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Best Buy closing stores

Cygnus
03-29-2012, 09:38 AM
I knew this was coming...

http://news.cnet.com/8301-1001_3-57406388-92/best-buy-feels-amazon-squeeze-to-close-50-big-box-stores/?tag=mncol;cnetRiver
* It will cut $800 million in costs by fiscal 2015.
* Close 50 big-box stores this fiscal year.
* Open 100 Best Buy Mobile and small stores this year.
* Boost online revenue by 15 percent.
* And Best Buy will change its employee compensation model to revolve around customer service and business goals.

ack_bak
03-29-2012, 10:26 AM
I knew this was coming...

http://news.cnet.com/8301-1001_3-57406388-92/best-buy-feels-amazon-squeeze-to-close-50-big-box-stores/?tag=mncol;cnetRiver

And Best Buy will change its employee compensation model to revolve around customer service and business goals.

I think that is probably a smart move. But I still think it is too little too late for Best Buy in many ways. Their website still sucks and I still don't really see them competing with Amazon, Costco, Sams Club, for my larger ticket items.

GizmoDVD
03-29-2012, 10:30 AM
But Blu-ray was up 20% YoY?!?

mikemorel
03-29-2012, 10:42 AM
U.S. Flat Panel TV Shipments To Fall, First Time Ever (http://www.forbes.com/sites/briancaulfield/2012/03/27/u-s-flat-panel-tv-shipments-fall-first-time-ever/)

http://blogs-images.forbes.com/briancaulfield/files/2012/03/flatpanel.jpg

teddymines
03-29-2012, 10:51 AM
When you build your business model around commission-based sales drones pimping expensive cables and misleading people into thinking LED is fundamentally different from LCD ("The "E" is two more than the "C!"), you kind of have to expect word will get around and that smaller players like Monoprice might offer cables that perform every bit as well.

ack_bak
03-29-2012, 11:04 AM
It is a long read, but a very good one:
http://money.msn.com/investing/why-best-buy-is-destined-to-fail-forbes.aspx

dsskid
03-29-2012, 11:46 AM
Unfortunately, more and more consumers have been going to Best Buy to view the product, and then ultimately making their purchases online.

I've always tried to make my purchases at a B&M store if they are priced close enough to online retailers, since they do provide the ability to actually view/touch the product to see how it performs, and their overhead expense has to account for something.

Sadly, once they close, there will be one less venue to actually see what you buy before buying the product.

dsskid
03-29-2012, 11:49 AM
When you build your business model around commission-based sales drones pimping expensive cables and misleading people into thinking LED is fundamentally different from LCD ("The "E" is two more than the "C!"), you kind of have to expect word will get around and that smaller players like Monoprice might offer cables that perform every bit as well.

If I remember correctly, Best Buy isn't commission based, unless that changed.

ack_bak
03-29-2012, 11:53 AM
Unfortunately, more and more consumers have been going to Best Buy to view the product, and then ultimately making their purchases online.

I've always tried to make my purchases at a B&M store if they are priced close enugh to online retailers, since they provide an avenue to actual view/touch the product to see how it performs, and their overhead expense has to account for something.

Sadly, once they close, there will be one less venue to actually see what you buy before buying the product.

That is the point of the article above and I tend to agree with it. Best Buy needs to meet or beat Amazon at their own game. It is not enough to have a physical store, you have to offer a good shopping experience with great customer service, and a no-nonsense return policy. You also need to have seamless functionality between your online store and your physical store. The prices should be the same, it should be easy to see what is and is not in stock in the store online, and it needs to be accurate.

Best Buy, to be frank, is nowhere close to offering the experience I get when shopping at Amazon. Their stores are poorly configured. Their staff is annoying more than helpful 80% of the time. Their online prices are often cheaper than their in store prices and you have to spend the 5-10 minutes it takes to get a price adjustment.

It is not close. If it was close to Amazon, I would shop there more.

