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Best Buy to close 50 stores by 2013 (1 Viewer)

Andy Dufresne

Andy Dufresne

Footballguy
Link

NEW YORK (CNNMoney) -- Best Buy's stock took a dive on Thursday after the retailer reported quarterly results that included plans to close 50 big box stores in the U.S. by 2013.

Also, the company said it plans to open the same number of stores in China during the same time period.

Best Buy's stock price dropped 8% as the company's better-than-expected earnings report failed to trump the news about shuttering brick and mortar locations.

The retailer reported an adjusted quarterly profit of $2.47 a share. That was significantly higher than the projected $2.16 a share, from a survey of analysts by Thomson Reuters.

The company also said it plans to open 100 "Mobile small format stand-alone stores" in fiscal year 2013. It also said 14 of the new stores in China will be "mobile store-within-a-store concepts."

The company did not describe these types of stores in further detail in its press release, and did not immediately answer a phone message from CNNMoney.

Best Buy has struggled to compete in a market that has become increasingly dominated by online retailers like Amazon (AMZN, Fortune 500).

Best Buy said it was closing the stores to lower costs. The company projects $250 million in savings in fiscal year 2013. The company plans to save $800 million in costs by fiscal year 2015.
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The number 50 is just a starting point, IMO and there'll be many more than that by the time it's all said and done.Used to be a time when the stores were packed. Now every time I go in they're practically a ghost town. I feel like the lone PacMan after he ate the power pill and the Blue Ghosts are running around.

 
:thumbup:

Won't miss them and their bs stocking fee, I told them if they charged me that I would never be back, I was already upset with them. Haven't been back. They are right in line with Sprint and Blockbuster as business' that I love to see fail. :banned:

 
'Andy Dufresne said:
Link

NEW YORK (CNNMoney) -- Best Buy's stock took a dive on Thursday after the retailer reported quarterly results that included plans to close 50 big box stores in the U.S. by 2013.

Also, the company said it plans to open the same number of stores in China during the same time period.

Best Buy's stock price dropped 8% as the company's better-than-expected earnings report failed to trump the news about shuttering brick and mortar locations.

The retailer reported an adjusted quarterly profit of $2.47 a share. That was significantly higher than the projected $2.16 a share, from a survey of analysts by Thomson Reuters.

The company also said it plans to open 100 "Mobile small format stand-alone stores" in fiscal year 2013. It also said 14 of the new stores in China will be "mobile store-within-a-store concepts."

The company did not describe these types of stores in further detail in its press release, and did not immediately answer a phone message from CNNMoney.

Best Buy has struggled to compete in a market that has become increasingly dominated by online retailers like Amazon (AMZN, Fortune 500).

Best Buy said it was closing the stores to lower costs. The company projects $250 million in savings in fiscal year 2013. The company plans to save $800 million in costs by fiscal year 2015.
Click to expand...
The number 50 is just a starting point, IMO and there'll be many more than that by the time it's all said and done.Used to be a time when the stores were packed. Now every time I go in they're practically a ghost town. I feel like the lone PacMan after he ate the power pill and the Blue Ghosts are running around.
Click to expand...
They're basically a showroom for internet savvy consumers.
 
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:

 
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
If they were smart they'd offer better customer service to combat something that Amazon doesn't offer....unfortunately, their employees are schleps for the most part and poorly trained. The one retail electronic store I do shop at is Frys. Much better prices and easy return policies.
 
'Major said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
If they were smart they'd offer better customer service to combat something that Amazon doesn't offer....unfortunately, their employees are schleps for the most part and poorly trained. The one retail electronic store I do shop at is Frys. Much better prices and easy return policies.
Click to expand...
Frys would be so much better if the place was organized. You go in there looking for a hard drive and you'll spend 10mins in the hard drive section trying to figure out what's the best deal. Prices and discounts hard to see usually.
 
