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Print 88 comment(s) - last by namechamps.. on Apr 26 at 9:20 PM

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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Wow.
By rudolphna on 4/15/2011 1:11:54 PM , Rating: -1
I'm simply amazed. I work at a Best Buy in New York State, and what I'm reading here shocks me. That anyone would wish for tens of thousands of people to become unemployed because the one associate you talked to was a jerk (yes, they exist), and because we have to keep prices higher to maintain something magical called a PROFIT, then you deserve to be dunked in a bucket of ice water.

Seriously, yes there are bad stores. Our sister store near here is one of them. By and large, most of our stores have polite, knowledgeable salespeople. If they are all jerks, then maybe there is another problem. YOU. If you come in, are being arrogant, an asshole, and being generally disagreeable, then yes, we might not be too pleased with you. Oh and by the way, most of us, and our Geek Squad guys, know what they are talking about.

In store, we don't control pricing anyway. It's set by people who make more in one hour than everyone in the store does in a week. So don't be mad at us for doing OUR JOB. An honestly, as much as you might dislike us, there are milions out there that love us, because we help them get a computer, tv, whatever, when they know NOTHING about them at all. If we weren't there to help them figure out what they need, they would be screwed. Now, take you're superior attitudes and shove them.




RE: Wow.
By rudolphna on 4/15/11, Rating: -1
RE: Wow.
By rudolphna on 4/15/2011 1:15:29 PM , Rating: 1
P.P.S. Don't be mad at the poor salesperson He/She is making around $9.00/ hour, with no commission. We are just doing what we have to do to survive.


RE: Wow.
By enlil242 on 4/15/11, Rating: -1
RE: Wow.
By Jalek on 4/15/2011 2:52:18 PM , Rating: 2
Sure, and they work less than full time, so they don't make all of that $18k annually. They make no commissions there, I assume they get spiffs though.

Anyone relying on retail for a living usually needs two or three jobs if it's just wages.


RE: Wow.
By dubldwn on 4/15/2011 2:52:53 PM , Rating: 1
haha what? you think floor salespeople making $9/hour + no commission are overpaid? What do you think they should be paid? I expect them to be reasonably intelligent people that can have an edifying conversation with about consumer electronics. Based on my local Best Buys, I think they should be paid more but have half as many people.


RE: Wow.
By spread on 4/15/11, Rating: 0
RE: Wow.
By enlil242 on 4/15/11, Rating: 0
RE: Wow.
By vazili on 4/15/11, Rating: 0
RE: Wow.
By cjohnson2136 on 4/15/2011 1:30:24 PM , Rating: 2
quote:
And for Geek Squad? All of them in my store are Computer Science Majors or work for the University in networking.


This is true of the Best Buy near my school 90% of the technicians are college students the other 10% are morons though. But that is just one store. I have always been happy with the service when I go there. Some departments are better then others. But again that's one store. When I was working as an intern I was actually looking at getting a job for Geek Squad cause I needed more money luckily I got a programming job with Bally Total Fitness


RE: Wow.
By Black1969ta on 4/15/2011 2:37:26 PM , Rating: 2
Sure the Margins on TV's are low, that is because consumers will shop around for a TV, but then they purchase the accessories where ever the TV sale was.

I am sure that when I can find an identical HDMI cable online for $5 but BestBuy charges $30. Heck, i found a clearance 6ft HDMI 1.3a cable a Walmart for $10, that was normally priced at $50, since they don't take a loss on clearance items, that pretty much tells me what their mark-up is.


RE: Wow.
By Jalek on 4/15/2011 2:56:33 PM , Rating: 2
Those cables have been an annoyance for customers for years, you'd think they would have stopped by now. Before HDMI, it was the parallel cable for your new inkjet printer that was $40, bi-directional you know.

When the gouging's that apparent, even a dullard will wonder where else they're getting screwed in the deal and probably shop around more next time.


RE: Wow.
By MrTeal on 4/15/2011 2:42:28 PM , Rating: 2
I know a lot of CS majors that wouldn't know how to install a HDD unless a TA held their hand while they turned the screwdriver. Not to say yours aren't capable, but being enrolled in a program really doesn't mean a whole lot.


RE: Wow.
By cjohnson2136 on 4/15/2011 5:23:58 PM , Rating: 2
I think his point is that just cause you had one moron Geek Squad person you can't discredit all of them. It is just like any other job you have some really bad ones, some really good ones, and a lot of mediocre ones. Just like any field.


RE: Wow.
By ihateu3 on 4/15/2011 9:51:43 PM , Rating: 2
Why would we feel bad if Best Buy went under? Sure I would feel bad about the unemployed, but I am not going to help a company that in the past has redirected its own customers to a different best buy website that has higher prices!