From the article:

Amazon lives and breathes the customer's point-of-view. It completely engineers its business practices, its systems and its people to support it. When the folks at Amazon make a mistake, they admit it and they fix it. Immediately. Once, when I had a problem with a new TV that turned out to be a manufacturing flaw, the company begged me to let them pick up the unit, send something else and install it for me. That was more solution than I needed, let alone asked for.

It's not just Amazon's prices that are better, in other words. Its customer service is superior in every way. And unlike traditional retailers, it recognizes its own potential disadvantages and innovates ways to overcome them. The company has no retail locations to pick up merchandise, but it ships instantly, often for free. It has no on-site sales experts to answer questions, but the pages of its products are filled with videos, FAQs, and customer reviews and answers.

The company keeps track of all previous orders, and uses its database to make helpful recommendations of other purchases. Phone support is instant, responsive and knowledgeable. Returns are simple and unburdened by restocking fees and other gotchas. Inventory is precisely managed in a single system that spans all distribution points and third-party partners.

Best Buy could have done all of this years ago -- and done it better. It had decades of experience in retail, in customer service, in distribution, in forecasting, in marketing and in sales. It had, one presumes, computer systems that could have been upgraded to integrate with a new online front end. It had expertise in the electronic products it sells and potent leverage over key manufacturers to ensure favorable terms and access.

(Years ago, the CEO of a leading appliance manufacturer told me he felt obliged to keep a low profile on the Web or face the wrath of his main retail partner. Not many years later, the partner, Circuit City, was out of business. Oops.)

But Best Buy squandered all of those assets. And now, along with many of its big-box peers, the company is caught in a death spiral. Not because of new competitors who, fairly or unfairly, are eating its lunch. These wounds are self-inflicted.

chipvideo
03-29-2012, 11:55 AM
This is hardly a surprise. I told everyone Best Buy's days are numbered. Looks just like Circuit City 2.0

Everyone already uprgaded to surround sound and hdtvs durring DVD's heyday.

Kosty
03-29-2012, 12:02 PM
50 larger stores out of 1000. That's 5%. That's leaving 95%.

Most of those will probably be older under performing stores that were duplicate stores in the same urban or suburban markets.




The Minneapolis-based consumer electronics retailer said it would shutter 50 big box stores in the current (2013) fiscal year as it plans to cut $800 million in costs through 2015, including $250 million this year. It plans to open 100 smaller footprint Best Buy Mobile stand alone stores during the same period.

Best Buy ended 2011 operating more than 1,000 stores in the United States. It plans to operate 600 to 800 Mobile stores in the coming years, up from 305 stores today.

TowerGrove
03-29-2012, 12:09 PM
But Blu-ray was up 20% YoY?!?

Yes Blu is up but Best Buy is down. People are buying their films, music, TVs, computers and various items from other retailers. They are, after all Amazons showroom. I have said this before but many of the employees I run into at Best Buy are unhelpful and seem to spend more time talking with other employees about last weekends date or being more concerned with their newly forming pimple than to help the customer. Best Buy customer service sucks!

Also I read elsewhere about the Best Buy issue that some are saying the demise of Best Buy may bring us back to smaller and locally owned electronics stores where inventory is properly managed and the customer is top priority.

TowerGrove
03-29-2012, 12:14 PM
This is hardly a surprise. I told everyone Best Buy's days are numbered. Looks just like Futureshop 2.0

Everyone already uprgaded to surround sound and hdtvs durring DVD's heyday.

Not just that but the market I live is when it comes to items like mobile phones is saturated. Companies like US Cellular are merging districts or getting out of the market completely. When I went to look at the new Samsung Note Phone the other day at Best Buy no one was in the mobile section. Matter of fact very few in the store period.
Best Buy is running itself into the ground and I feel bad for the few good employees that wil lose their jobs.

HD Goofnut
03-29-2012, 12:27 PM
It will be Circuit City all over again and we definitely saw this coming.

ack_bak
03-29-2012, 12:35 PM
It will be Circuit City all over again and we definitely saw this coming.

It is amazing isn't it? That Best Buy makes the same mistakes CC did?

