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  (Source: BMWJNKY/photographyreview.com)
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: Three things they need to do
By DiscoWade on 4/15/2012 7:47:10 PM , Rating: 2
My local Best Buy is one that is closing. A 20 minute drive south, a Best Buy is not closing. The Best Buy closest to me, the one that is closing, was a pretty busy one and I always had to wait in line to check out. The one 20 minutes south usually has more people working there than shopping there even in the evening. Figure that one out.

My local Best Buy was actually a very good one. You would be asked once or sometimes not all about extended warrantes. I bought a laptop there last year. The only ones they had left were "pre-optimized" and I made it clear I was going to pay the advertised price. The manager reduced the price without question. I really and honestly think my local Best Buy is shutting down because they didn't sell enough high-profit extras, and the reason they didn't sell these scams is because the manager treated customers like customers. And because the store treated its customers well, I didn't mind paying a little more for some items.

The management of Best Buy think they need to sell more high-profit stuff regardless. They still don't realize the reason why Amazon.com, Newegg, and others are beating them is good customer service, not prices. Stores cannot compete with online prices because of overhead. What they can do is treat customers right so that people want to come back. I rather pay a little more for good customer service.


RE: Three things they need to do
By Oakley516 on 4/15/2012 10:56:05 PM , Rating: 2
It's not always the obvious issues that may cause a chain to close one store but not another. There may be issues involving the overhead costs of a location that make it more expensive. Or maybe leasing issues or the value of real estate.


RE: Three things they need to do
By Brandon Hill (blog) on 4/15/2012 11:10:44 PM , Rating: 2
In the case of the Rocky Mount, NC store closing, the town is a s**thole. Rising crime, stores are leaving at a rapid pace, and it's the crossroads of drug traffic along I-95.

Home Depot, Sears, and Old Navy recently got the hell out of that town. You know it's bad when you can't even sustain an Old Navy.


RE: Three things they need to do
By DiscoWade on 4/16/2012 7:45:04 AM , Rating: 2
Sears closing is because Sears has pure incompetent management thanks to K-Mart buying them.

Old Navy is closing because you can't buy clothes there that last 2 months. I once bought a T-shirt there that didn't last the summer. Never went back. Besides, why would I pay you money to advertise for you?

Home Depot isn't doing so well either. Have you been to a Home Depot in Raleigh? Even those stores aren't doing well. Of course, every time I went the prices were higher than Lowe's. Of course Home Depot is a Georgia store and Lowe's is a North Carolina one, so that has something to do with it.

Except for Old Navy, the problem is not the town but the management of the company. Granted, Rocky Mount has been in trouble since Hardee's was bought, and Centura bank was bought by RBC and then RBC sold to PNC taking even more money out. The money left in this town is tied up in the hands of a few, there are some very rich people in Rocky Mount. But you point is valid, it is a dying town being run into the ground by some incompetent city leader who only get re-elected because they pander to their voting base.

Be that as it may, I still stand by my argument: The store is closing because they didn't sell enough extended warranties. Just read old articles at consumerist.com and sell what Best Buy's focus really is. It isn't good customer service. The Rocky Mount Best Buy was one of the few good ones because everyone there treated me like a customer and not a mark.


By christojojo on 4/16/2012 3:58:57 PM , Rating: 2
Office Depot is struggling too for the same cross trained worse service mentality that is going around.

P.S. Stores dont lie to me. Don't make up information because you don't know just tell me you don't know better yet find a co-worker who does and get the right answer.


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