Skip to comments.Why Best Buy is Going out of Business...Gradually
Posted on 01/02/2012 9:56:28 AM PST by Las Vegas Dave
Electronics retailer Best Buy is headed for the exits. I cant say when exactly, but my guess is that its only a matter of time, maybe a few more years.
Consider a few key metrics. Despite the disappearance of competitors including Circuit City, the company is losing market share. Its last earnings announcement disappointed investors. In 2011, the companys stock has lost 40% of its value. Its forward P/E is a mere 6.23 (industry average is 10.20). Its market cap down to less than $9 billion. Its average analyst rating, according to The Street.com, is a B-.
Those are just some of the numbers, and they dont look good. They bear out a prediction in March from the Wall Street Journals Heard on the Street column, which forecast the worst is yet to come for Best Buy investors. With the flop of 3D televisions and the expansion of Apples own retail locations, there was no killer product on the horizon that would lift it from the doldrums. Though the company accounts for almost a third of all U.S. consumer electronics purchases, analysts noted, the company remains a ripe target for more nimble competitors.
(Excerpt) Read more at forbes.com ...
It couldn’t have anything to do with ignoring Thanksgiving in ‘10 and recognizing a muslim holiday instead. I told the manager that I would not shop there again because of that.
Not to mention they have a massive number of employees in each store who don’t have time to serve you.
Thanks, I don’t need to......I could have written that article in 5 lines. Best Buy is done; but, I think it’ll sort of hang on, in a ghostly fashion, for 3 to 5 years more. Sears/K-Mart are done as well; just sinking faster.
I don’t know how else to describe it, but it just annoys me to shop at a Best Buy. Most of the employees are near useless.
People are turning more and more toward shopping on-line, especially as they see how easy and convenient - - and quick - - shopping that way has become. Smart investors should be looking at on-line retailers as well as companies that facilitate the delivery of merchandise.
The “Game On, Santa” ad campaign was a turn off for me..
Before it closes be sure to prank them!
All electronics retailers head for the exits sooner or later.
Before Circuit City went under, Kelly and Cohen, Sun TV, Silo, Service Merchandise, etc.
The only anchors in the business seem to be Sears and Radio Shack, everyone else is expendable.
Something about this entire line that makes it very difficult for companies to stay, no matter how big they are.
Two words - Amazon Prime.
Also it doesn’t help that as others have pointed out it’s not any fun to go there and also they couldn’t have a bigger disconnect between their name and what actually goes on in their stores. “Best Buy” my Aunt Fanny.
You really can't beat NewEgg.com and similar online merchants for TVs, computer hardware, and especially connectors and adapters.
Online you can find exactly what you want and need. At Best Buy -- not so much.
We have found several good deals on their big ticket items, but they will bend you over and rape you with a splintered bat when it comes to cables, dvds, etc. I can’t imagine the number of people who go in between November and Christmas who get a really good deal on a Blu-Ray player and 60” LED, only to get suckered in to purchasing all of the HDMI cables at $40 a pop rather than going to monoprice and getting them for $2.50.
I do a lot of shopping in our local Best Buy and I find them to be helpful, courteous, and knowledgeable. It’s going to be a big loss to our community if they shut down.
Actually, it has nothing to do with Best Buy recognizing or not recognizing Christmas, or Thanksgiving, or any muslim holiday. A microscopic portion of the American public makes buying decisions based on that. The reason Best Buy is doomed is very simple.
If I want to buy say.. a camera, I’ll go to Best Buy, and find the one I like most. I’ll then log on to Amazon, buy it tax free at a lower price, and it will be at my house in two days.
Best Buy is Amazon’s show room. The competitive market, and ridiculous sales taxes (that they can’t control). THAT is why they will slowly go out of business.
Best Buy sucks!! It’s a sales pitch from the time you step in the store till when you pay. Even the cashier is trying to sell you a “extended service plan.” I went there about ten years ago and never went back. A most unpleasant shopping experience.
Best Buy is pathetic in comparison.
CompUSA had the worst salespeople. All they could do was read the card listing the specs for you.
Was just about to say that. Went there yesterday to pick up a few games I ordered. I was second in “customer service” line and waited for 10 minutes while one person worked and 5 other employees stood around behind the counter.
In a rare defense of Brick and Mortar stores...:
How many of us are guilty of wasting sales staff time “researching” a product, only to leave the store empty handed and purchase on-line.
I’ll admit to going to stores to learn, touch, and feel, but I ALWAYS decline offers to assist, when I know I’m buying on-line.
To be honest, in the past, when I was interested in buying a product, I would always got to the Best Buy in my neighborhood which had a very attentive staff. I would get the lowdown on the product- and then I’d buy it online cheaper and with no sales tax. I believe the sales tax advantage is now gone, but I’d probably still buy online.
Too bad. On black Friday I bought my daughter’s Kindle Fire, my wife’s Samsung Galaxy tablet, my son’s cell phone, my other son’s Martin guitar, and my Lenovo laptop there. Was in and out in under an hour and got pretty good deals on everything I bought....
I understand the words, yet they make no sense.
I'd rather read the reviews of many people who've owned the product than rely on some kid who's trying to strong arm me into some useless warranty.
I am willing to pay a little more to a retail store, but BB employees are useless. In the last 15 years I NEVER got help from a solitary employee and gradually stopped going.
If I want that service I can go to the wholesale club and get the same TV for less.
For what it is worth, at the present time, both retailers are in financial trouble, losing market share, have diminishing margins, are cutting employment, and are closing stores. A lot of smart money is betting they will be wiped out sometime within the next decade -- sooner rather than later.
I had the same experience when I went there to buy DVDs for gifts. They didn't have what I wanted, but I couldn't get the saleswoman to leave me alone.
