Best Buy announces STORE CLOSINGS ..

by sglmom Posted 2012/04/15 01:19:55

Related Topics: Fate, Amazon, Chicago, Free, Best Buy, Online, Internet, Financial, Minnesota, Issues, Arizona

52 votes
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	MY Thoughts ..	47 votes	90%
	OTHER Thoughts ..	5 votes	10%

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

+20

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☆The Rock☆ * AFCL* The Sher... 2012/04/15 01:22:51

MY Thoughts ..

+12
All due to OBAMA economic policies?
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Biki 2012/04/15 06:45:18

MY Thoughts ..

+4
I hate to see another retailer crashing and burning. It's so sad to drive around and see all these closed and empty stores.

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EdVenture to Biki 2012/04/15 17:18:10

+3
Hi Bikicat, they (Best Buy),among others, are a big part of the reason. Consider this, Is it normal for four (4), super drugstores, home goods/supplies/ Supermarkets/ lumberyards/ Discount Stores on opposite sides of the street or intersection? In the corporate and real estate industry this is referred to as a "range war" between competing companies with the ultimate goal of putting each other out of business leaving one to prevail and garner all the profit including that profit of the local and neighborhood business by forced attrition. Now that wall street has sucked all the money out of our pockets, they cant support 80,000sq ft buildings nor will the economy support four vendors on each block. Just the tip of the iceburg, for your consideration. Read some of my other comments on this thread. Regards, Ed

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Andy Fl... to EdVenture 2012/04/15 21:19:47

+3
I miss the days when I could go to a lumber yard and get lumber. There are so many things the professional could get when Lowe's and Home Depot opened up and now they no longer stock. They are catering more and more to the housewife in the products they stock. Most lighting fixtures that require a ballast these days are coming with what they call smart ballasts that work on either 120V or 277V, but they are still selling strictly 120V fixtures. Same with exterior metal halide and high pressure sodium fixtures. These are usually "multi-tap" working with 120V,208V,240V,277V, and 480V, but now you can only get strictly 120V at their stores. They used to carry it all but now that they have shut down the competition they are raising prices and changing products and thus their market. They didn't start out selling blenders and toasters. And Walmart is having trouble as well I'm guessing. Take a look around the next time you go to a super center and a lot of what you used to see in the aisle displays is no longer available. They have reduced their food brands buy a third, but they can control the market because they driven the competition out of business.

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EdVenture to Andy Fl... 2012/04/15 22:10:13

+3
Your correct, Home Depot, is modeled after the contractor and do-it-yourselfer, Lowes has targeted the housewives and more of a showroom environment. Unfortunately of the contractors the consumers take out their frustrations or the cost of specific items (special order), on you and often think they could have done better. I could see this coming for years, remember back as u say the lumber yard, do you remember the local pharmacy, the furniture store, the hardware store, the manageable supermarket and so on. As soon as the competition is gone and the choice is gone the quality and options will dissapear for profit margin and they prices will skyrocket! Good luck to you Andy, I hope people make the right decision at the ballot box! Regards, Ed

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Andy Fl... to EdVenture 2012/04/15 22:38:44

+2
Unfortunately my first choice missed his window by not running in 08.

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EdVenture to Andy Fl... 2012/04/15 22:52:14

+3
The good news is in a few months you'll have a shot at it again. Good luck

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Andy Fl... to EdVenture 2012/04/15 23:35:35

+3
Since we don't have write in votes in Oklahoma I will have to vote for Romney. I hate being put in that position, but it is what it is. For this reason I'm thinking when I re-register I will do so as GOP rather than independent, At least that way I will have a say in who the GOP runs. I have no allusions as to the viability of a third party at this time.

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EdVenture to Andy Fl... 2012/04/15 23:43:55

+2
In my mind the most important thing is not wasting your right to vote. When enough people do we get what we deserve and maybe other don't. Not that it matters, I'm moving in a different direction, I'm from MA.

