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  (Source: laughingsquid.com)

Richard Schulze  (Source: msnbcmedia.msn.com)
He is also looking at possible options for his 20.1 percent stake in Best Buy

Best Buy’s chairman and founder has resigned one year ahead of schedule as the brick-and-mortar electronics store struggles to keep its head above water.
 
Richard Schulze, 71, chairman and founder of Best Buy, resigned from his position yesterday and it is effective immediately. He was originally scheduled to resign in June 2013, but has decided to leave ahead of time.
 
“There is an urgent need for Best Buy to reinvigorate growth by reconnecting with today’s customers and building pathways to the next generation of consumers,” said Schulze. “Accordingly, I have shared my views with the board and today informed them of my decision to resign as Chairman and a director, effective immediately, in order to explore all available options for my ownership stake.”
 
At Best Buy’s annual meeting last month, the new succession plan was laid out for June 2013. It was announced that Schulze would be replaced by Hatim Tyabji as chairman, but the transition wasn’t supposed to take place until June 2013. It is unclear why Schulze resigned early.
 
Schulze’s resignation comes amidst an investigation into Best Buy’s former CEO Brian Dunn, who has been accused of misusing company funds while conducting a relationship with a female subordinate. Dunn resigned from CEO in April.
 
To make matters worse, Best Buy recently posted a $1.7 billion quarterly loss. Also, in late March, Best Buy said it would close 50 of its 1,100 retail stores in order to save $800 million.
 
Schulze will be looking into other options for his 20.1 percent stake in Best Buy.

Source: Yahoo



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How Can BB Compete with Amazon...
By Cypherdude1 on 6/8/2012 11:22:11 PM , Rating: 5
How can BB compete with Amazon, TigerDirect, Newegg, and the many others now on the 'Net? BB's costs will always be higher. BB's problem has already been mentioned before: People go into BB's brick & mortar, look over the TV models they like, then order through the 'Net. BB has become an unpaid showroom for the 'Net.

Fry's is BB's direct competitor. Fry's has great deals on laptops, TV's, etc... If you want to pick up an excellent laptop, you wait for it to go on sale at Fry's and get 30%-50% off.




By spread on 6/9/2012 12:56:33 AM , Rating: 5
Best Buy doesn't even have the products I want. Whenever I walk in I think to myself, "why am I here again?"

Most of the stores are a maze, they don't have products I want to buy and the salespeople aren't there to help me but tell me lies and sell me a service plan because they're uneducated bufoons hired by uneducated bufoons.

Their only redeeming features are non-existent. Best Buy has absolutelly no advantages compared to TigerDirect, Amazon and Newegg. None at all.


By DiscoWade on 6/9/2012 6:28:21 PM , Rating: 4
Any B&M will have a difficult time competing on price with online stores because online stores have less overhead and less problems with theft. Since they can't compete on price, at least they can compete with good customer service. But BB doesn't do that either.

I am still convinced that my local BB closed down because they didn't sell enough extended warranties. I bought a laptop from them, I was only asked once for an extended warranty with no pressure at all. My dad bought a TV there and he was fooled into getting an extended warranty, so I had him cancel it, and they did without any attempt to change his mind. I know someone who bought a laptop at a far less busy BB 20 minutes away, because the local BB had already sold out of the laptop she wanted, and was repeatedly pressured into buying an extended warranty. It soured her on BB completely. A quick search on consumerist.com reveals how much BB pushes extended warranties. BB is run by people who only look at profit margins and not at what it takes to make customers want to shop at your stores.


RE: How Can BB Compete with Amazon...
By abzillah on 6/10/2012 3:09:51 AM , Rating: 2
I disagree with you. Yes, some people do go into BB or Fry's to look at stuff and buy it off the net, but many people also go into the store to buy goods. It's so much better to be able to buy something and if there is a problem with it, have a place to return it to.
Money can be made from brick and mortar stores. Best Buys just needs to find a way to get people to buy from them, either from their store or through their online store.
I blame the current situation of BB on poor management decisions.


RE: How Can BB Compete with Amazon...
By DN23 on 6/10/2012 4:49:18 PM , Rating: 2
@Abzillah, you bring up a good point. Bestbuy is missing a large advantage they have over the Online Companies. I purchased a 55" Sony LCD that developed a blue colored hue in one corner of the screen. I called Bestbuy and explained the situation to them. They dispatched a team of technicians and replaced the screen. They did caution me to buy Samsung next time as their customer service is much more friendly. Had I bought online, I would have been on my own. Capturing that in a commercial would be a great way for BB to market themselves. Especially to non-tech savvy Baby-boomers. I find the Warranty push equally annoying, but that is part-in-parcel of shopping in a 'big-box' store. They could easily turn their fortunes around if they could focus on customer service!


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