think you really need to do is maybe downsize a little bit quicker."

Analyst David Strasser from Janney echoed Ciccarelli saying, "We believe the Street wants more. We look at this as a first step that shows us the company is looking at reductions."

While Best Buy is seeing same-store sales decline, it is trying to grow it online business significantly. Best Buy wants to double its online sales from the current $2 billion over the next three to five years. Best Buy CEO Brian Dunn said, "The online channel is our greatest growth opportunity."

Dunn did note that retail was a part of Best Buy and defended its retail brick and mortar presence. He said that stores augment online. While Best Buy is looking to shrink its big box stores, it plans to increase the number of small stand-alone stores like Best Buy Mobile offerings to between 600 and 800 within the next five years.

Best Buy also has plans to grow operations in China and is pressuring U.S. lawmakers to force the collection of sales tax to help "level the market".



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First area of the store that needs to go...
By jtvang125 on 4/15/2011 11:54:11 AM , Rating: 5
is the audio/video accessories. $50 for a HDMI cable?




RE: First area of the store that needs to go...
By corduroygt on 4/15/2011 12:09:39 PM , Rating: 2
Why would you want to close the department with the highest profit margin?


RE: First area of the store that needs to go...
By lolmuly on 4/15/2011 12:20:08 PM , Rating: 3
their profit margins are crazy.... they might get my business more often if they didn't mark everything up 200%-300%....

Something that costs $3-$4 at a fry's electronics is usually $20-$25 at Best Buy. Why? It's price gouging and they know it.


RE: First area of the store that needs to go...
By vazili on 4/15/11, Rating: 0
By Taft12 on 4/15/2011 1:00:51 PM , Rating: 5
I'm going to save any editorializing for others, but if nothing else, I applaud your cojones for defending Monster Cable in this forum! That alone is worth a few votes!


RE: First area of the store that needs to go...
By Motoman on 4/15/2011 1:12:46 PM , Rating: 2
I hope you at least work for Monster Cable - because trying to promote your own bottom-sucking employer is the only possible excuse for saying something that mind-bogglingly stupid.


RE: First area of the store that needs to go...
By vazili on 4/15/11, Rating: 0
By Skywalker123 on 4/16/2011 1:35:33 AM , Rating: 3
then your opinion is stupid


By Adonlude on 4/19/2011 4:15:29 PM , Rating: 2
Solution to your supposed problem: Dont bend your cables. Although I don't know why bending cables would do anything unless you are talking puting creases in optical cables, which should be obvious.


RE: First area of the store that needs to go...
By lolmuly on 4/15/2011 1:22:28 PM , Rating: 2
http://gizmodo.com/#!268788/the-truth-about-monste...

from the little I've read, it seems the higher cost cables only make a difference at length's over 50 feet...


RE: First area of the store that needs to go...
By sleepeeg3 on 4/16/2011 3:07:21 PM , Rating: 2
Looks like over 6', if we are reading the same article... They jumped from 6' to 35' with nothing in between and 1080p was failing at 35' on the Monoprice cable.

HDMI is also a digital signal, which can tolerate more loss than an analog. Digital either works or it doesn't. Analog cables (TRS, RCA) that typically carry sound lose signal at any distance traveled, due to electromagnetic interference. The more shielding and the higher quality your cables, the less signal degradation you will have and the higher quality your sound will be. It pays to have good cables.

Now whether Monster actually makes a better cable with better shielding than Monoprice is open for debate.


RE: First area of the store that needs to go...
By Ammohunt on 4/18/2011 2:24:08 PM , Rating: 2
Nothing a couple $.35 snap on Ferrite Cores can't fix.


By EricMartello on 4/19/2011 1:44:57 PM , Rating: 1
Ferrite cores won't "fix" anything if the cable itself is compromised. The main thing ferrite does is suppress interference generated by the device connected to the cable. That's why you see often them on the power cables of electronics.


RE: First area of the store that needs to go...
By Ammohunt on 4/19/2011 2:52:50 PM , Rating: 2
what do you think shielding does? no manufacturer is going to produce an HDMI cable without some type of RF shielding. If its not the best it can be augmented with a ferrite core.


By EricMartello on 4/19/2011 6:26:52 PM , Rating: 1
Ferrite cores and the shielding of the cable are two different things, bro. Ferrite cores are intended to keep things IN. The shielding keeps things OUT. You will not "Fix" a cable with degraded shielding by slapping on a ferrite core.

Cheap cables have low quality materials which will degrade in a shorter time. It's a simple fact and there is no uncertainty there. I'm not saying that paying $200 for a Monster cable is smart, but I am saying that all these morons suggesting that the cheapo $4 are good enough should STFU. As you have demonstrated, neither you nor they know what they're talking about.

A decent cable, regardless of its type, will be about $30-$50 for 6 feet. Quality is indicated by the grade of materials used for insulation and shielding, the overall build quality (i.e. solder joints) and most importantly the pins/connectors - which should provide a firm connection.


RE: First area of the store that needs to go...
By Flunk on 4/15/2011 1:58:31 PM , Rating: 1
My experience with Monster cables is quite the opposite. The Monster cable is about $250 and the standard one is $4.99 (although I got it on sale for $2.99). Both produced HDMI picture and sound that were indistinguishable.

Luckily my idiot friend had the receipt and we returned the Monster cable to the store for a full refund.

