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Best Buy announces STORE CLOSINGS ..

sglmom 2012/04/15 01:19:55
MY Thoughts ..
OTHER Thoughts ..
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You'd think with the demise of Circuit City in 2009
(the biggest competitor to Best Buy)

that this Chain business .. would be experiencing a boom in their business base ..

Let's now fast forward to 2012 ..
And we find Best Buy in the same crunch that encompassed their competition ..
(their business base didn't expand .. in fact .. it stagnated and .. in a lot of ways, shrank as new competitors showed up on the scene)

Amazon, internet sales sites, Discounters all have filled the void ..
(and with the resulting competition .. expensive items that were the base of Best Buy have found themselves sitting on the shelves)

Best Buy has announced the following cuts ..
-- 400 Corporate Jobs
-- Closure of 50 stores this year
(already closed are stores in Missouri and Arizona)
Amongst the closures include California (7), Illinois (6, Chicago-Area), Minnesota (6)

The CEO of Best Buy (Brian Dunn) resigned after the Corporate Board started investigating his 'personal conduct'
(hmm ... 'personal conduct' .. is a cover term for so many potential charges)
Let's look at a quote from the articles here ..
""Certain issues were brought to the board's attention regarding Mr. Dunn's personal conduct, unrelated to the company's operations or financial controls, and an audit committee investigation was initiated," the company said in a statement. "Prior to the completion of the investigation, Mr. Dunn chose to resign.""
http://www.wral.com/business/story/10966762/
http://online.wsj.com/article/SB10001424052702303815404577335...

With even the Business news sites seeing the writing on the walls ...
(Best Buy is headed on a slide out of Business)
http://www.forbes.com/sites/larrydownes/2012/01/02/why-best-b...
http://www.legitreviews.com/news/12124/

And consumers only using Best Buy as a 'Walk Through' .. to look at the offerings then to go home and start researching and negotiating/looking for the TRUE /best price/ (if they do decide to purchase at this time)

Link to the articles
http://news.yahoo.com/best-buy-announces-locations-store-clos...
http://abcnews.go.com/Business/wireStory/best-buy-announces-l...
http://www.dallasnews.com/incoming/20120414-best-buy-announce...
http://abcnews.go.com/blogs/business/2012/04/best-buy-release...



A CEO Resignation, Corporate Staffing Cuts, Store Closures ..
A FAMILIAR pattern indeed ..
One that trends shows preceeds a collapse and closure/failure ..
Of many a BIG Retailer over the past few years ..

What do you think is the FATE of Best Buy ..


Please Feel free to add your thoughts below

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  • bettyboop 2012/04/19 13:52:41
    MY Thoughts ..
    bettyboop
    +5
    Ah yes, internet shopping has become very popular. My hubby loves ebay and craigslist. I frequent Amazon. We live out in the country. Many times these sites offer free shipping and so it is easier and just as cheap or cheaper to shop online. I do not think Best Buy will go out of business, but if they wish to keep the doors open they need to lower their prices.
  • sjalan 2012/04/16 05:05:30
    MY Thoughts ..
    sjalan
    +5
    They really need to hire someone like Lewis Kornfeld past CEO of Radio Shack who took it from a 1000 stores to 7500 world wide inside of 10 years and from a $80 million dollar company to a multi Billion dollar company in that time as well.
  • chgo 2012/04/15 20:26:55
    MY Thoughts ..
    chgo
    +5
    That's they're own fault. The same happened with the greedy idiots managing Sears.
  • EdVenture chgo 2012/04/16 00:00:35
    EdVenture
    +3
    In Sears defense, they've invented the concept over 100 years ago. Sears may fall prey to the boondoggle created by the same forces brought upon the over expansion of the new big boxes. Sears played a major role in helping to develop middle america via their catalogue division. Ask the farmers and settlers. You could litterally buy farm equipment and even an entire house, many which survived to this day. This offered products that were unconditionally garanteed (replacement if it breaks) to families and businesses in rural america that had no other option. Just a fact. I repay them by being a loyal customer when possible. regards ed
  • chgo EdVenture 2012/04/16 00:19:51 (edited)
    chgo
    +5
    I'm no loyal customer to Sears. and the imaginary Sears you're trying to depict is devoid of sense nor reality.