I finally told her: I have Verizon FIOS, and I'm staying with them. I'm not interested in anything else. She finally got the hint.
The next time it happens, I'm going to tell the manager that I didn't come into the store to be bugged by a DirecTV salesman.
I purchased an “as-is” display model stove from them a few years ago. They dropped it off the tailgate onto the concrete while loading it on the truck. The glass top shattered and it had a huge dent in the side. The employees that dropped it had the nerve to laugh and tell me that it’s mine now as they walked back into the store, leaving the stove turned on its side on the ground.
I have never shopped at Best Buy since.
All you have to do is compare the business model at BB vs how it was say, 10 years ago, with the how other retailers like McDonalds have innovated and changed.
BB is going the way of the Sears catalog.
Seems like the corporate franchise stores are bending over backward to tailor their “shopping experience” to the atheists, hoplophobes, and sexually confused and are willing to alienate everyone else to do it.
Because the sales-people think they're uber-geeks but actually possess the same tech savvy as toe jam? Because they surreptitiously sign customers up for their ripoff extended warranties after they've repeatedly declined the high pressure push for the actuarially fraudulent scam? Because they add software to computers you purchase without your knowledge then give you the choice at the register to either pay for what you DIDN'T ask for, or wait to have them remove it? Because the terrestrial entrance to the netherworld is in their lunchroom?
Although, come to think of it, yeah, the "gradually" part does baffle me.
Their Black Friday deals are usually very good. They had the biggest discount on the Ipad 2 this year, which was something I bought.
For the past few years I'll go about an hour after they open to miss the camping out crowd, then get whatever I want. After purchasing everything from all of the different stores I frequent, I'll price them out on Amazon when I get home. If I find it cheaper, I'll order it online and take the product back to the store.
Exactly! Plus, talk about the ol’ bait-and-switch! Alive and well at Best Buy. Whatever great sale is in their ad, you can be sure they will be out of stock by the time you arrive. You can wait for it (an always undefined length of time) or gee, we have this great model of your item over here but it’s just a little more. You can pay that and take it home today. Story of every Best Buy shopping experience over the years here.
As mentioned above, I go to Best Buy to examine the product and then buy it from Amazon. No sales tax (yet) and delivered to my door. No salesperson trying to up-sell me either.
For computers, digital cameras, cellphones, Blu-ray players, etc... I find on-line to be a better source of information.
On-line tends to give the exact dimensions, exact specifications, exact capabilities, and multiple reviews. Whereas the in-store approach leaves you having to rely on the mentally challenged ‘help’ for that information. And nine times out of ten, they’ll go to their computer and look it up on-line, anyway.
Well, the good ones do, the rest just say, “I dunno.”
Televisions are about the only electronic item that I still need to see work in person.
Or the direct youtube link is:
I agree, but the brunette with the short hair was attractive. The Walmart ads were more annoying.
Back in the day, stores like that were all we had -- Sears, Radio Shack, Circuit City, Best Buy, etc. Now we have options, and we don't need them.
I sure wouldn't be holding their stock if I owned it. It will continue its downward spiral, just as the article states.
same here. I got my new HDTV from Best Buy.
Would that it were so! I'm straight, white, AND male, and I've never been so fortunate as to escape their predations.
I'm not a big fan of online shopping, and I rarely, if ever, go into a retail store without walking out with something that I purchased. It's not that I'm a compulsive shopper, either . . . it's simply that I don't bother going to a retail store unless I have something I need to buy.
My prediction is that some of these traditional retailers are going to get a chance at a "second life" when online sales are subject to taxation. It's only a matter of time before this happens, in my opinion.
I will miss Best Buy when they go under.
In the article, the kind of customer -insensitivity- you mention is presented as typical of the whole organization.
I only buy my computers there because I can take it in if needed or return if warranted. I’m afraid to order online - what if something happens?
Eventually you will no longer have that option when all the B&M locations are shuttered.
Retailers everywhere have the same problem, how to adjust to the pricing realities of internet shopping (and mobile phone apps that let you compare prices while standing in the aisle).
May 2008, I decided to take a chance, ordered a Sony Bravia 52" from them. They had a great deal, it was $1999 ( super price back then..free shipping, and of course, no sales tax...couldn't find any retailer that could even come close to the price.
The set's delivered exactly when it's supposed to arrive, they even called a few hours early to confirm that I'd be home. The next day, the cable guy arrives...I'm not really god with this stuff, and my cable provider..BriteHouse, offers free installation and hook up of any new sets..and I give the guy a tip, and he hooks up the DVD for me as well, and goes through all the start up stuff.. Well, the TV doesn't work..no picture...I'm starting to worry..we call Amazon, the connect me to Sony technical support...happily for me the cable guy is still there to talk to Sony..as they trouble shoot...they figure out something is broken inside the set, and Sony tells me they can have a repair guy out to my place in two days to fix it. I call Amazon back..tell them I'm not happy, instantly, before I can say anythign more, the guy says they will ship me a new set..it will be there in three days, and they will pick up the damgaged one at the same time..I'm amazed..and very happy...and to this day I order everythign and anythign from Amazon without any worry whatsoever..
Anyone have any experience with HH Gregg..one just opened near me..and a half mle from from the Best Buy...they're supposed to be pretty good...their sales staff isn't commission based..
“My prediction is that some of these traditional retailers are going to get a chance at a “second life” when online sales are subject to taxation.”
Bingo. There are some things online shopping just cannot do either. Used bookstores, for example. Yes, of course you can get used books, but you cannot wander into some dark, odd shop with leaning towers of fusty books and a cat sleeping in the window, while you search for some serendipitous prize.