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Andy Fl... to EdVenture 2012/04/16 06:09:26

+1
Please explain Teddy Kenedy to me then lol.

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EdVenture to Andy Fl... 2012/04/16 15:01:54

+2
Not sure what your asking? LOL

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Andy Fl... to EdVenture 2012/04/16 15:19:09

+1
How you all kept re-electing him? I watched many a Senate hearing and I can't recall a single thing he said that was on topic, let alone that made sense. I don't care that he was a liberal so much as that he just seemed like an idiot.

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EdVenture to Andy Fl... 2012/04/16 17:08:20

+2
I can't help that. Maybe because he was able to unify?

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Andy Fl... to EdVenture 2012/04/16 17:10:38

+2
I was just poking a little fun, actually. Didn't mean anything by it.

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Biki to EdVenture 2012/04/16 19:39:56

+4
you are very correct. They have created the problem and now must pay the pipers. But it still makes me sad to see all the empty stores. I can't help but think that they were all created for someone's vision and hope. And then they are dashed, by their own practices and policies.

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EdVenture to Biki 2012/04/16 19:49:26

+2
I agree it reaches even further than that, the develpers and investors providing the space are stuck without the income and in some cases the ability to pay for a building that is not in demand. This was a vision the result of unchecked greed. I think of it this way, If I went to the bank for a loan to build a ten story barber shop on the north pole and they said yes, close them!

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Biki to EdVenture 2012/04/16 20:42:31

+2
hahahaha! I lived at the North Pole (Alaska) and I can't say I saw any 10 storey barber shops there!! LOL!!!
The banks did make poor choices. I thought those types of buildings weren't built until the corporation did survey's and such to see if there is a base of consumers to warrent the shop??

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EdVenture to Biki 2012/04/16 21:13:45

+2
That is the normal process however what happened these companies made moves to establish themselves and brand thing the competitors would not follow, makes sense right, you dont need a super store on each corner selling the same thing. What happened instead was a range war over locations that often redundent and the mind set was well we are targeting the woman, were targeting the man cleaner store etc. or whatever. driven by location. This thinking triggered a range war in the industry using shareholders money. What they lost sight of was how the economy fluctuates and there was not enough demand people and spending to support that many stores particularly in a down market. Then whether arrogance, salvation, etc., they thought they could outlast and prevail by price break etc. Unfortunately the economy didn't bounce back, that banks became underwater with their loans, the ones they thought were aaa the best and now we have all this debt and staticity. Short story. regards

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EdVenture to Biki 2012/04/16 21:21:28

+2
I should add in all do fairness to the stores/investors the banks were able to sell the loans, easily, and more money poured in so they were focused on getting money out quickly so they wouldn't miss the boat. Now there in a sinking lets say Super Tanker. Very irresponsible all around.

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Biki to EdVenture 2012/04/17 19:10:26

+2
hummm, for some sodahead reason, I am unable to rave your posts. Sorry about that, I tried. =-) Good comments!! Good food for thought. I always thought it was very reckless when I saw all this building up happening. Such a sad state of affairs all the way around. =-(

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S.Lewis 2012/04/15 05:31:10

MY Thoughts ..

+3
I can't wait for the going out of business sale. :)

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EdVenture to S.Lewis 2012/04/15 18:26:31

+2
My comment is not meant as a critique but a consideration. That is what I'd expect to hear from Romn....., consider how many people will loose ther jobs. The impact of a failed "anchor" tenant in a plaza affects all the other businesses located there as well including their staffing and employees as well, that could be you, your brother or parents.

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banzaibuckaroo 2012/04/15 05:30:07

MY Thoughts ..

+3
Best buy is too expensive, but they do price match, but they lack the selection of of competitors like Fry's. That's why they closed stores in Arizona.

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Simmering Frog 2012/04/15 05:18:15

MY Thoughts ..

+6
I have a love/hate relationship with Best Buy. The store really didn't care whether I was happy with my tv wall mount installation. Instead they were more concerned about getting money to correct the problem that was created during the first installation. Kind of disappointing.