BrianO
03-29-2012, 12:49 PM
Everyone already uprgaded to surround sound and hdtvs durring DVD's heyday.

What utter nonsense.

However, I do agree with the Futureshop 2.0 comment.

leevitalone
03-29-2012, 12:50 PM
people are walking in to BB with smart phones, look at the intended purchase, scan the bar code and walla! check intstantly the price against amazon, and do the math- shipping opposed to taxes, and amazon wins! You get to see the item working, then decide if you really want it, then get the lowest price off amazon.
It's not BB's fault! They have no control over this. CC went quicker, BB knew to lower prices, seeing the trend, but just lost out. With very little overhead, not having to pay out rents/utilites/staff/etc, amazon can beat them all with price's.

bombsnizzle
03-29-2012, 01:03 PM
But Blu-ray was up 20% YoY?!?

But Apple already sold 3M new iPads?!?

jkkyler
03-29-2012, 01:05 PM
people are walking in to BB with smart phones, look at the intended purchase, scan the bar code and walla! check intstantly the price against amazon, and do the math- shipping opposed to taxes, and amazon wins! You get to see the item working, then decide if you really want it, then get the lowest price off amazon.
It's not BB's fault! They have no control over this. CC went quicker, BB knew to lower prices, seeing the trend, but just lost out. With very little overhead, not having to pay out rents/utilites/staff/etc, amazon can beat them all with price's.

Did you read the linked article or the following below which has already been posted once in this thread

Amazon lives and breathes the customer's point-of-view. It completely engineers its business practices, its systems and its people to support it. When the folks at Amazon make a mistake, they admit it and they fix it. Immediately. Once, when I had a problem with a new TV that turned out to be a manufacturing flaw, the company begged me to let them pick up the unit, send something else and install it for me. That was more solution than I needed, let alone asked for.

It's not just Amazon's prices that are better, in other words. Its customer service is superior in every way. And unlike traditional retailers, it recognizes its own potential disadvantages and innovates ways to overcome them. The company has no retail locations to pick up merchandise, but it ships instantly, often for free. It has no on-site sales experts to answer questions, but the pages of its products are filled with videos, FAQs, and customer reviews and answers.

The company keeps track of all previous orders, and uses its database to make helpful recommendations of other purchases. Phone support is instant, responsive and knowledgeable. Returns are simple and unburdened by restocking fees and other gotchas. Inventory is precisely managed in a single system that spans all distribution points and third-party partners.

Best Buy could have done all of this years ago -- and done it better. It had decades of experience in retail, in customer service, in distribution, in forecasting, in marketing and in sales. It had, one presumes, computer systems that could have been upgraded to integrate with a new online front end. It had expertise in the electronic products it sells and potent leverage over key manufacturers to ensure favorable terms and access.

(Years ago, the CEO of a leading appliance manufacturer told me he felt obliged to keep a low profile on the Web or face the wrath of his main retail partner. Not many years later, the partner, Circuit City, was out of business. Oops.)

But Best Buy squandered all of those assets. And now, along with many of its big-box peers, the company is caught in a death spiral. Not because of new competitors who, fairly or unfairly, are eating its lunch. These wounds are self-inflicted.

It would seem that it most certainly is BB fault.

Kosty
03-29-2012, 01:35 PM
But Blu-ray was up 20% YoY?!?

That silly.

Blu-ray is not the only thing Best Buy sells.

If you actually looked at the article instead of just reflexively trying to criticize Blu-ray you can see many of the other issues discussed and the one time financial charges that Best Buy included in this period that were totally unrelated to sales as well.

Blu-ray is still a high margin product for Best Buy and gains there are only a small part of the Best Buy financials.



Best Buy Co. March 29 reported a fourth-quarter (ended March 3) net loss of nearly $1.7 billion, compared with net income of $651 million during the previous-year period. Global sales increased 3% to $16.6 billion from $16 billion last year.

Much of the loss included $2.6 billion in impairment charges ($1.2 billion) and writedowns related to the purchase of Carphone Warehous Group's interest in Best Buy Mobile, in addtion to the restructuring costs at Best Buy Europe.

