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Shoebox

It’s going to be tougher for Best Buy to remain relevant as online retailing becomes more prevalent.

By Tony LoPinto | Updated on July 10, 2012

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Shoebox Best Buy, the (former) icon of the Big Box Age of retailing, has changed direction. The Wall Street Journal reported in its weekend edition that the retailer is now focused on developing a “shoebox” approach to its customer experience, in lieu of the “big box.” The company announced that it is eliminating 2,400 store jobs – including 600 positions on its Geek Squad – as the electronics retailer tries to steel itself against online competition. The cutbacks are only a small percentage of the company’s total workforce, but they represent a growing riptide that will only expand as Internet-based retailing undermines companies saddled with major real estate positions. Companies such as Best Buy rationalize that the touch and feel of hard good stores, while becoming smaller in size, make a difference. Alas, it’s increasingly not so, as Amazon.com and other online sites can provide dozens of customer reviews that trump the advice and salesmanship of Best Buy’s geek guys. Sure, you’ll want to touch, feel, and see the Sony TV before you shell out $1,500, but in the future you’ll only need to visit a small storefront or pavilion in a mall to accomplish that. Then press the send button on your iPhone to close the transaction, and await delivery at your doorstep tomorrow before noon.

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