Posted on 08/12/2022 12:31:03 PM PDT by lasereye
Best Buy has cut store jobs across the U.S. in an attempt to cut costs, according to a report from The Wall Street Journal.
The consumer technology retailer, known for selling products like televisions and gaming consoles, cut hundreds of store jobs over the past week in an attempt to lower costs during a period where retailers are noticing a shift in the way consumers are spending, The Journal reported on Friday.
Best Buy didn’t respond to request for comment from Barron’s
The report comes not long after Best Buy BBY –0.40% (ticker: BBY) offered downbeat financial guidance for its second quarter and fiscal 2023. The company said that same-store sales would drop 13% during the second quarter and 11% in fiscal 2023.
The outlook warning concerned analysts, including Jonathan Matuszewski from Jefferies, who cut his rating on the stock to Hold from Buy.
“As high inflation has continued and consumer sentiment has deteriorated, customer demand within the consumer-electronics industry has softened even further,” Best Buy Chief Executive Corie Barry said in a news release in July.
Best Buy isn’t the only consumer company to provide concerning guidance or to make layoffs over consumer uncertainty in recent weeks.
Several other consumer companies have lowered sales projections for the full year including Sweetgreen (SG), Allbirds (BIRD), Signet Jewelers (SIG), Beyond Meat (BYND), and the RealReal (REAL). Retail giant Walmart (WMT) is eliminating about 200 jobs in a bid to restructure the company.
Shares for Best Buy were 0.3% lower Friday to $80.19. The stock has fallen 21% in 2022.
(Excerpt) Read more at barrons.com ...
Zerohedge pointed out that the other, less widely reported BLS jobs number, (the Household Survey) had a much smaller 179K increase for July. Even more bizarre, the Household Survey shows a loss of 168K jobs since March, compared to a whopping 1.6 million gain in the headline Establishment Survey. I wanted to post the Zerohedge article but FR prohibits Zerohedge articles.
Well, that’s ONE way...........................
But, but.....what about the tremendously growing economy and 0% inflation? Costs should be plummeting.
Good! Ever since I kept getting their stupid emails “celebrating pride”, I figured they’re an anti-Christian organization and I no longer use them.
Wow, I already don’t go there because I can’t ever get those little gen Zers to even help me.
Looks like they’re gonna go the way of circuit city.
Some of it is online sales cannibalizing in-store sales and some of it is an inability to find capable employees.
I’m sorry to hear this. Best Buy has really turned itself around, customer service wise. Years ago, going into a Best Buy was like going into hostile territory. It was not a good experience.
Somebody at Best Buy got the message. Their sales people are now uniformly polite and helpful. That’s been my experience, anyway.
Best Buy boss: “And, as you leave your employed status here don’t let it stop you from voting Democrat all the way. So long.”
Changing their name to Best Bi?
Best Buy.
Where people go to look at what they buy on Amazon.
circuit city had morons for managers..............
Watch them start closing stores.
LOL!!!
I had a bad experience there about returns. I misunderstood the extremely brief physical return period and the totally screwed up item was not eligible a day past the deadline. Sharp said take it to Best Buy, not us, Best Buy said absolutely not, take it to Sharp.
I sent a well written email and the second Sharp employee kindly let me ship it back and they replaced its part and sent it to me free.
Forgot to tell one line I wrote. “If there is a 90 day Sharp warranty but only at the store, but the store refuses it, then it is not an honored warranty from Sharp.” Sharp first said only items bought online directly were “intended” but I said it didn’t say that. Then Sharp said send it back free.
They may have fixed this, but they used to not price match with their website. One time I returned an item to the shelf, put a little pen mark on the package, ordered it online while standing there and got the exact same item for pickup an hour later.
Best Buy is going the way of Circuit City.
They can’t compete against Amazon.
Wait, I thought best economic recovery ever and 0 inflation?
If ur not growinh, ur dying.
Just like Harley Davidson. I’ve been to three separate dealerships and they were basically empty of bikes with a few sales guys just standing around doing nothing
But, the Furries & Groomer Supply stores are hiring more, so it balances out.
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