Best Buy Beefing Up Web, Downsizing Stores - AVS Forum
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post #1 of 109 Old 04-04-2011, 10:31 AM - Thread Starter
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Best Buy Beefing Up Web, Downsizing Stores
The Plot Thickens


Best Buy is rebalancing its channel strategy to address market share gains by online retailers, including Amazon.com. In the process, the company is dramatically expanding its online-only assortment, is promising to price those products aggressively, and has begun shrinking the footprint of some of its big-box stores as they come off lease. The chain has also not ruled out the possibility of closing some of its larger locations outright. In a fourth-quarter earnings call last month, co-Americas president Mike Vitelli said Best Buy will offer very aggressive pricing on a much broader online-only assortment to improve its price perception with customers. The move is designed to help counter mobile price-comparison technologies, which can put in-store stock at a disadvantage because price checks don't reflect value-added promotions like extended financing, loyalty program discounts and bundled offers, he said. The low web pricing will be achieved through a combination of supplier fulfillment, two-step distribution and Best Buy-owned inventory, he said. Still, CEO Brian Dunn stressed the importance of maintaining a brick-and-mortar presence to differentiate Best Buy from online-only competitors. Stores allow in-person consultations, provide a convenient pickup option for ecommerce orders, and will give the company a competitive advantage should tax policy favoring e-tail-only merchants change.

For links and more stories visit the Hot Stories section at HomeToys.com
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post #2 of 109 Old 04-04-2011, 10:35 AM - Thread Starter
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Following up on our last story about Best Buy, this seems to answer some of those comments about Brick and Mortar retailing that I was getting at.

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post #3 of 109 Old 04-04-2011, 02:00 PM
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Internet Explorer for Mac? Did you travel back in time to get that screen shot?
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post #4 of 109 Old 04-04-2011, 02:07 PM
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Apparently back far enough that you could still buy a 4 Megapixel digital camera
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post #5 of 109 Old 04-04-2011, 02:26 PM
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I'm asking myself as do they have a rough number of people that are not spending any money? I know of many people are not buying anything, especially electronics that changes every other year......

Here comes the Internet Tax, the online buying tax, and anything else uncle same can blame something on tax, shipping electronics / hazardous tax.....

Oh don't forget when they close stores, there's a lack of corporate property taxes, so we know who will be forced to pay that too....
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post #6 of 109 Old 04-04-2011, 02:41 PM
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I'm not surprised by this move. It seems a bit reminiscent of blockbuster, alto they may be better off then blockbuster when they started doing by mail dvds and streaming to compete with netflix. It may be too little too late, when I think best buy I think of it as a browse to test new products places but buy online at Amazon. They need to get the in-store prices cheaper and start doing free shipping online.

Here's a story, last December I wanted 3 3d movies. Despicable Me, Step Up 3d and Resident Evil 3d. These movies were all on pre-order and had different release dates. The movies about $40, RE3D $30 so about $110 for the movies. With bestbuy online they charged me over $150 with separate shipping cost and taxes on each movie. I put my order in, then later looked over at amazon for the same movies and got them for $90 shipped. I saved $60 shopping at amazon over best buy. This in my opinion is a stigma they will never beat as being a bit pricey even online.
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post #7 of 109 Old 04-04-2011, 05:49 PM
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Best Buy was awesome in the 90's.

My perpetual home theater build - Omaha Theater #5
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post #8 of 109 Old 04-04-2011, 09:12 PM
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Quote:
Originally Posted by nebrunner View Post

Best Buy was awesome in the 90's.

I didn't even know about bestbuy in the 90's since they didn't exist in my neck of the woods.

What was different?
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post #9 of 109 Old 04-04-2011, 09:12 PM
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interesting this is being considered, I learned a couple days ago that Best Buy is going to break off their gaming section into it's own department instead of lumping it with computers, movies, car audio, and the like. Makes me seriously wonder if there will start to be stand alone BBY Game stores to compete with Gamestop.

Must..find...technogoodies!!!!
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post #10 of 109 Old 04-04-2011, 09:43 PM
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My favorite is my movie pickup from 2 online-pickup orders just this evening. They just yanked the titles of their shelves and put them in the bag for me to walk out of the store with along with the signed receipts. Every blu-ray was under $10...

However I saw price stickers of: $20, $23, $23, $13, $17, $22, $20,$17,$25, $25.

Man I hope they put up the screen from the IE browser on classic Mac as a joke. What is that, 14-15 years old?
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post #11 of 109 Old 04-05-2011, 04:05 AM
 
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Word of Caution When Buying/Returning as Best Buy/Retail Equation Track Purchases and Returns and aggregates with consumer purchases from other stores.

