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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 nafhan on 4/16/2012 9:36:02 AM , Rating: 2
I think 2 is a no-go, especially if they want to compete on price with online stores. Most online stores don't have any sort of physical presence, and they need to take advantage of that. Also, a physical store, even the size of Best Buy, will still be forced to have a limited media selection.

Basically, they need to stop competing with Circuit City and start competing with Amazon. Let people try stuff out in the store and have it sent straight to their house. Turn BB into a tech showroom that people want to visit, and I think the money will follow.


RE: Three things they need to do
By LSUJester on 4/16/2012 12:32:10 PM , Rating: 2
Only if the prices are good. Why would I buy it to be shipped from there when I can buy it to be shipped from Amazon for much less?


RE: Three things they need to do
By dgingerich on 4/16/2012 4:39:55 PM , Rating: 2
Target does just fine with their movies and music. Granted, it's not a major part of their business, and it shouldn't by for Best Buy, but there are still some people, like me, who do periodically like to walk through a music department and see what's new. Browsing is just not the same online. You can't hardly get the "hmmm... this is interesting," factor online.

As for matching price with Amazon, that would be preferred, but there are certain things that limit that, like staff, building, and power costs. I don't think a physical store will ever be able to completely match prices with an online seller. It has to offer some sort of value add to make up for the price difference.


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