Posted on 01/02/2012 9:56:28 AM PST by Las Vegas Dave
Electronics retailer Best Buy is headed for the exits. I can’t say when exactly, but my guess is that it’s 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 company’s stock has lost 40% of its value. It’s 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 don’t look good. They bear out a prediction in March from the Wall Street Journal’s 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 Apple’s 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 ...
Amen on CompUSA. They also had huge disdain in my experience for their customers. When I returned 3 memory sticks in a row that did not work, they were very obvious in questioning my ability to operate a computer (when I knew more about the problem than they did). I also had problems in the store with salespeople apparently assuming because I was female I was an absolute idiot regarding computers.
Martin DX1AE x Series Dreadnought Acoustic-Electric Guitar....
It’s not “bait and switch” if you didn’t get there in time. Retailers don’t have limitless inventory of a particular doodad that happens to be on sale that week.
Go figure...
It's the best of both worlds for them. They can charge higher in store prices for an item and charge a lower price for the same item online to customers whose demand is more elastic. Since they have so many trucks carrying goods to all their stores scattered across the US, they don't have to pay UPS or Fedex to ship the merchandise to customers' homes or business, they just put the items bought online onto their own trucks and not have to add on a freight charge. The in store prices are still competitive against local retailers while not giving up online sales.
DING! Winner. Spot-On. With the exception of food, prescription med's and some clothing items, we've been buying EVERYTHING online for over 10 years now.
Not only can you always find a better price, what better way to "starve the beast" of taxable revenue? I live in Illinois. Our income taxes just got jacked up 66%, gotta save money somewhere, so guess where that is? You bet - SALES TAX.
I can always find better electronics deals at NewEgg or other online resources, save on the sales tax and get free shipping. I've been using Best Worst Buy as nothing more than a place to put my hands on a product to decide if I like it or not, then buy online. Been doing that for at least a decade.
I do the same for shoes, clothes and even furniture. Always cheaper to buy online, save on the sales tax and get free (or minimal cost) shipping.
If for no other reason, folks should be doing it to deprive their states of sales tax to force their governments to shrink.
Neither is Best Buy's.
They need to do one thing well: Appeal to instant gratification. Amazon can't make my new toy appear in front of me today, Best Buy has that ability.
They squander that ability by making every purchase an ordeal meant to hang a credit card and an extended warranty around your neck. They make buying a TV almost as hard as buying car.
The Best Buy near me did the same for fuel efficient cars and also had spots for "Parents with Chidren." Anytime I ever went by there, the spots for "Parents with Chidren" were inevitably taken up by single folks or teenage drivers.
And why not, those aren't legal signs and you can't get a ticket for parking in them if you're not driving a "green car" or don't have kids, so I park my Ford F-250 FX-4 Quad-Cab Diesel in the "Green car" spots.
Yep, it pisses the 'greenie weenies' off which is just how I like it.
ME: You have GOT to be kidding... Okay, well how about a Master Card?
Sam's Club takes Discover cards, because Wal-Mart owns a portion of Discover. They do take VISA debit cards that can be processed as credit cards.
Certainly I know that I lead a very blessed life. Texas is a very red state. I was born and bred here; I am a 6th generation Texan.
There’s no place on earth that I would rather be.
Had one open up here, also about a mile from a Best Buy. Have to say, HH GREGG sucks. Prices aren't any better than any of the local retailers, the selection (here anyway) is somewhat limited, and they sell the off-brand "Coby" and no-name stuff for nearly the same price as Sony, Panasonic, etc..
I was looking at a new Onkyo receiver & amp for my home, the same make & model at HH Gregg was more than $120 less at Crutchfield and several other online vendors.
Really don't care for HH Gregg. When they first opened here back in October, their parking lot was full every day. I went by there today on my way to Tiger Direct to pick up some cables that I wanted today, the parking lot was more than half empty while everyone elses' was full. I suspect their time in the market here is going to be pretty short.
I live about 5 minutes from a Fry’s and have not been to Best Buy since Fry’s opened. I do find the Fry’s employees more helpful; and they have a huge selection. I also buy a lot online.
They merchandising, marketing and advertising all fail. A Boston marketing exec, long retired, I could still fix them up fast.
Shame their failing is so easily reversible.
Glad to see I wasn't the only one. I found them disturbing, not funny.
Since I have become an Apple convert, I pretty much get my stuff at the Apple Store, instead of Best Buy. It’s nice to be able to have them fix my computer, and get it back the next day.
Other than the high prices, my biggest gripe with PestPie is the constant throbbing of hip hop “music” that saturates the store. It makes shopping an ordeal instead of a pleasure.
I agree it really does work out for us, we purchased several items this way and saved a lot over the “impulse buy” in the store. Now when I go in and see something I might want we go back to the car and price match it with the on-line price.
My wife is a big shopper and loves using coupons, so she makes one round trip anyway to the different stores in town. Unless we needed it that day for some reason we’ve been saving quite a lot of money this way.
One of our other problems this has helped with is getting packages delivered to our home out in the middle of BFE with a signature required. Unless I get it delivered at my work having it come to our local Walmart for pickup at our convenience is a big plus also.
I’m not software literate so I like that I can take my laptop to someone who knows what to do when problems arise. I would prefer to purchase online but I’m screwed if the puter acts up.
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