    The reason why Sears is closing a lot of stores is because of the fact ,1, quality of products have been decreasing rapidly at Sear for years now

    2, they stopped honoring Craftsman's lifetime guarantee.

    3. their management being directed by a hedge fund. They purchased their stock back. Totally stupid.This sounds eerily like what happened with Borders.

    4, after IL gave them tax breaks to 'stay', they plan on moving their headquarters out of IL, losing ~7K jobs


    5. the customer service.

    6. The only reason they didn't go bankrupt 20 years ago is because old people shop there. No joke, 50 year olds have a mysterious allegiance to Sears where price etc. doesn't matter to them, they shop there anyway .As soon as all the dedicated old people die off, Sears will too.

    7.merchandise would be not on the shelf, and/or prices too high, and/or staff too well hidden

    8. etc,
  • EdVenture chgo 2012/04/16 00:46:18
    EdVenture
    +4
    Don't dissagree, their problems are systemic and stem from a changing of the guard some years ago and then the hedge fund crooks. Sad but true. My loyalty is an effort to try and save some jobs primarily of people that invested years of their working careers there. Didn't mean to set u off, and sorry about those circumstances, its not unique to IL, its everywhere. regards, Ed
  • chgo EdVenture 2012/04/16 01:17:06
    chgo
    +3
    Nobody set me off. fed up with peoples coddling Wall Street.
  • EdVenture chgo 2012/04/16 01:54:45
    EdVenture
    +3
    Can understand that. they've been a venting target.
  • Næthan Æterna 2012/04/15 20:25:57
    MY Thoughts ..
    Næthan Æterna
    +4
    This is going to sound so bad...

    I have a Laptop that I pay monthly payments on with an In-Store Financing HSBC card. If they go bankrupt, does that mean I no longer owe them money? What will happen to my bill?
  • Andy Fl... Næthan ... 2012/04/15 20:38:14
    Andy Fletcher
    +3
    Is it the reward zone card issued through HSBC? If so it's likely a Visa card and good anywhere, but either way you will still be held to the debt.
  • Næthan ... Andy Fl... 2012/04/15 21:09:20
    Næthan Æterna
    +3
    It only works to purchase stuff in Best Buy. It doesn't have a Visa, MC, or Amex symbol or name anywhere on it.
  • Andy Fl... Næthan ... 2012/04/15 21:43:07
    Andy Fletcher
    +1
    well, you mention HSBC so they are backing it, and you will still be responsible. Best Buy isn't closing down or going bankrupt anyway, they are only closing down unprofitable stores.
  • Næthan ... Andy Fl... 2012/04/15 23:52:05
    Næthan Æterna
    +3
    Drat. lol. It would be nice to not have to pay my bills, but I am one of the responsible ones and I do every month without fail. I went through a company going bankrupt and closing un-profitable stores and all debts were forgiven when we closed the branch we were located at. That was a movie rental place though, which is quite different.
  • EdVenture Andy Fl... 2012/04/16 00:06:02
    EdVenture
    +3
    I would mention that in the case of Comp Usa I had credits and garantees and when the store closed down they advised me that they would honor them but I would have to go to another store that in my case, happened to be in another state.
  • Sawdust_128 2012/04/15 19:07:54
    MY Thoughts ..
    Sawdust_128
    +3
    Hope and Change in action!
  • PBUTTERBOY77 2012/04/15 16:21:51
    MY Thoughts ..
    PBUTTERBOY77
    +5
    GREED DID THEM IN - AND WILL DO IN A LOT MORE.
  • EMT 2012/04/15 15:59:44
    MY Thoughts ..
    EMT
    +3
    Seems Best Buy is quite expensive, yet the quality doesn't stand up to the hype. Why pay so much more for something that holds as much risk as breaking than if you were to buy it for less from WalMart. Circuit City was a competition and once they closed down Best Buy raised prices as if they were the only store around who sells electronics, forgetting about other retail stores like Target and Walmart who sell the same exact things much cheaper.
  • Max 2012/04/15 15:58:52
    MY Thoughts ..
    Max
    +3
    They can't hang with the competition. It seems unusual though considering, they are the "best buy". A customer should be able to find the lowest prices anywhere and then take that price to Best Buy and they will sell it to you at that price, if not lower.

