Print 36 comment(s) - last by Talon75.. on Jul 11 at 1:21 PM

Best Buy recently announced that it will be cutting 2,400 jobs

It's no secret that Best Buy is sinking under the weight of its competitors. With online retailers like Amazon flourishing with competitive prices, the brick-and-mortar electronics store is having trouble keeping up, and it's starting to show more and more as the company continues cutting jobs.

Best Buy recently announced that it would be cutting 2,400 jobs, which is about 1.4 percent of its total workforce of 167,000. About 600 of these cuts will come from the Geek Squad service while the other 1,800 will come from store staff.

This announcement comes after the company's decision to close 50 of its big-box stores in March of this year. It also cut 400 corporate and support jobs.

"These changes were previously announced as part of the leadership team's ongoing turnaround plan," said Best Buy in a statement.

The company aims to cut costs by $800 million by 2015.

In addition to increased competition with the likes of Amazon, Walmart and Apple, Best Buy has had internal issues with management. Former Best Buy CEO Brian Dunn recently quit after the board investigated his personal relationship with a female employee. Also, Best Buy chairman and founder Richard Schulze resigned from his position in June, which was one year earlier than expected.

Source: Market Watch

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By lightfoot on 7/9/2012 4:39:54 PM , Rating: 2
It is almost a joke to think that a company that has helpful, knowledgeable staff at a local physical location where you can try out and buy products for a reasonable price could possibly be at a disadvantage with a company that does not.

To fix the problem all Best Buy needs to do is the following:
1. Have knowledgeable staff.
2. Have helpful staff.
3. Price products competitively.

If Best Buy had even two of these three requirements, Amazon would not be able to compete. Sadly they don't, and that is why I don't shop there anymore.

RE: Disadvantage?
By GuinnessKMF on 7/9/2012 5:10:18 PM , Rating: 2
No, the only thing that matters is cost. If I can get the same product at a reduced price, and not have to get out of my seat, why would I?

If I really need to test the product out, I can go to Best Buy, test it, and then get it cheaper (even after shipping) on amazon (from my phone while in the store at Best Buy).

I have zero sympathy for a company that does not stock HDMI cables under $40 (There is zero excuse for me not being able to walk into a BB and get a 10' HDMI cable for under $20 ... Firefold sells them for $5)

RE: Disadvantage?
By StevoLincolnite on 7/9/2012 5:22:43 PM , Rating: 2
Most developed nations are moving from your brick and mortar stores to a fully digital economy, which has been showing for several years now in how much money people spend online.
It's more convenient and cheaper with a larger selection and more competition to keep prices as low as they can be.

Stores like Best buy may close down, but you will have 10 online stores pop-up to take it's place, you will probably still always have your family run business if you like to look at things in person and for more personal customer service though.

RE: Disadvantage?
By DiscoWade on 7/9/2012 7:13:02 PM , Rating: 2
Not everybody values low prices above everything else. Many people value good customer service. For certain items, I would be willing to pay slightly more for better customer service. Sadly for Best Buy, they offer neither better customer service nor better prices. Asking me 25 times if I want an extended warranty is not good customer service. Not knowing your product is not good customer service. Making me pay extra for an "optional" fee is not good customer service. The only motivation to shop there is if I need something now. Best Buy is run by people who only look at the bottom line and not by people who know how to run a business. They look at profits but don't look at what it takes to get customers into and returning to the stores.

RE: Disadvantage?
By christojojo on 7/9/2012 9:25:42 PM , Rating: 2
Best Buy (at least near me) has been about over priced items, Lying staff that makes up information (oh that Pentium 4 is 4 times as powerful as that X2 (I kid you not). They over sell their over priced under qualified post service things too. $80 to install and Xbox 360? Really?

Sigh they lost me a long time ago and I only go when I need a Birthday gift or emergency repair part.

RE: Disadvantage?
By sigmatau on 7/9/2012 7:26:26 PM , Rating: 2
It was so funny when I asked a Best Buy employee, after he had walked past me twice without asking if I needed anything, if they sold crossover cables and he replied asking me "what does that look like?"

Kodak moments I tell you.

RE: Disadvantage?
By Kurz on 7/10/2012 10:15:24 AM , Rating: 2
Sorry I didn't know what Crossover cables were either.

Say Cat5 or Cat6, Ethernet Cable, I would Know what you were talking about.

RE: Disadvantage?
By johnsmith9875 on 7/11/2012 9:55:22 AM , Rating: 2
Quit asking the CUTE Best Buy girls about crossover cables. The average looking one will know what you're talking about.

Its just like real life, pretty girls don't have to know much.

RE: Disadvantage?
By michael2k on 7/9/2012 8:06:41 PM , Rating: 2
Heck, Apple has shown you can succeed with:
1) Have knowledgeable staff
2) Have helpful staff
3) Price products 10% to 30% higher

In other words, #1 and #2 are worth 10% to 30% of the actual product price. Of course it also helps that Apple's prices between it's stores and Amazon are nearly identical, too.

RE: Disadvantage?
By aliasfox on 7/10/2012 11:12:24 AM , Rating: 2
There are four shops that come to mind with your comment:

- Apple staff is at least reasonably knowledgeable about their own stuff, are helpful, and are the same price as online (+ tax, which is a fairly small price to pay)

- Microcenter and Frys are cheap enough - good if I need to pop in for a cable/router/flash drive etc that I don't want to wait to get shipped. The staff is reasonably helpful, but I don't know how knowledgeable they are on the whole.

- B&H Photo Video in NYC has online level pricing, and when you go into the store, among the most knowledgeable sales staff I've ever encountered - sure, it's sometimes dumbed down so that people are willing to listen, but they'll generally point you in the right direction. It doesn't hurt that they have a huge selection of equipment - and very little in the way of media (DVDs/Bluray/CDs).

If Best Buy could manage to be like Microcenter or Frys for their 'general' store and be like B&H or Apple for their Magnolia stores, I'd be more likely to use their stores as more than just glorified showrooms with blue-shirted stockboys.

"And boy have we patented it!" -- Steve Jobs, Macworld 2007

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