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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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By Reclaimer77 on 4/16/2012 2:33:08 PM , Rating: 2
I'm sure if we did a massive survey, we would find that most people don't look back on a former employer fondly regardless. Your observations about Best Buy seem consistent with almost every other retail business. Especially #1. EVERY business looks to up-sell on big margin products. When I did food service I learned real quick why managers always have the waitstaff push appetizers. You wouldn't believe the margin on those things!

quote:
3. Part of it has to do with it being a non-commission environment; there is no desire to work harder for every potential sale beyond recognition and job security.


This seems a bit flawed. That model just wouldn't work in Best Buy because most transactions are made without any sales help at all. People walk in, grab what they want, and walk out. If you need one sales person on commission dedicated to every potential sale, your staff requirements would be massive. Which would REALLY hurt profits.

quote:
2. They try to get away with a hybrid model of having almost no dedicated cashiers but training every employee to take debit/credit transactions. This allows them to pull idle sales people from the floor when the cashiers are busy, but not have to spend labour on idle cashiers. Good in theory, bad in practice when no sales people come up to the front to help out.


I tend to agree here. But in the context of Best Buy, which largely employs a younger less-reliable class of employee as do most retail chains, this model makes sense. That way when someone gets "sick", you aren't screwed because they were the dedicated trained cashier or whatever that day. You can rotate whoever in their place. There are pros and cons to both methods.

I'm not sure how these issues could possibly explain Best Buy losing half it's value in two years.


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