'Major said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
If they were smart they'd offer better customer service to combat something that Amazon doesn't offer....unfortunately, their employees are schleps for the most part and poorly trained. The one retail electronic store I do shop at is Frys. Much better prices and easy return policies.
Click to expand...
For a $600 difference, I expect amazing customer service. Like, a month-long pass to Otis J. Nixon levels of customer service.

 
'17seconds said:
'Major said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
If they were smart they'd offer better customer service to combat something that Amazon doesn't offer....unfortunately, their employees are schleps for the most part and poorly trained. The one retail electronic store I do shop at is Frys. Much better prices and easy return policies.
Click to expand...
Frys would be so much better if the place was organized. You go in there looking for a hard drive and you'll spend 10mins in the hard drive section trying to figure out what's the best deal. Prices and discounts hard to see usually.
Click to expand...
This is how they make money - get you lost (like a casino) and then you purchase other things you don't originally come in there for. Go in there knowing the sales item you want, tell the guy to find it for you and bounce. They'll also take a long time to locate sales item in their back inventory so you'll be prone to look around and buy other high margin stuff.
 
'Major said:
'17seconds said:
'Major said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
If they were smart they'd offer better customer service to combat something that Amazon doesn't offer....unfortunately, their employees are schleps for the most part and poorly trained. The one retail electronic store I do shop at is Frys. Much better prices and easy return policies.
Click to expand...
Frys would be so much better if the place was organized. You go in there looking for a hard drive and you'll spend 10mins in the hard drive section trying to figure out what's the best deal. Prices and discounts hard to see usually.
Click to expand...
This is how they make money - get you lost (like a casino) and then you purchase other things you don't originally come in there for. Go in there knowing the sales item you want, tell the guy to find it for you and bounce. They'll also take a long time to locate sales item in their back inventory so you'll be prone to look around and buy other high margin stuff.
Click to expand...
I don't want to ask the sales guy because I get the feeling they don't know the best deal either.I like the place, and I actually don't mind the deal hunt, but it doesn't cater well to the average person.

 
'Sarnoff said:
'Major said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
If they were smart they'd offer better customer service to combat something that Amazon doesn't offer....unfortunately, their employees are schleps for the most part and poorly trained. The one retail electronic store I do shop at is Frys. Much better prices and easy return policies.
Click to expand...
For a $600 difference, I expect amazing customer service. Like, a month-long pass to Otis J. Nixon levels of customer service.
Click to expand...
you get the picture though....great customer service demands a premium and i'll often pay it (not a 30% difference) but def something more reasonable. I also hate dealing with returns of fragile/big ticket items online. If BB wasn't so stingy on their return policies and raping consumers on restocking fees, they probably wouldn't be where they are today.
 
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
:shrug: I did the same thing, but showed BB the internet price, and they matched it, and delivered it that day.
 
'17seconds said:
'Major said:
'17seconds said:
'Major said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
If they were smart they'd offer better customer service to combat something that Amazon doesn't offer....unfortunately, their employees are schleps for the most part and poorly trained. The one retail electronic store I do shop at is Frys. Much better prices and easy return policies.
Click to expand...
Frys would be so much better if the place was organized. You go in there looking for a hard drive and you'll spend 10mins in the hard drive section trying to figure out what's the best deal. Prices and discounts hard to see usually.
Click to expand...
This is how they make money - get you lost (like a casino) and then you purchase other things you don't originally come in there for. Go in there knowing the sales item you want, tell the guy to find it for you and bounce. They'll also take a long time to locate sales item in their back inventory so you'll be prone to look around and buy other high margin stuff.
Click to expand...
I don't want to ask the sales guy because I get the feeling they don't know the best deal either.I like the place, and I actually don't mind the deal hunt, but it doesn't cater well to the average person.
Click to expand...
Not what I was saying. You( 17 Seconds) already know the sales item you want when you go in (from their ads) and you ask for desired product.
 
'Sinn Fein said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
:shrug: I did the same thing, but showed BB the internet price, and they matched it, and delivered it that day.
Click to expand...
yep, this is the shark move but they don't promote this for obvious reasons.
 