Without the charges, the Minneapolis-based consumer electronics retailer actually posted operating income of $1.3 billion. Indeed, same-store sales decline narrowed to 2.4% from 4.7% during the previous-year period.
http://www.homemediamagazine.com/best-buy/best-buy-posts-17b-loss-shuttering-50-big-box-stores-26822

Kosty
03-29-2012, 01:37 PM
"Show-rooming" is a serious concern that Best Buy and other brick and mortar retailers have and its a hot topic of discussion in the retail trade.


Unfortunately, more and more consumers have been going to Best Buy to view the product, and then ultimately making their purchases online.

I've always tried to make my purchases at a B&M store if they are priced close enough to online retailers, since they do provide the ability to actually view/touch the product to see how it performs, and their overhead expense has to account for something.

Sadly, once they close, there will be one less venue to actually see what you buy before buying the product.

Kosty
03-29-2012, 01:39 PM
people are walking in to BB with smart phones, look at the intended purchase, scan the bar code and walla! check intstantly the price against amazon, and do the math- shipping opposed to taxes, and amazon wins! You get to see the item working, then decide if you really want it, then get the lowest price off amazon.
It's not BB's fault! They have no control over this. CC went quicker, BB knew to lower prices, seeing the trend, but just lost out. With very little overhead, not having to pay out rents/utilites/staff/etc, amazon can beat them all with price's.

There are a few ideas out there to combat that including opt in apps for consumers for their smartphones and tablets that might offer discounts or coupons on the spot for being doing those checks.

Malanthius
03-29-2012, 02:17 PM
50 larger stores out of 1000. That's 5%. That's leaving 95%.

Most of those will probably be older under performing stores that were duplicate stores in the same urban or suburban markets.

You think this is going to end here? Really? This is just the beginning of the end for BB for all the reasons everyone else has pointed out. You are coming off as dismissive to this news. Like its no big deal. Not suprising when you can't see the Bluray performance issues we discuss.

Malanthius
03-29-2012, 02:21 PM
Did you read the linked article or the following below which has already been posted once in this thread



It would seem that it most certainly is BB fault.

Exactly. BB failed on so many levels. They could have made changes sooner. A lot of us saw it coming here. How is it that the CEO didn't have the smarts to see the problems and make changes sooner? Nobody else's fault but Best Buys.

ack_bak
03-29-2012, 02:22 PM
"Show-rooming" is a serious concern that Best Buy and other brick and mortar retailers have and its a hot topic of discussion in the retail trade.

I think Best Buy uses it way too much as an excuse for their own self inflected short comings.

Go back to the debacle that was this past holiday season. Best Buy sold tons of items online to customers before Christmas only to cancel orders just a day or two before Christmas day because they could not fulfill the order (even though they said it could be delivered in time at the time of purchase).

I know because this happened to me with several items, and not only did they not offer to ship them after Christmas (which I would have been okay with since I got them on a good deal) but they just cancelled the order entirely. I got a $10 gift card. Wahoo.

This type of thing would never have happened at Amazon, and if it did, Amazon would have made it right.

This is just one example of how screwed up Best Buy is an how out of touch they are with the competition.

I am with Chip, unless they make some drastic changes and really get their act together they will be gone within a matter of years.

Kosty
03-29-2012, 02:24 PM
You think this is going to end here? Really? This is just the beginning of the end for BB for all the reasons everyone else has pointed out. You are coming off as dismissive to this news. Like its no big deal. Not suprising when you can't see the Bluray performance issues we discuss.

Best Buy has had issues for years but its still here and is not going away at least for the next two years under any circumstances as even under the worst scenarios possible it will sustein itself through the 4Q 2012 and 4Q 2013 holiday seasons and emerge in 2014.

Its not surprising that you would exaggerate the end of Best Buy just as you have exaggerated the timing of the end of physical media or Blu-ray for as long as I have known you.