Monster cables might be a bit nicer than the standard ones but it doesn't justify (in my exact case) 5,000% markup. They can't possibly cost that much more to make, even if they have twice the copper that would only double the cost.


RE: First area of the store that needs to go...
By mcnabney on 4/15/2011 4:52:02 PM , Rating: 2
I just want the B&M stores to carry current products for at least reasonable prices.

I went in to a BB a month ago to buy GTX560ti video card. They didn't have them, nor did BB.com. They could sell me a GTX460 for the MSRP of the 560ti. I checked out their other video cards, many of them 2+ years old and they still had the original MSRP. They still had HD4XXX cards for over $100. But nothing new and nothing even close to a typical sale price.

I had a gift card to spend so I used it to buy a nice Logitech mouse/KB that are almost always sold everywhere for MSRP. At least I wasn't being ripped off. I guess BB is just for suckers. The modern equivalent of women getting ripped off by an auto mechanic.


RE: First area of the store that needs to go...
By taisingera on 4/15/2011 9:10:23 PM , Rating: 2
I would get rid of the CDs and DVDs section since few buy physical media anyway. I would like to see them cut the audio video accessories, but I guess as others have stated that it is too much of a cash cow for them. They can keep the computer section, like laptops, but get rid of all the upgrades (video cards, hard drives, keyboards, mice, speakers) because average joe isn't buying these, and tech guys buy them online. Does BB really need to sell appliances? So many other stores sell them, like Sears, Walmart, Home Depot, Lowes, & Target.


RE: First area of the store that needs to go...
By cmdrdredd on 4/17/2011 9:18:15 PM , Rating: 3
You gotta keep the Movies because while you can download and own a CD quality MP3 you CANNOT download and own a full DVD. No not just the movie. i want the extra content, dev commentary. Then Blu-Ray...you telling me I can download a full 50GB 3D Blu-Ray with lossless audio online and make it playback on my Home Theater? Yeah...it won't happen soon. Not if comcast and others keep up with their bandwidth limits on their unlimited plans.


By tng on 4/19/2011 11:27:25 AM , Rating: 2
quote:
a CD quality MP3
Huh?

Have the MP3 format changed in the past several years? I can't get a MP3 that uses anything over 320Kbs. Last I heard a standard CD is using about 705Kbs. Which makes a MP3 far from CD quality. I know that you probably can't hear a difference, but if all you do is listen to a IPod with in-ear speakers you wont hear it.


By Ammohunt on 4/18/2011 2:30:48 PM , Rating: 2
I bought a dishwaser from BB no one lese had what i wanted at the price they were offering.


RE: First area of the store that needs to go...
By cknobman on 4/15/2011 3:44:46 PM , Rating: 1
Monster cable may have had some negligible difference back when everything was analog (component, composite) but now that most cable carry a digital signal Monster cable dont do squat except provide you with a pretty shroud and a super high price.

The shroud and extra insulation may (and I say may very lightly) have a super small impact when the cable lengths become extreme.

Other than that Monster cables are for suckers that walk in and are stupid enough to listen to the pre fed Best Buy salesman garbage.

I know because I worked for Best Buy in college. Best Buy was a crooked scheming company that swindled customers and brainwashed employees.


RE: First area of the store that needs to go...
By Xaussie on 4/15/2011 5:35:29 PM , Rating: 2
You can hide a lot in the smoke and mirrors of analog signalling but Best Buy employees assured me I would need an extra high bandwidth HDMI cable to support a 240Hz TV. When I tried to explain that the 240Hz TV was simply taking the same 60fps signal that every other TV takes and interpolating and displaying intermediate frames internally, I got a blank look followed by an assertion that he had his information direct from the Monster sales rep so it must be true. It annoys me that a lot of people out there don't have computer design backgrounds and will fall for this, it's simply dishonest.


By Reclaimer77 on 4/15/2011 5:36:33 PM , Rating: 1
OMG are you serious? He told you that?

Sigh...that's criminal lol.


By mead drinker on 4/15/2011 11:07:48 PM , Rating: 2
Why would you care about the 240Hz feature on your TV anyway?


By Skywalker123 on 4/16/2011 1:33:54 AM , Rating: 1
Monsters 800 dollar cable is ten times better


RE: First area of the store that needs to go...
By Hiawa23 on 4/17/11, Rating: 0
By ShaolinSoccer on 4/17/2011 6:40:27 AM , Rating: 2
lol Best Buy will either hook you up or rip you off. I decided to buy a couple 10" Sony car woofers along with the extended warranty. I blew those speakers 4 times during the warranty and BB replaced them each time. No questions asked. I definitely got my money's worth.


By Samus on 4/17/2011 6:55:42 PM , Rating: 2
200%-300%? Try 1000%. They sell those cables for 10 times what they pay for them. Proof being any Bestbuy employee can pickup a $50 monster cable for $7 on company discount, and you can assume Best Buy is STILL making money on that purchase!

I used to work at Circuit City when I was a kid and I had the most ridiculous entertainment system outfitted with Monster banana connectors and the like. $100 cables. I paid 1/10th of that. In the end I probably had over $1000 retail price worth of cables between my apartment and my car, and paid maybe <$200 for all of them. I won't even detail my $36 sprint vision "employee's" phone plan as with todays ridiculous cell plan prices, it's depressing to think it was CHEAPER to have technology 10 years ago than it is now.


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