Someone once called Best Buy "Amazon's Show Room." The title fits.

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Jacksane 2012/04/15 05:18:07

MY Thoughts ..

+2
Having worked for Best Buy, I can say that they're business models just weren't in touch with their customers. By the time I left the company, we had one cashier working at a time, who also doubled as a Customer Service representitive. That cashier had to offer magazine subscriptions, reward zone cards, a credit card, and protection plans to each and every customer. The lines got to be ridiculous, but business never really picked up because it was slow and inconvenient for customers to deal with. Best Buy tried several innovations to keep up with their competition, such as offering Buy Back programs and Used Games, but in the end they couldn't do anything better than Gamestop or Fry's. I left the company after selling one credit card per shift became mandator because I got sick of listening to customers tell me how they already had too many credit cards and too much debt and then relaying this to my supervisors and having them blame me. Honestly, I knew Best Buy wouldn't last very long unless they did a 180 degree turn in their business plans.

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Biki to Jacksane 2012/04/15 06:37:34

+3
WOW! Thanks for the inside info. Always kind of interesting to hear from a person that worked for a business that is now in trouble. Sometimes you don't get to hear the "real story" behind the press release story.

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LOU 2012/04/15 05:08:43

MY Thoughts ..

+1
Who cares!

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mwg0735 2012/04/15 05:00:15
Lisa 2012/04/15 04:43:12

MY Thoughts ..

+2
Everything is being bought on the internet! They should charge people to come in the store if they want to go in there to comparison shop and then go find the lowest price in the internet!

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Flamingo Flame Gem *AFCL* 2012/04/15 04:20:11

OTHER Thoughts ..

+2
The stores closing are those with poor performing sales figures in the last serveral years. Closing 50 stores is a small amount and many of the workers are being transfered to other stores. Closing the 50 and opening 100 smaller mobile Best Buy stores is a smart move.

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Flaming... to Flaming... 2012/04/15 04:25:11

+3
Oh by the way you can order good deals on line at Best Buys website. Including flat screen tv's i have 2 of them.

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mblack to Flaming... 2012/04/15 09:21:48

+2
I used to shop best buy all the time until i realized their sales people have no product knowledge what so ever. They are so focused with the cross sale rather than investing time in educating their employees on the products they sell.

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Max to Flaming... 2012/04/15 20:25:07

+3
I had commented that I thought this had to do with "youknowwhocare" looming on the horizon. That shows how little I know about business. There was also a reply on my comment that educated me as well as you did. But yours was short and, of course, sweet.

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Flaming... to Max 2012/04/15 21:27:35

+2

Thank you mi amor

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beach bum 2012/04/15 04:18:31

MY Thoughts ..

+1
maybe they should have let walmart buy them out :-0

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@TheMissesHelp <-Follow/Twe... 2012/04/15 04:12:41

MY Thoughts ..

+1
Yup, great recovery...

MEANWHILE, GSA cought in $80k scandal while secret service caught in prostitution scandal! http://www.washingtonpost.com...

Tweet me @TheMissesHelp

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TruBluTopaz 2012/04/15 04:06:05

MY Thoughts ..

+4
Higher taxes in union heavy states result in job losses. Who knew?

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reaper 2012/04/15 03:44:15

MY Thoughts ..

+2
well with the info I have on the CEO is he was having an affair. the store closing is interesting.

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FairLady 2012/04/15 03:28:59

MY Thoughts ..

+3
I am not a frequenter at B> but my family bought a good stuff over there. I don't know if BB in my town will be closed. Hope not the one they go to shop.

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Wanda5245 - Citizen Activis... 2012/04/15 03:10:27

MY Thoughts ..

+4
Circuit City destroyed itself when the idiots in charge changed from commission sales to non-commission sales. Why should some sales people work hard when the lazy ones are paid the same wage as the hard working ones.

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Lisa to Wanda52... 2012/04/15 04:44:36

+3
Sounds like Socialism!

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