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
I buy my TV's from Costco for the 2 year warranty. Too many TV's break after the one year warranty is up and Costco's warranty can't be beat. It's one of the few things I will buy from a B&M store.
 
'Major said:
They're basically a showroom for internet savvy consumers.
Click to expand...
And that's why they should charge the manufacturers more for featuring their products, which would allow them to offer the products at a reasonable price. sony wants best buy to feature their products, or they wont get as many purchases at bestbuy online. They don't have as much leverage if there are dozens of bigbox chains, but now that the industry has consolidated, best buy is in the drivers seat imo
 
'17seconds said:
'TheWick said:
'Major said:
They're basically a showroom for internet savvy consumers.
Click to expand...
:goodposting:
Click to expand...
Haha, yep. Amazon all the way baby.Only reason BB has lasted longer than Circuit City is their in store experience is better. No sales people hounding you, no ridiculous check out on the floor with the sales guy... Generally everything on Amazon is 10% less.
Click to expand...
That's not true anymore. Best Buy has gone overboard with having too many sales people on the floor bugging every customer every ten seconds. I swear, I went to get a CD there a few months ago (because I wanted it the day it came out), I was there less than five minutes, and four different sales people came up to me and asked me if I needed help with anything. That is annoying, and the main reason why I do not go there anymore, even for first day CDs.
 
'cstu said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
I buy my TV's from Costco for the 2 year warranty. Too many TV's break after the one year warranty is up and Costco's warranty can't be beat. It's one of the few things I will buy from a B&M store.
Click to expand...
:goodposting: Costco also has a deal on extended warranties now as well. Don't quote me, but on the 32" LCD I just bought, I believe it was only $30 for an extra 3 years (5 years total) due to the price of the LCD. Way cheaper than I ever recall BB warranties being.
 
The best part is going into their store and telling them you can get the same product for $500 less on amazon, and then they tell you they can't match Internet prices. Basically admitting defeat.

 
I find this news disappointing. Sometimes I just want to go buy something that day and don't really care that it cost me a little more. There aren't any great options for electronics around here other than Best Buy.

 
'Sinn Fein said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
:shrug: I did the same thing, but showed BB the internet price, and they matched it, and delivered it that day.
Click to expand...
I've gone to my store numerous times with amazon prices and they decline. Last time I just bought it on my amazon app on the way out of best buy.
 
'Ghost Rider said:
'17seconds said:
'TheWick said:
'Major said:
They're basically a showroom for internet savvy consumers.
Click to expand...
:goodposting:
Click to expand...
Haha, yep. Amazon all the way baby.Only reason BB has lasted longer than Circuit City is their in store experience is better. No sales people hounding you, no ridiculous check out on the floor with the sales guy... Generally everything on Amazon is 10% less.
Click to expand...
That's not true anymore. Best Buy has gone overboard with having too many sales people on the floor bugging every customer every ten seconds. I swear, I went to get a CD there a few months ago (because I wanted it the day it came out), I was there less than five minutes, and four different sales people came up to me and asked me if I needed help with anything. That is annoying, and the main reason why I do not go there anymore, even for first day CDs.
Click to expand...
What's a CD?
 
'cstu said:
'Snotbubbles said:
Bought a TV on Amazon for $1800 (free shipping). Before I did, I went to Best Buy to see how the picture looked. Best Buy was selling the same TV for $2399. Can't imagine why Best Buy would be losing customers. :shrug:
Click to expand...
I buy my TV's from Costco for the 2 year warranty. Too many TV's break after the one year warranty is up and Costco's warranty can't be beat. It's one of the few things I will buy from a B&M store.
Click to expand...
Yep cant beat the free 2 year warranty on all electronics.
 
Yikes

Best Buy Loses Big in 4th Quarter – Closing 50 Stores

The company was down over $2 billion from 2010's numbers.

Things aren't going well at Best Buy right now. Over the last year profits have dipped, expenses due to restructuring have increased and the ledgers aren't looking quite as good as they used to. In the fourth quarter of 2011, Best

Buy lost $1.7 billion dollars – a huge change from the $651 million they brought in during Q4 2010.