Many AVS members have purchased and returned defective products over the years. Lets use one of the most common and frustrating examples: LCD TVs with clouding, banding and flash-lighting in the corners. Some members have purchased 3-5(!) of these displays trying to find an acceptable one. They worked with Best Buy too. At $4000 each this is $20K worth the merchandise returned.
Now the innocent consumers permanent dossier at the Retail Equation will exhibit return behaviors that mimic fraud or abuse or exhibit habits that are inconsistent with the retailer's return policy. Other stores will pick up on this too! So the consumer can buy, but never return even defective merchandise.
To make a determination the retailer will need to transfer your purchase history to the Retail Equation. As a third party, Retail Equation has no agreement with consumers. They will only talk to you on the phone. No written reports, to fend off the expected lawsuits.
In reality they appear to be aggregating consumers purchase history from many retailers with personal identifiable information. Its not just about returns guys.

Surely this will raise the red flags in Congress, as they have crossed over the privacy line which even Google respects. This type of tracking is illegal in Canada and the European Union.
Phase two is expected to begin selling this potentially negative data for targeted advertising, deny employment, raise insurance rates and background checks. All in secret and without due process. America Today!

Always check with the stores customer service to see if they demand your Driver License for returns with receipts, as this is how they track you. Shopping locally just lost its major benefit: of easy returns. Internet or mail order will only get stronger as a result.
If still buying locally demand to view the TV for defects before purchasing it.
http://www.theretailequation.com/CFaqs.aspx
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post #12 of 109 Old 04-05-2011, 04:06 AM
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Best Buy just had their e-mail lists stolen. Every customer e-mail is now gone, probably to organized crime in Eastern Europe.

Prepare for spear phishing attacks - it's going to be bad out there.

(the same company that "lost" the Best Buy addresses lost Kroger's, Verizon's, and a lot of others)
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post #13 of 109 Old 04-05-2011, 05:10 AM
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Oh goody! Another huge, empty warehouse building in town. I tell ya....these big box stores should be tied by contract to restore the property when they move out. Like the Drug store craze. We have a drug store on every corner in town and now a third of those are empty...some weren't open more than six months.

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post #14 of 109 Old 04-05-2011, 05:12 AM
 
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It's funny that Best Buy can't figure out that their ultra high prices is what's bringing them down. Sure they say they are going to price competitively, but we shall see.

I love their new buy back program. I mean what moron is going to buy a tv and in 6 months Best Buy will give him 50% back towards another tv. Ha ha lol really?? Why would you buy a $4000 65inch tv then sell it back to Best Buy for half what you paid for it. New TVs from manufactures don't come out every 6 months. The only thing this would be good for is a computer and that's stretching it a bit. On top of all that you have to pay for the program. Wow the genius's that come up with this stuff. It's a REAL good program for Best Buy. It's not so good for the consumer. They are just preying on the dumb consumer.

I like going into Best Buy to look at TVs and other stuff. Then I can go online and get the best price for it.

If you want to see blown out prices walk down the Blu ray isle at your local Best Buy store.

Best Buy will continue to over charge for their stuff and continue to fail. Then they will scratch their heads trying to figure out why. Gee I wonder why!!
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post #15 of 109 Old 04-05-2011, 06:47 AM
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When our Best Buys opened here in the early 90's they were competitive on price, had great sales, had no internet companies to compete against, and when they sold scratch and dent or floor sample items, they put crazy low prices on them.

Nowadays if you look at their clearance table they will have a tv with a big gouge in the screen and they will be trying to sell it at 20% off full retail. I could go buy a new one at Costco for less than BBY are trying to sell the damaged one. It was a combination of factors that turned Best Buy into a joke, I wouldn't want to be a stockholder in them these days.

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post #16 of 109 Old 04-05-2011, 06:50 AM
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Our local bestbuy is HUGE, and 40% of the store is dvd's and cd's. BOTH mediums that are completely outdated. Who buys cd's anymore?
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post #17 of 109 Old 04-05-2011, 07:30 AM
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yea but the sales on those $90 monster cables are some times as big as $20 off

ROFL

overall if they went out of business I don't think we would loose anything.
I have not been in their store for years and won't.
Between the stupidity of the sales people and the lying of the management its not worth my time.
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post #18 of 109 Old 04-05-2011, 07:40 AM
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With everything going toward online these days, they might as well follow suit. But their main problem is their arrogance. Like seanbenn said the buyback program is a completely stupid idea especially for home theater where customers want to use their high end tv for about 2 years at least and u get 10% back lol. I work magnolia in one of the store......I just got a job with Sprint, and I will only work best buy as seasonal tho. I don't even tell my customers to buy it, for example I had a customer who I sold a $900 tv to, the buyback was $100, and if they trade it in by 2-4 years they get $90 lol, I begged her not to buy it ( since my manager hyped it up for her). They screw over enough people with the protection plans (making customers pay extra if the "comparable" tv if it costs more even tho they are only supposed to pay if they want something different that costs more).