    There must be another reason why they're going under, besides the reasons you listed. hmm… Oh, yeah, 0bumacare is looming.
  • EdVenture Max 2012/04/15 20:06:09
    EdVenture
    +4
    Hi max, if you are interested this is my perspective based upon many years of experience. Their undoing is a result of their own doing from a corporate stradegy position. The "range war" that we have all witnessed for ten years has resulted in over-expansion of many companies. This basically involved two things that fueled this situation under normal economic principals. By referring to the range war, Several large concerns including the banking indutry provided money, your deposits (savings accounts and pension funds), in the banks ahd investment vehicles to the firms to expand to the extent that we see three or four of the same businesses within a stones throw of each other. It doesn't take a brain surgeon to figure that an area could not support all these competing stores especially when the economy is strained which it does every few years. This firm expansion approach started with the idea that they could garner the largest market share of business in an area to lets locate there first, our competitors are unlikely to follow, and then to we can out-last their sustainability. All with no regard to the risk to its shareholders and consumers. Now in the absense of the sales volumes they were adamant or convinced they could achieve, they can't afford the rent or cost of condu...
    Hi max, if you are interested this is my perspective based upon many years of experience. Their undoing is a result of their own doing from a corporate stradegy position. The "range war" that we have all witnessed for ten years has resulted in over-expansion of many companies. This basically involved two things that fueled this situation under normal economic principals. By referring to the range war, Several large concerns including the banking indutry provided money, your deposits (savings accounts and pension funds), in the banks ahd investment vehicles to the firms to expand to the extent that we see three or four of the same businesses within a stones throw of each other. It doesn't take a brain surgeon to figure that an area could not support all these competing stores especially when the economy is strained which it does every few years. This firm expansion approach started with the idea that they could garner the largest market share of business in an area to lets locate there first, our competitors are unlikely to follow, and then to we can out-last their sustainability. All with no regard to the risk to its shareholders and consumers. Now in the absense of the sales volumes they were adamant or convinced they could achieve, they can't afford the rent or cost of conducting business. A problem I maintain is self inflicted. This problem is now systemic in all the big boxes including the super super markets. The sad thing to me is we have lost our local mama papa and small business as a result of their predatory marketing techniques, mainly pricing which often was below wholesale. Soon you might see the surviving firms like Best Buy re-branding themselves "Best Buy...Your Only Choice" and having the last laugh! Its not about customer service its about that $5.00 in your pocket and absent that how much you can borrow. Three or Four years ago Walmarts CFO revealed that their customer, that normally had $20 in their pocket now use credit card and in fact 80% of all there sales are made that way. And that demand for poducts had reversed from dry goods and luxury items to food, now if i'm correct around 75 or 80% of their sales. In closing, this has nothing to do with Obama but you are entitled to your own opinion.
    (more)
  • Andy Fl... Max 2012/04/15 20:42:42
    Andy Fletcher
    +3
    They aren't going under at this point. They over expanded and the market has shrunk so they are making the smart move and closing stores that aren't profitable.
  • Max Andy Fl... 2012/04/15 21:14:09
    Max
    +3
    Thanks, you are the third one to educate me about that.
  • Mr. Smith 2012/04/15 14:48:44
    MY Thoughts ..
    Mr. Smith
    +6
    These big chains all lost their way when they decided to become bankers instead of providing quality products and extraordinary customer service. Best Buy makes more money off their finance/credit card division than they do selling merchandise. If you shop at Best Buy, notice the next time you check out whether the cashier asks you if you want to sign up for the Best Buy credit card. It's part of their training, they have to hit a certain daily/weekly/monthly quota.......they will get fired if they don't sign up enough people into their financing program. That's a terrible way to operate a business! They forgot their core competence was selling goods and services, not selling credit cards.
  • chgo Mr. Smith 2012/04/15 20:44:14
    chgo
    +3
    No, smarty pants. it's because of that Obummer!!
  • Mr. Smith chgo 2012/04/16 01:04:25
    Mr. Smith
    +2
    I don't call him by those cute names, but you're right, he hasn't helped the situation.
  • Pedro Doller ~Inc. 2012/04/15 14:37:21
    MY Thoughts ..
    Pedro Doller ~Inc.
    +3
    Best Buy had the world by the tail and blew it. They only have themselves to blame. The service was poor, the staff was uneducated, often rude and not helpful, and too top it off they hung their hat on that worthless Geek Squad. I've never had so much bad advice in my life. Buying a new computer was their best solution. Luckily I travel a lot and can get problems fixed abroad for very, very cheap.

