(ICSC RECON is coming up and GlobeSt.com has a month of special coverage in the works. Don’t miss a bit of it. Click here for more information.)
Best Buy, in a move that people have seen coming for a while, is closing 50 stores after reporting a less-than-stellar fourth quarter.
Actually, less than stellar is probably an understatement. Best Buy lost $1.7 billion in the quarter after write downs and experienced a 2.4% same-store sales decline.
One of Best Buy's biggest problems is Amazon.com. A Forbes article that we have cited before basically calls Best Buy a showroom for the online retailer. Plus, what is the different between Best Buy and the electronics sections of places like Walmart and Target?
During a conference call with analysts and investors, CEO Brian Dunn blamed an uncertain consumer environment." Fair enough. But there is another electronics seller out there named Apple, that isn't doing too poorly right now.
Dunn's solution is $230 million in cost cuts this year that also include cutting the square footage of some stores by 20%. The retailer also wants to open more Best Buy Mobile units. Analysts quoted in a recent Marketwatch story had mixed opinions, with one saying it would hurt its relationships with vendors and customers, while another asserted that its a "positive step in the right direction."
What do you think of Best Buy's future. Can it be a relevant powerhouse chain again, or will it slowly go the way of Circuit City?
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