And don't get me started on clearance stuff. In the last store I worked at, I was allowed to price them for as much as I needed to sell them. So I would sell them as close to cost as possible to get rid of it. Since they lose money every 3 months they don't sell them. Why not sell them cheap now, before they get too old I said. Now when I transferred, this store wants to sell all clearance stuff for 10% off only lol. They cost more than the new tvs, and they put the price of it when it first came out to look like you are getting a deal. And one of the managers that hired me is wondering why their ware house is full of clearance items, and is asking why I'm not selling like I used to in my old store.

They need a lesson in humility, and management with an ounce of business sense.
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post #19 of 109 Old 04-05-2011, 10:43 AM
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We have 5 stores within same 10 mile radius of each other. That is not a sustainable model.
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post #20 of 109 Old 04-05-2011, 02:56 PM
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Quote:
Originally Posted by nebrunner View Post

Best Buy was awesome in the 90's.

I remember those days! Crazy good deals.
Right down/across the street was usually a Circuit City, CompUSA, Staples, Ultimate, not to mention Office Max/Depot.
In some large cities all of these at the same Interstate intersection.

Walmart, Kmart, Target etc. were totally out of it.
Phone order/Online/mail was around then too just not as competitive or dependable.
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post #21 of 109 Old 04-05-2011, 05:48 PM
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You know, everyone here is really tough on best buy. I hate to do it but I got to chime in. They have a large variety and really are the only game in town for a lot of cities. I purchase quite a bit there. I don't mind paying a little more occasionally to have the option to return and the convenience of walking out of the store.

For instance, I needed a cheapo 32 inch lcd for outdoors. Could I have found it cheaper online, yes. But a 50 premium is alright occasionally since I needed asap for a party. Video games, accessories, sonos. I even purchased some appliances that after all the discounts was about the same price as onlin (20% off, free pedestals, 5% reward zone, no shipping) Or last week, I needed a new mac book pro charger. I could go to the apple store and wait 1 hr or be in and out bb in 5 minutes. The list goes on. In summary, if they shut the doors I would miss the convenience.
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post #22 of 109 Old 04-05-2011, 06:54 PM
 
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When they had the 15% restocking fee, I bought one Fuji camera who's pictures were very noisy. After that I never bought anything else that had a restocking fee.
But now they track consumers purchases across stores without their knowledge. Now we find our names and email address just got stolen. Do they don't care about our security and privacy? How much effort does it take to change your email or recover from identify theft?

In reaction, I closed all Best Buy accounts to remove my personal information from their systems. I will pay with cash with the understanding that all sales are final, just like a going-out-of-business sale.

I also called Chase Bank and had all email notifications and correspondence removed from my accounts. Now they get to postal mail or text me (i still have Internet access). I get to work with other members of my family who might be fooled by the coming email scams, especially in several months when they have forgotten about this. A very disappointing situation.
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post #23 of 109 Old 04-05-2011, 06:57 PM
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As long as I can continue to enjoy "tax free" shopping on "Big River" BB can hang it up. Even if they try to make online prices competitive they still won't earn my business unless they also lower prices enough to account for sales tax.
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post #24 of 109 Old 04-05-2011, 09:00 PM
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Quote:
Originally Posted by HiFiFun View Post

When they had the 15% restocking fee, I bought one Fuji camera who's pictures were very noisy. After that I never bought anything else that had a restocking fee.
But now they track consumers purchases across stores without their knowledge. Now we find our names and email address just got stolen. Do they don't care about our security and privacy? How much effort does it take to change your email or recover from identify theft?

In reaction, I closed all Best Buy accounts to remove my personal information from their systems. I will pay with cash with the understanding that all sales are final, just like a going-out-of-business sale.

I also called Chase Bank and had all email notifications and correspondence removed from my accounts. Now they get to postal mail or text me (i still have Internet access). I get to work with other members of my family who might be fooled by the coming email scams, especially in several months when they have forgotten about this. A very disappointing situation.

First, you can't be mad they had a restocking fee when you made the purchase fully aware of it. The restocking was generally waved if you used a reward zone card.

Second, did you really give them your real email address? If so, that is just foolish!! I give my junk mail account to almost all these online companies.

Third, your mad because they had your info stolen? Guess what, its happening to everyone. Even the Feds who have endless amounts of money to build secure servers. Is it Best Buys fault for entrusting Epsilon who was supposedly a secure, trust worthy company. Its the facts of life. Deal with it and protect yourself accordingly.
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post #25 of 109 Old 04-06-2011, 09:03 AM
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For one thing they have poor inventory.I needed a frig and they did not have any in stock except the big buck ones.I told the store manager he don`t stock anything because he was greedy and made me order it.He said sorry and offered me 10% off I said yea right.I went home and 2hrs later the phone rang and it was him he said $200 dollars and free delivery.what a joke.I told him I was going to Sears and keep your frig I need one now.And hung up on him
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post #26 of 109 Old 04-06-2011, 09:20 AM
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I've had it with Best Buy. Picked up a $300 Sony Reader there, less than 2 weeks later the screen went bad while I was paging through a book. Instead of simply processing an exchange for a defective product, they had their Geek Squad boob look it over, who apparently declared that I'd broken the device. Their manager boob agreed, and cited some "edge bleed" or some such nonsense. Insinuated that I was a liar, said they wouldn't take it back because Sony wouldn't reimburse them for it since it was broken.

Processed an online RMA with Sony, sent it in, new one will be here this week. Even talked to their repair center on the phone - they never even hinted that it might have been broken. The device was obviously defective. But at Best Buy, apparently you've got to somehow prove its defective to their awesome Geek Squad department; I'm sure the guy there was a Pearl eInk screen expert....

The only reason I bought the Reader at the Best Buy was specifically to accommodate a fast, local exchange in case I got a defective unit. Now that I realize that they can't even provide that basic service, why would I ever buy from them again? Thanks for nothing Best Buy, I'll just stick with Amazon, JR, B&H or other reputable online retailers. They actually accept defective returns and the process is certainly faster than waiting on a manufacturer warranty claim. Oh and they're cheaper.
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post #27 of 109 Old 04-06-2011, 10:14 AM
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Quote:
Originally Posted by rn225 View Post

For one thing they have poor inventory.I needed a frig and they did not have any in stock except the big buck ones.I told the store manager he don`t stock anything because he was greedy and made me order it.He said sorry and offered me 10% off I said yea right.I went home and 2hrs later the phone rang and it was him he said $200 dollars and free delivery.what a joke.I told him I was going to Sears and keep your frig I need one now.And hung up on him

Gotta laugh at this! You were mad because they only carried "big buck ones"? The manager offered a discount and even followed up and you got mad and hung up? Btw, i have never seen a best buy carry big buck fridges. Just run of the mill miidle of the road brands.
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post #28 of 109 Old 04-06-2011, 10:26 AM
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With the lack of a quality sales staff at every BB I've visited in the last couple years, they may as well go straight Web shopping ..

It's hard to even get a demo, and when you do, the 10 year old that waits on you wants to feed you misinformation half the time .. ask a real question and either get a blank stare or a made up line of BS ..

Oddball: Why don't you knock it off with them negative waves? Why don't you dig how beautiful it is out here? Why don't you say something righteous and hopeful for a change?

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post #29 of 109 Old 04-06-2011, 12:00 PM
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Quote:
Originally Posted by mgkdragn View Post

With the lack of a quality sales staff at every BB I've visited in the last couple years, they may as well go straight Web shopping ..

It's hard to even get a demo, and when you do, the 10 year old that waits on you wants to feed you misinformation half the time .. ask a real question and either get a blank stare or a made up line of BS ..

Agreed. However, i really do not care about their salesmen. Honestly, even the local high end stores are filled with average knowledge salesmen. Nothing compared to the wisdom around here. So when it comes down to it salesmen are just that salesmen.
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post #30 of 109 Old 04-07-2011, 12:13 AM
 
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Quote:
Originally Posted by A&M 350Z View Post
First, you can't be mad they had a restocking fee when you made the purchase fully aware of it. The restocking was generally waved if you used a reward zone card.

Second, did you really give them your real email address? If so, that is just foolish!! I give my junk mail account to almost all these online companies.

Third, your mad because they had your info stolen? Guess what, its happening to everyone. Even the Feds who have endless amounts of money to build secure servers. Is it Best Buys fault for entrusting Epsilon who was supposedly a secure, trust worthy company. Its the facts of life. Deal with it and protect yourself accordingly.
Excellent post!
The reporting of the incident has been tight-lipped by most Internet businesses. It did not make the headiness of many online news sources, like Google News. It certainly did on TV! Most ironic, as the bias in media "tables have turned"
"The Epsilon spokeswoman Jessica Simon refused to elaborate on the incident and said the company was cooperating with authorities conducting the investigation."

Its NOT just your email address, but ALSO your name. Now they know that I
1) Joe Citizen
2) have accounts at Chase, Best Buy, Target, Disney
3) and have my email address used to conduct financial business

Notably Amazon has come out clean. Impressive. Incidentally that is where i do most of my online shopping. They and AVS are about the only two sites left that I trust.

Now I'm going to create several disposable email accounts to isolate and categorize merchants by risk. I also have stopped leaving comments on news sites, as this is how they collect personal information.
I need a program to efficiently mange all these email addresses and automatically log me in, to check on them occasionally.
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