    Also their product line was strictly the bottom end from the various manufacturers.

    Bye Bye Best Buy!
  • EdVenture Pedro D... 2012/04/15 15:21:08
    EdVenture
    +3
    They had us by the BALLS and were the catalyst among others to over-saturate this nation with chinese (not made in America), and inferior products in part, leading to the demise of small business and loss of manufacturing jobs in fact, the loss of our industrial base!
  • Pedro D... EdVenture 2012/04/15 15:33:55
    Pedro Doller ~Inc.
    +3
    Don't forget Boeing either. They gave China the guidance system for their ICBMs and also helped them launch a space program. As for Best Buy, they had an almost monopoly and didn't take care of customers. Most electronics were already made in Asia when they came along. I have an old 1980 HP calculator and all the parts were made in Singapore.
  • EdVenture Pedro D... 2012/04/15 16:48:09
    EdVenture
    +3
    Hi Pedro, they didn't give it to them they were allowed to sell it to them as a part of their bailout package and don't forget if you are aware, Ronal Reagan set the precedent for this option when he approved the sale of Bethlehem Steel to competing countries, I think at that time it was the Chinese/others, among other things. As far as taking care of its customers, that has not been the case since the previously operating local small businesses that set that standard, were forced into failure via pricing wars and consumer greed (absorbed). This was easy for publicly traded corporate and financils interests because in essence the margins diminished to the point businesses could not afford their rents, purchase in volume and deferr or sustain their losses. This cost many peoples jobs, livelyhoods and destroyed many careers and in fact, in many cases on a broader note it destroyed local economies and sub-economies in more economically sensitive and challenged areas. In effect igniteing what we know as the dommino principal. How did this happen?, simple, Wall street, banking and special interests were allowed and authorized via lobbied legislation to hi-jack our salaries, pensions, rights and consumer protection on the grounds that "they know better and will do the right thing" i...
    Hi Pedro, they didn't give it to them they were allowed to sell it to them as a part of their bailout package and don't forget if you are aware, Ronal Reagan set the precedent for this option when he approved the sale of Bethlehem Steel to competing countries, I think at that time it was the Chinese/others, among other things. As far as taking care of its customers, that has not been the case since the previously operating local small businesses that set that standard, were forced into failure via pricing wars and consumer greed (absorbed). This was easy for publicly traded corporate and financils interests because in essence the margins diminished to the point businesses could not afford their rents, purchase in volume and deferr or sustain their losses. This cost many peoples jobs, livelyhoods and destroyed many careers and in fact, in many cases on a broader note it destroyed local economies and sub-economies in more economically sensitive and challenged areas. In effect igniteing what we know as the dommino principal. How did this happen?, simple, Wall street, banking and special interests were allowed and authorized via lobbied legislation to hi-jack our salaries, pensions, rights and consumer protection on the grounds that "they know better and will do the right thing" if you remove these regulations. I am frustrated to think, given Americas consumption and wealth we allowed these industries to be exploited abroad, and we financed it. Could go on but wanted to share my perspective with you. Regards Ed
    (more)
  • Pedro D... EdVenture 2012/04/15 17:22:02
    Pedro Doller ~Inc.
    +3
    It's a long list for sure. Been going on for at least 50 years. Before we built China, we built Japan. Now Japan has moved most of it's stuff to China (for as long as it's recession has lasted, about 10 years). Now China is getting too pricey and many are moving to Viet Nam.
  • EdVenture Pedro D... 2012/04/15 18:14:50
    EdVenture
    +3
