Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Best Buy: Where We’d Back Up the Truck

IMG Auteur
 
 
Published : November 28th, 2012
603 words - Reading time : 1 - 2 minutes
( 15 votes, 1.5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

 

 

 

 

Let us say a prayer for Best Buy as the company attempts a daring overhaul. There is surprisingly good news on this front, and we’ll get to it in a moment. Suffice it to say, the stakes are extremely high, since failure could mean that ten years from now, quite a few of the things Americans buy other than food will necessarily come from Walmart, Costco and Amazon. For USA shoppers used to limitless variety, this would be Bedford Falls without George Bailey. Bleak as that may sound, it hardly exaggerates the possible endgame of a trend that has seen vacated storefronts spread like a pox across America. Big-box operators in particular have been failing at an alarming rate, leaving gaping holes in strip malls and once-thriving city streets. The Great Indoors, Hollywood Video, Linens ’n Things, K.B. Toys, Borders, Montgomery Ward and Woolworth’s were all household names that have vanished from the retail landscape if not yet from memory.




Competition in the consumer electronics business in particular has been brutal, laying waste not only to CompUSA and Circuit City in recent years, but, before them, to Tweeter, Federated, The Wiz, Crazy Eddie, Incredible Universe, Musicland, The Good Guys and Computer City. This is capitalism’s “creative destruction” at its most devastating, and it could continue to ravage the retail scene for years to come. Just ponder the list of big-box survivors whose days could be numbered: Sears, Barnes & Noble, Bed Bath & Beyond, JC Penney, Macy’s, Nordstrom, Office Depot, Office Max, Staples, Toys R Us, Blockbuster Video. Sears, which has been dying since the 1980s, few will miss. But if two far better emporiums, Macy’s and Nordstrom, fail, we’ll all be buying pants the same way we now buy shirts: “One-size-fits-all-orangutans”.


The Good News…


Now for the good news: Best Buy’s future has been entrusted to a guy with some very good ideas and a solid game plan. Stephen Gillett, 36, came to the company from Starbucks, where as chief information officer he helped pull the ubiquitous coffeehouses out of a steep dive. At Best Buy, his goal is to build on the firm’s main strength: showrooms that are everywhere. Nor is their drawing power in doubt. With $50 billion in revenues last year, Best Buy sold more PCs, cameras and phones than any other consumer electronics vendor in the world, including Walmart ($35 billion) and Amazon ($14 billion).


So how does Best Buy get customers to buy the stuff they’ve come to the showrooms to examine? Gillett’s plan is simple: put experts on the sales floor who can provide in-depth answers to shopper’s questions; then, do your best to match or beat the competition’s lowest price, online or off. Concerning the sales-force upgrade, most of Best Buy’s floor personnel are generalists with just a smattering of knowledge about the various products they sell. Under Gillet’s regime, they’d be more like the whizzes at Apple stores, able to provide detailed information and a level of service that has been sorely lacking at Best Buy stores since the chain was founded in 1981.


A Jump on AMZN, eBay


Keep in mind that the company already has a formidable presence online, operating the 11th largest ecommerce site and growing sales revenues, currently around $3 billion, by more than 15% per quarter. Ecommerce could account for fully half of Best Buy’s revenues within three years. Meanwhile, shipments to the company’s 1,400 stores are already quick and reliable, creating a ready-made distribution network — like the ones Amazon and eBay are building — for online shoppers who want to pick up their merchandise the same day.



 

 

<< Previous article
Rate : Average note :1.5 (15 votes)
>> Next article
Rick Ackerman is the editor of Rick’s Picks, a daily trading newsletter and intraday advisory packed with detailed strategies, fresh ideas and plain old horse sense.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Absent Without Leave
21 JunS W.
Bail ins for sure. It was agreed at the G20 in Brisbane. You are not really a share holder. You are an unsecured creditor to the bank a...
Absent Without Leave
19 JunJ.3
Perhaps all the international shenanigans are the smoke and mirrors intended to obfuscate the view of the looming financial catastrophe. When the ...
Gold Price Cuts Post-UK Election Loss, ETF Investors Sell, Nasdaq D...
16 JunSam Maher
"the SPDR Gold Trust (NYSEArca:GLD) – saw its sharpest liquidation since March in the week-ending Thursday, with shareholders cutting the fund's si...
Things To Come
13 Junkevthorne3
If voting for 'parties' actually made a difference they would have not legalised it. Since 1914, it's been the supply of currency that has governed...
Things To Come
12 Jun Roygbiv0
And JHK ruined your life because he then voted for Obamba ? For Jim C.
Things To Come
12 JunJim C.-1
Surely Kunstler cannot be ignorant of economics, of the direct correlation between the production of wealth and Capitalism, and the subsequent crea...
The Escape from Collectivism - Jeff Thomas
10 Junsam_site-2
As I said before, collectivism depends on handicapping the public to create a nation of clinging, helpless, entitled patients and is a top priority...
The Government Is Desperate To Re-Stimulate Housing Sales - Dave Kr...
09 Junmlyons1
While they are picturesque, the Canadian Federal Parliament buildings (shown in the picture) have little connection with an article related to the ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS