Best Buy Names New CEO
August 20, 2012 9:14 AM
comment(s) - last by
Hubert Joly will start in September
Best Buy has announced the hiring of a new CEO to replace former CEO Brian Dunn. Dunn
resigned from his position as CEO in April of this year
, after concerns were raised about and "inappropriate relationship" he had with a 29-year-old employee. Dunn was then replaced by interim CEO G. Mike Mikan.
Best Buy has named Frenchman Hubert Joly as its new CEO. Joly previously served as the chief executive of hospitality company Carlson. Joly will start with Best Buy in September after obtaining a visa to work in the United States. The new CEO has experience in corporate turnarounds from days as an executive with Vivendi and Electronic Data Systems.
“Hubert was an outstanding candidate for this position and I am confident he will be a great fit for Best Buy,” Hatim Tyabji, Best Buy’s chairman, said in a statement. “Hubert’s range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies.”
Interim CEO Mikan will continue with Best Buy on the electronics retailer's board and will become the chairman of its audit committee. In a separate announcement, Best Buy announced that it had offered its
, Richard Schulze, access to confidential information intended to help him with a bid to take the
. Schulze is the company's largest single shareholder with 20.1% of the company.
“The primary purpose of the proposal was to assist the board in maximizing value for all Best Buy shareholders by creating an incentive for Mr. Schulze to offer his best proposal to the board of directors during these discussions and to minimize Mr. Schulze’s ability to disrupt the company going forward,” the company’s board said in a statement.
Schulze was reportedly unhappy with some of the terms and was negotiating for improved terms.
A statement issued by Schulze said, "We were in the process of negotiating an acceptable standstill period when, without notice to me or to any of my advisors, the board issued its announcement.”
He added, “I am shocked by this course of action but as the largest shareholder of Best Buy, I remain hopeful that the Board will engage in good faith discussions with us for the benefit of shareholders, employees and customers.”
New York Times
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RE: Transition to Online and use Best Buy as warehouses
8/20/2012 11:17:42 AM
The problem with that is that they would also have to change their policy of ridiculously overcharging. That policy is the #1 reason for Best Buy doing poorly. If everyone else is cheaper people aren't going to keep buying from you.
They need to go back to competitive pricing. If they price at Amazon+shipping people will flock back. They could definitely cut down on staff (sorry Best Buy employees) and stop carrying low-movement products to save money and restructure their layout to be more self-service.
RE: Transition to Online and use Best Buy as warehouses
8/20/2012 3:25:50 PM
There's another way of competing with higher prices, which eventually as you said will fail in Canada. BestBuy bought out their biggest competitor Futureshop and then pretended to compete when their within a stones throw from each other. Part of the bigger problem is that the majority of consumers, 95%, do not read the financials and know who's buying out who. The majority of consumers, 95%, still believe that their is competition.Same as when you ask a consumer,who owns The Source? They can't tell you that Bell bought Radioshack and renamed the stores to The Source, and haven't figured out why they can only buy Bell and Virgin cell phones there,to them that's competition.
"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer
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