    Hi Pedro, We did participate in the reconstruction of several wartime conflicts excepting Viet Nam. Remember though, our America/Enland and others best interest were central to that, not to make them more prosperous just to enable them to pick up the pieces and maintain their independence. That is to say preventing Russia from moving in and dominating China, China from moving in and dominating Japan and South Korea from invasion from the North. Chinas challenges, inflation and economic issues have been exasperated by the influx of foreign business concerns targeting the 150M with income to spare and 850M people tht will come on board as they develop. Not to many years ago I spent some time in China and was amazed to learn that in Hong Kong alone, one of many, was accomodating an estimated 750 super freighters a day. I saw the stacking lanes in the harbor leading out to sea myself. This provided me with a better perspective and the magnitude of their economy and growth. Its recession is somewhat similar in character to ours in that, demand for their product is down, loan failures are high because sales are down and corps, tenants and real estate developers cannot pay the rents or loans, not to mention the unemployment issues.
  • Andy Fletcher 2012/04/15 14:31:13
    MY Thoughts ..
    Andy Fletcher
    +2
    We have around 3 million people here in Oklahoma, a little over a million of them around OKC including Moore,Norman, and Edmond. We have 8 stores in the same area, some of them about 5 minutes away from each other. I read the list a few weeks ago and I think these stores are safe, but it is only for now. What I'm saying is though, I'm sure no small part of these closings can also be attributed to over expansion. That was also one of the problems for Circuit City.
  • Næthan ... Andy Fl... 2012/04/15 20:24:34
    Næthan Æterna
    +3
    Same with Starbucks, they closed stores and made a come-back. It will be interesting to see which route Best Buy takes.
  • hari 2012/04/15 13:44:17
    MY Thoughts ..
    hari
    +3
    stop importing and selling cheap stuff of China and Taiwan that sucks and motivate buying stuff of US only
  • EdVenture hari 2012/04/15 15:31:03
    EdVenture
    +4
    Hi Hari, to late now, we have sold our technology and exported our mfg. base abroad and now there is an exodus of the technological skills and minds that sell their services to this industry. Our universities are not turning out enough foreign students to fullfil foreign demand. Thank our duly bought and paid for elected representatives in congress over the past 15 years.
  • hari EdVenture 2012/04/15 15:34:50
    hari
    +2
    YES, but let us start banning all fu***g Chinese stuff ......Charity start from the home .. if every one tries ? guess we may reach our goal
  • dubbie 2012/04/15 12:47:58
    MY Thoughts ..
    dubbie
    +3
    Just a growing trend of things to come under the present regime, Survival in a disastrous economy will take its toll on many companies when the customers have to pinch pennies just to make it day by day because of the deliberate actions to minimize the wealth of this country by communist organization
  • EdVenture dubbie 2012/04/15 15:42:20
    EdVenture
    +2
    Excuse me, try and demonstrate that u posses some gray matter. This phenomena began with Regan, through Clinton and then under Bush to what it now is. A chronilogical list record of the legislation and their sponsers and lobbyists allowing this to happen would reveal otherwise. We must take the blame for letting that happen, why do you think the predatory corporation and special interests are (INVESTING) so much cash, and now, secretly without disclosure, in a specific party? Connect the dots dubbie.
  • K. Katt 2012/04/15 10:15:35
    OTHER Thoughts ..
    K. Katt
    +3
    I remember Best Buy and Circuit City when I lived on the mainland. There are none of them here.
  • mblack 2012/04/15 08:59:05 (edited)
    MY Thoughts ..
    mblack
    +6
    Why pay higher prices and deal with people that have no product knowledge?

    Folks, this is capitalism at work. Change your business model or begin shrinking.
  • Jim 2012/04/15 08:25:37
    MY Thoughts ..
    Jim
    +6
    All brought on by their own method of operating, Attitudes of some sales people, slow correcting an inferior product when returned, lack of kowledge of items and how they function by sales staff, can't find anyone to offer assistance when needed. Walking into my local Best Buy reminds me of Circuit City as they both seem to be out of touch with customers concerns.

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