Originally Posted by dnoyeB
I'm not surprised. Their prices were always worse than Circuit City. When CC folded, BB prices and policies seemed to get even worse. I go in there only when they have a strong sell. Even at Christmas time they are not competitive.
Since BB has chosen to "restructure" as opposed to cut prices, its not likely they will survive. They will need another CEO that institutes different prices and policies, IMHO.
Originally Posted by PanteraGSTK
I worked for Circuit City when their stock was that low. ...I don't want to see the day when Wal-mart and sears are the only big box stores left.
Hello my name is DA1745 and I too used to shop at Worst Buy. (Hello DA)...
Whenever I venture into BB it's either bc I stack a deal or they mad a mistake or in some why I feel I can screw them...like they do to others (me in the past). Or it's to play with a TV/something I intend to buy online.
Ok so I have no love for either The Empire (Wally-world) or The Huts (Worst Buy) - And Sears is simply on shaky ground so to the second poster you won't likely have to worry about them being a B&M option in the projected future.
But I'm not sure you are fully reading what was written. Best Buy to my dismay is doing quite well considering the economic times. Comparable (non-internet-retailer-electronic-sales where down double what BB was). They took a hit but that won't be on the books the next quarter and the next quarter etc. If you ask me those who control and own the majority of BB stock used this as a maneuver to buy back shares of the company at a lower price, just wait and watch as long as the economy stays status quo in a lackluster slow growth state their earnings will be up into the high $1.80-$1.90 next few quarters netting those that bought stock lower a nice investment.
BB looked at other stores that have done the lower prices / lower profits route and at this point have data to show that while sales of course increased the volume necessary to make that a viable business plan simply were not supported. BB is screwed either way for the management I think
for non-a$$#ole management who will lose their jobs I think
that I felt the other thing. But continuing on their current path is simply a slower death!
Scenario one: close some overseas, maybe some domestic restructure, trim workforce same pricing structure... this is what I think of as the running out the clock strategy. Internet with it's ultra low overhead (no store rental location - chains to staff, to heat or cool etc.) grab more and more of the market every year. BB simply will lose more and more market share as people get clued into internet electronics.
Scenario two: they try to compete with the like of Newegg, Amazon, Fry's, Tigerdirect. They can't because of their overhead (warehousing, fuel costs shipping to stores, staffing employees, utilities, rent, state taxes) their sales go up but still their prices are $20, $30, $40+ more than the best deals found online ---> better than the $200-$300 previously but the volume necessary to compete at that level they fall so far from that within the first year after restructuring stocks fall, confidence is shaky, unlike in the past before other established retailers fell, knowing what awaits them like CompUSA, CC, Bed Bath & Beyond investors head for the hills. Company fails at an accelerated 1-2 year timeframe. That would be as my re-re nephews say an EPIC FAIL!