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 ...
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!
http://improveverywhere.com/2006/04/23/best-buy/
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.
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