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Best Buy prepares to close many of its big box stores

Last Wednesday, Brian Dunn stepped down from his position as CEO of Best Buy. Initially, most speculated that Dunn was forced out due to the poor performance of the company under his tenure. Later in the day, however, we learned that Dunn only stepped down after an internal investigation found out that he "misused company assets" while having an improper relationship with a female employee.
 
This latest drama surrounding Best Buy came shortly after the company announced that it was closing 50 stores in an effort to save $800 million dollars. The company has already closed two of the 50 stores, and notified six others that they would be closing.
 
Yesterday, the company revealed the list of the remaining 42 stores that will be closed. Best Buy expects that most of the stores will permanently shut their doors to customers by May 2.
 
The company issued the following statement:
 
This was not an easy decision to make. We chose these stores carefully, and are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way. But we also recognize the impact this news has on the people who deserve respect for the contributions they have made to our business.
 
We will be working to help these employees find other positions inside Best Buy. If they don’t find new positions, or if they choose not to work at a different location, a transition including severance packages will be available.
 
You can view the full list of stores that will close here.

Sources: Best Buy, Wall Street Journal





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RE: Bad harbinger?
By joex444 on 4/15/2012 6:26:25 PM , Rating: 2
They eliminated Circuit City which should have given them a monopoly on these kinds of stores, and yet here we are...

It's not all because of the Internet and online sales. Those sales are very easy to make for music and movies, particularly streamed or in the form of iTunes, etc. It's hard for BestBuy to try and compete with the drive to store - hope they have what you want in stock - try to pay for it model that they currently have when iTunes offers "don't move, it's playing in 30 seconds." Same deal with iTunes videos, and Amazon, also NetFlix (though they stream crap movies and some decent TV series).

They should do fairly well with the "I don't trust buying expensive things online" crowd, who are looking for PCs, laptops, TVs and surround systems. For them, being able to go to the store and see it is important but also knowing there is a place you can go that will help you with an issue later on. Joke all you want, sending back an HDTV to some online retailer is a pain in your ass you don't want; get a defective one from BB and they swap it out for you, not much to worry about.

What I've found people do is go to BB to look at and touch the things they want that are expensive, but then buy it online from Amazon or Newegg because it's cheaper. BestBuy already got those people in the store, but is having trouble making the sale. Dominating factor there is price, and as a physical retailer they just can't compete with pure online stores. It's simple, they can't win.

Where will people go once BestBuy is gone? Target, Wal-Mart, and Sears all have these things on display and may be able to offer a better price. I wouldn't worry about consumers in a post-BestBuy world.


RE: Bad harbinger?
By ShaolinSoccer on 4/16/2012 2:02:26 AM , Rating: 2
I find it ironic that recently, I bought a camera from Best Buy and it was cheaper there than anywhere else. But usually, I don't mind paying a bit extra for something at a store nearby just in case I need to return it. It sucks having to order something online, it be defective then having to wait on shipping it back and forth. Not to mention having to pay for shipping and handling.


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