Posted on 03/29/2012 8:06:03 AM PDT by Hojczyk
Electronics retailer Best Buy announced it would close 50 big box locations in the U.S. as it refocuses its operations around mobile.
The company said it will launch 100 new mobile locations as it retools its domestic store format. The announcement was timed with the company's fourth quarter report, where it sharply beat analyst expectations on the bottom line. Over the final quarter of 2011, revenue grew three percent to $16.6 billion while earnings per share hit $2.47.
However, analysts polled by Bloomberg had forecast top line results of $17.15 billion, some $500 million more than the company reported. The quarter also benefitted from an extra week in the company's fiscal calendar — excluding the week would mean revenue actually fell 1.1 percent. Shares were down 6 percent in the first minutes of trading.
The company saw same-store sales decline 2.3 percent during the period, highlighting its difficulties as the U.S. economy gained steam during the first few months of 2012. Best Buy saw weakness across the board, with sales suffering in gaming, notebooks, digital imaging and televisions.
Best Buy has rapidly been trying to turn its operations around as it has seen peers CompUSA and Circuit City fail. Consumers have been using its locations as a testing ground for products before making final purchases at competitors like Amazon and Walmart.
Best Buy is targeting more than $800 million in cost savings by 2015, largely expected through layoffs and the aforementioned store closings. The targets are roughly split between corporate, retail and declines in costs of goods sold. The company will layoff 400 employees within its management and support channels.
(Excerpt) Read more at finance.yahoo.com ...
If there is sales tax in your home state, Amazon might not pay it, but you must.
“The main reason I go to Best Buy is to try out the items that I will later buy much cheaper online from someone else.”
I’ll pay extra to buy from a brick and morter, I appreciate the ability to physically look at products before I buy them. Unfortunately, I’m in the minority and sometime in the future, I’ll be stuck blind buying from the internet.
NOT_FEELING_THE_LOVE_HERE_PING!
It depends on the cost differential. Instant gratification is worth a couple of bucks to me. But often at Best Buy that cost differential is WAY too much. I had decided to get my CDs out of the jewel cases and into books, I’d looked around online and basically decided on my model but wanted to see them. Went to BB and decided yup those were it, but I needed 5 and at their cost differential to Amazon it was just insane to buy them from BB, basically my Amazon price for 5 was the same for 3 1/2 from BB. If it had been 2 or 3 bucks different sure I’d have bought there, but 5 for the cost of 7 was not acceptable.
There is one type of item that I do consistently buy still from Best Buy... any item I think I am likely to return, because it’s so much easier to return things to them than deal with the mail.
The BLASTING rap music super over priced pieces parts for computers (and out of date to boot) it is a nightmare to have to go there.
I went there to LOOK at tv bracks and found them to be DOUBLE what other places were selling.
Not to mention the fact if you do buy anything they will try and sell you a warranty. “Would you like a warranty with that pack of tic tacs?”
[close 50 big box locations in the U.S. as it refocuses its operations around mobile.]
Um. Right. I’m going to go to a store and let some annoying ignorant salesperson sell me a phone I could have delivered next day. NOT.
{shrug}
Buh Bye Best Buy.
“I’ll pay extra to buy from a brick and morter, I appreciate the ability to physically look at products before I buy them.”
Same here, and if the product is defective, I don’t have to wait as long to stuff it up their nose.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.