Best Buy Founder/Chairman Resigns 1 Year Early
June 8, 2012 6:20 PM
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He is also looking at possible options for his 20.1 percent stake in Best Buy
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.
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RE: How Can BB Compete with Amazon...
6/9/2012 6:28:21 PM
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.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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