I agree that Best Buy has serious issues to worry about but closure of 5% of its locations is not hugely significant by itself.

jkkyler
03-29-2012, 02:24 PM
Exactly. BB failed on so many levels. They could have made changes sooner. A lot of us saw it coming here. How is it that the CEO didn't have the smarts to see the problems and make changes sooner? Nobody else's fault but Best Buys.

Especially since they has at least a decade on some of the on-line retailers out there and got to watch the previous Big box Electronics store (Circuit City) fail from a lot of the same things.


Does anybody know if Magnolia Stores fare any better than regular BB stores?

Kosty
03-29-2012, 02:27 PM
I think Best Buy uses it way too much as an excuse for their own self inflected short comings.

Go back to the debacle that was this past holiday season. Best Buy sold tons of items online to customers before Christmas only to cancel orders just a day or two before Christmas day because they could not fulfill the order (even though they said it could be delivered in time at the time of purchase).

I know because this happened to me with several items, and not only did they not offer to ship them after Christmas (which I would have been okay with since I got them on a good deal) but they just cancelled the order entirely. I got a $10 gift card. Wahoo.

This type of thing would never have happened at Amazon, and if it did, Amazon would have made it right.

This is just one example of how screwed up Best Buy is an how out of touch they are with the competition.

I am with Chip, unless they make some drastic changes and really get their act together they will be gone within a matter of years.

That online issue last holiday season was amazingly stupid.

I agree that Best Buy has many issues and things they have down poorly in responding to the market and showrooming is not the only issue they face. I agree that I think there defenders use it as an excuse as well.

Kosty
03-29-2012, 02:28 PM
You think this is going to end here? Really? This is just the beginning of the end for BB for all the reasons everyone else has pointed out. You are coming off as dismissive to this news. Like its no big deal. Not suprising when you can't see the Bluray performance issues we discuss.

I also do not see it as the end of there contraction of larger stores.

But you have to put 5% closure rate into perspective.

dsskid
03-29-2012, 02:32 PM
That is the point of the article above and I tend to agree with it. Best Buy needs to meet or beat Amazon at their own game. It is not enough to have a physical store, you have to offer a good shopping experience with great customer service, and a no-nonsense return policy. You also need to have seamless functionality between your online store and your physical store. The prices should be the same, it should be easy to see what is and is not in stock in the store online, and it needs to be accurate.

Best Buy, to be frank, is nowhere close to offering the experience I get when shopping at Amazon. Their stores are poorly configured. Their staff is annoying more than helpful 80% of the time. Their online prices are often cheaper than their in store prices and you have to spend the 5-10 minutes it takes to get a price adjustment.

It is not close. If it was close to Amazon, I would shop there more.

From the article:

Not looking to debate, but what type of shopping experience are you referring to when you speak of Amazon. Can you actually go there, visually inspect the product, compare products other than written prescription?

Reviews should be taken with a grain of salt, and I prefer to form my own opinion by actually seeing the product perform. IMO, that is what is missing by shopping online.

Now price wise, Amazon is superior. But I'm looking for more than that when I shop.

Kosty
03-29-2012, 02:41 PM
All things considered I'll buy from my local Best Buy if things are close but I'm not shy at all in using them to comparison shop and see the products as well.

If they let me get the deal close enough that I do not think I'm throwing money away they can get my business but if I'm looking at an high value occasional purchase like a new HDTV or major appliance there is just no way in heck that I'm going to buy something like that without comparison shopping and it being on sale.

Kosty
03-29-2012, 02:44 PM
Best Buy has an competitive advantage after Circuit City's demise as the last major free standing big box consumer electronics and white goods retailer out there.

If they squander that advantage or do not adjust to increased competition and fail to adapt to the changing marketplace they need to adapt or die. Simple as that.

If the economy improves more and more as it has recently then that will help them as well.

ack_bak
03-29-2012, 03:15 PM
Not looking to debate, but what type of shopping experience are you referring to when you speak of Amazon. Can you actually go there, visually inspect the product, compare products other than written prescription?

Reviews should be taken with a grain of salt, and I prefer to form my own opinion by actually seeing the product perform. IMO, that is what is missing by shopping online.