Basically the customer would check a price at home on best buys website, then go to the store and find a higher price, which best buy conveniently offers the customer use of their wifi. To the customers suprise, this redirected best buy website has marked up prices from what they viewed at home.

I will not support this kind of fraud!


RE: Wow.
By cmdrdredd on 4/17/2011 9:26:00 PM , Rating: 2
quote:
I'd love to see any one of you mount a 55" plasma TV or LED TV while hiding all of the wires, programming the remote, and teaching other people how to do it in 90 minutes. That's all our installers get 90 minutes. And for Geek Squad? All of them in my store are Computer Science Majors or work for the University in networking.


I mounted my own TVs, multiple. Did all wiring through the walls/attic, hid everything, programmed my harmony remote in 5 minutes, calibrated the set, hooked up my home theater systems, calibrated the receiver for the room and speaker distances and set proper levels etc. Renamed the inputs, and programmed my OVA channels. Took less than an hour each time from start to finish once I had everything planned out. Total cost? ZERO out of pocket labor, $15 for a case of beer.

Your geek squad is a joke. You think because someone is a major in some university they know anything? That's a laugh...nobody who is straight out of school knows much about real world networking and computer technology. They're usually like "um...that's not in my book and we never studied that so I cannot help you." Pitiful...


RE: Wow.
By StraightCashHomey on 4/15/2011 1:49:04 PM , Rating: 3
I feel for anyone that loses their job, but it IS the nature of the beast. Survival of the fittest. You put your trust into your corporate executives that they'll make good decisions and keep the company going strong, so that you and all of your colleagues will have a job.

Unfortunately, one man's loss is another man's gain. If people are no longer shopping at retail stores, then they have to be shopping somewhere. Money is exchanging, but it's not at a Best Buy retail store. The job security will then be handed off to the jobs that assist in online purchasing, either through Best Buy, Amazon, etc, and the job security at the retail stores is destined to go away.


RE: Wow.
By Reclaimer77 on 4/15/2011 5:29:44 PM , Rating: 2
Would you rather see them go the way of Comp USA and Circuit City and close their doors forever and have hundreds of thousands of unemployed people?

That's what they are trying to prevent here, and it's a very good move imo.


RE: Wow.
By Xaussie on 4/15/2011 5:45:19 PM , Rating: 2
Sadly they will go the way of CompUSA and CC. The internet and online sales have made them obsolete. Places like Amazon provide more detailed information, user reviews, better prices and more up to date inventory. Times have changed and unfortunately this will force people out of one industry at the same time hopefully creating new industries.

The ones who survive are the people who adapt the best. I was once an expert Z-80 assembly programmer. Guess how many jobs there are for that these days. So I learned Forth, then Pascal, then Ada, then C. No jobs for any of those either these days, but I make a decent living writing C++.


RE: Wow.
By Reclaimer77 on 4/15/2011 7:14:55 PM , Rating: 1
Umm no, I'm NOT buying a 50 inch TV off the internet and paying all that shipping. There will always been a need for big box stores.

quote:
The ones who survive are the people who adapt the best. I was once an expert Z-80 assembly programmer. Guess how many jobs there are for that these days. So I learned Forth, then Pascal, then Ada, then C. No jobs for any of those either these days, but I make a decent living writing C++.


Oh man, that's rough. But I'm glad you bounced back.


RE: Wow.
By Skywalker123 on 4/16/2011 1:46:00 AM , Rating: 2
Often taxes will cost more than shipping.


RE: Wow.
By ShaolinSoccer on 4/17/2011 7:08:48 AM , Rating: 2
Are you the same guy who talks crap about Eve Online in Youtube?


RE: Wow.
By cmdrdredd on 4/17/2011 9:28:27 PM , Rating: 2
quote:
Sadly they will go the way of CompUSA and CC. The internet and online sales have made them obsolete. Places like Amazon provide more detailed information, user reviews, better prices and more up to date inventory. Times have changed and unfortunately this will force people out of one industry at the same time hopefully creating new industries.


Problem #1

Your brand new monitor or TV has dead pixels or a broken screen. You have to ship it back. At BB you can bring it back 5min down the road to the store and exchange it on the spot. Shipping = time and time = money

One thing I will never ever buy online is a LCD set.


RE: Wow.
By namechamps on 4/26/2011 9:20:32 PM , Rating: 2
Higher prices vs the chance you need to return a set.

Amazon prices for HDTV are often $200 to $800 less than BestBuy. Return shipping is free on defective products.

So one way to look at it is by buying in the store you are paying a $200 to $800 premium for the 1% to 5% chance you need to return the set. In essence no different than a ripoff extended warranty. That "free" easy exchange is costing you couple hundred bucks.

I have bought 3 HDTVs, all online, all delivered in a few days, had no problem with any of them.

Amazon, newegg, monoprice combined are the bestbuy killer.


"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay

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