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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: worst buy
By Brandon Hill (blog) on 4/16/2012 10:40:56 AM , Rating: 2
http://online.wsj.com/article/SB109986994931767086...

Synopsis from Blue Hornet if the paywall is blocking full access to the WSJ article:

quote:
Back in 2005, an article in The Wall Street Journal outlined an initiative of Best Buy’s then-CEO, Brad Anderson, to categorize and separate customers into two groups: angels and devils. “Angels” are Best Buy customers who, “boost profits at the consumer-electronics giant by snapping up HDTVs, portable electronics, and newly released DVDs without waiting for markdowns or rebates.” These are the type of customers who, if they are part of your email subscriber list, could be identified as highly profitable when you conduct an RFM query in BlueHornet.

But listen to Best Buy’s definition of a “devil” customer: “They buy products, apply for rebates, return the purchases, then buy them back at returned-goods discounts. They load up on ‘loss leaders,’ severely discounted merchandise designed to boost store traffic, then flip the goods at a profit on eBay. They slap down rock-bottom price quotes from Web sites and demand that Best Buy make good on its lowest-price pledge.” Hmm….Depending on the parameters of your RFM query, these devils could be identified as profitable customers, right along with your angels.


RE: worst buy
By Solandri on 4/16/2012 2:54:25 PM , Rating: 2
I thought I made a post along those lines late last night, but I guess I forgot to hit submit after previewing. To sum it up, I think Best Buy's management made the mistake of thinking these "Angels" were good and "Devils" were bad, and worked on eliminating the Devils while encouraging the Angels. That's why you see things like odd store layouts designed to force you to walk by lots of sections you're not interested in - to encourage Angels to make an impulse buy.

The problem is, as the last sentence you quote says, if the Devil is still a profitable customer, you still want them coming to the store. The store layout may increase profits from Angels. But if it annoys Devils enough so they stop shopping at Best Buy, the decreased profit from losing the Devils could outweigh the increased profit from the Angels.


RE: worst buy
By christojojo on 4/16/2012 3:56:42 PM , Rating: 2
The ;ay out is annoying. When I enter the store I feel like I just walked into my kids messy room. It doesn't feel comfortable and the assault is terrible on the senses.

I was just in there t buy a replacement Nostromo after mine wore out (5 years not bad. I was assaulted by Car radio sales, a PC sales that told my girlfriend she was stupid for being an Apple Fan (not fanatic) (I own a few Windows OS PCs).

I was assaulted by the cashier that insisted to tell me my Nostromo would break before the year was over and I would regret not buying the replacement warranty. I told him to stop so he tried to force feed me several other services and items, then tried to get back on the warranty again. If I didn't want that Nostromo right away I would have told him how to restock it.

A few other little notes of irritation.
Sata 18 inch cable best buy at store $19.99
2 of the same cables at Newegg.com including shipping $5.00 a few weeks back.

Nostromo also had a $10 premium for the satisfaction of buying it at Bestbuy. MY biggest regret was dealing with the sales people.


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