The plan at the moment is to continue a mobile focus. The company will be closing 50 of its big-box retail locations but open another 100 mobile kiosk locations during the current fiscal year.

Best Buy is also going to keep pushing into China, where it plans to open 14 kiosk style locations and another 36 big-box stores.
Click to expand...
 
When companies like Amazon not only offer products at a lower price, but also kickass customer service, general good-will among its customer base, and doesn't have annoying-as-#### salesmen trying to ram a sale down your throat, it's easy to see why places like Best Buy will be shuttered in the coming years.

 
I stopped shopping at Best Buy years ago. Any store that stops paying customers at the exit and demands to see the contents of their bag and receipt should go out of business. It always amazed me that people put up with that. The B.S. stocking fee has already been mentioned.

That said, their business model is the issue and not their Gestapo tactics. Yes, I went there.

 
Last edited by a moderator:
'Ghost Rider said:
'17seconds said:
'TheWick said:
'Major said:
They're basically a showroom for internet savvy consumers.
Click to expand...
:goodposting:
Click to expand...
Haha, yep. Amazon all the way baby.Only reason BB has lasted longer than Circuit City is their in store experience is better. No sales people hounding you, no ridiculous check out on the floor with the sales guy... Generally everything on Amazon is 10% less.
Click to expand...
That's not true anymore. Best Buy has gone overboard with having too many sales people on the floor bugging every customer every ten seconds. I swear, I went to get a CD there a few months ago (because I wanted it the day it came out), I was there less than five minutes, and four different sales people came up to me and asked me if I needed help with anything. That is annoying, and the main reason why I do not go there anymore, even for first day CDs.
Click to expand...
Best Buy is terrible at this. Only have gone in there a couple times this year to browse around. Time after time someone says something to me. "Finding everything okay?" "Anything you need help finding?" "Can I help you?" This is all in ten minutes. Next time I go in there I'm putting headphones on and when I pass a sales person I will utter under my breath "Amazon". The day of reckoning is coming.
 
Whether you like Best Buy or not, I don't want B&M to start rapidly disappearing. I like going to stores. I like the mall. And I even like Best Buy. :bag:

 
There will always be a need for B&M stores for things like speakers and TVs because of the subjective qualities of them. I miss the days of the Gordon Electronics and Tech HiFi stores, but their days have long passed as people care more about portability of sound rather than quality.

 
Let me address this as someone with 20 years in retail commercial real estate:

Andy is wrong. The end of retail is not near. The end of big box retail is near. 20,000-30,000 square foot tenants are a thing of the past. There will be new "Best Buys", or their equivalent, but they will be 5,000-10,000 feet. The inventory will be downsized dramatically.

The internet is not destroying retail. But what it's doing is returning retail to what it was 20 years ago, before most of the big boxes arrived. The big boxes can be seen as a 10 year bubble, and that bubble is winding down. This of course is very unfortunate for property owners who had big box tenants paying the bulk of their rent. They're going to have to revamp their centers or they're facing a total loss. But the owners of smaller shopping centers with lots of small tenants on signaized corners- these guys are going to be better than ever.

 
At yet somehow Radio Shack is still around. One of greatest mysteries I will never understand is how Radio Shack stays in business.

 
One of the worst piece of crap stores ever.

I honestly don't know how it held on this long...I guess since all the competition dried up (Circuit City, CompUSA, etc).

Fry's is where it's at...and of course, online. But Fry's will match online prices...so...screw Best Buy.

 
'TwinTurbo said:
At yet somehow Radio Shack is still around. One of greatest mysteries I will never understand is how Radio Shack stays in business.
Click to expand...
Radio Shack has to be a front for some organized crime or something.I've not bought a single thing in that store in over 20 years...and every time I've found myself in there because I'm just wandering around or something...I see items that are 4-5 times it's cost online. I don't get it...never will.
 
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