Now price wise, Amazon is superior. But I'm looking for more than that when I shop.

No worries dsskid, I have always appreciated your knowledge and perspective on the forum.

Per the Amazon shopping experience I am talking about the actual sale of the item and then the post sale customer service.

Let me give you an example. I was ready to replace my 6 year old iMac recently with a brand new one. I did not need to go to the Apple Store or Best Buy to look at one, I already knew I wanted to buy this particular model of computer and I knew the configuration I wanted. Amazon was not only cheaper (both retail price and no tax) but I am also an Amazon Prime member which means I get free (using the word free loosely) 2 day shipping. With that, I also purchased an extra 8GB of RAM. Amazon processed my order that day and it was at my house in about 32 hours. Except the extra RAM (that was stated as being shipped with the computer) was not there and the box had a gap where the packing tape came loose. I assumed that the RAM must have fallen out during shipping. This was on a Friday (early afternoon).

So, I went to the Amazon website to customer service, and they called me within a minute. I spoke to a live representative, she looked into my order, listened to my story and within about 5 minutes had already told me that they were overnighting the RAM and apologized profusely. She was kind the whole time. I received the RAM the next day at my doorstep.

But wait. It gets better. I was putting away the box and packing material into the recycle can and sure enough what do I find but the missing RAM.. I felt bad, I don't know how I missed it. So I called Amazon to tell them I found the RAM and I would be happy to just keep the other RAM they overnighted it and pay for it (can never have enough RAM). Their reply. They told me since I was such a loyal customer and that they felt it was not a good job packaging the RAM that I could keep it for no charge...

Now compare that the ordeal I went through just a few months back trying to return a $20 item to Best Buy that I spent about 45 minutes waiting in line for, or my cancelled Christmas items that were supposed to be delivered a few days before Christmas..

I realize that some items (like HDTV's) are something many people would not feel comfortable buying online sight unseen. But Amazon, for me, has really taken away any doubt if I am not happy. That said, I do find myself preferring to buy electronics at Sams Club or Costco because of their price and they return policy. Costco, for example, automatically adds another year of warranty to their HDTV's and they offer a no-hassle 90 day return policy.

I also hate the tactics Best Buy ueses with their sales people trying to push warranties and expensive add-ons. And, as I said, the Amazon online shopping experience is so much better. I have never had Amazon tell me something was in stock when I go to place an order and then send me an email later on saying the item is backorderd. Never. Also with Bestbuy.com, if you want to cancel an item before it ships you cannot do it online (like you can with Amazon). You have to call, and it is always extremely painful getting somebody that actually knows what they are doing on the phone. It is Russian roulette. I rarely order anything from Bestbuy.com any more.

Sorry for the long post, but wanted you to get an idea of what I was talking about.

dsskid
03-29-2012, 03:27 PM
Understood. Thank you for taking the time to explain your perspective.

GizmoDVD
03-30-2012, 09:08 AM
That silly.

Blu-ray is not the only thing Best Buy sells.

If you actually looked at the article instead of just reflexively trying to criticize Blu-ray you can see many of the other issues discussed and the one time financial charges that Best Buy included in this period that were totally unrelated to sales as well.

Blu-ray is still a high margin product for Best Buy and gains there are only a small part of the Best Buy financials.


http://www.homemediamagazine.com/best-buy/best-buy-posts-17b-loss-shuttering-50-big-box-stores-26822

But Blu-ray was up 20% YoY! How in the world can Best Buy not be enjoying that amazing $400 million of additional revenue?! I don't understand. Blu-ray should be saving retailers!

HD Goofnut
03-30-2012, 09:23 AM
But Blu-ray was up 20% YoY! How in the world can Best Buy not be enjoying that amazing $400 million of additional revenue?! I don't understand. Blu-ray should be saving retailers!

It's not a BD connection Giz. It's an online connection. Amazon and other cheaper online venues have been cutting into Best Buy's bottom line for years and now, combined with the recession, they are starting to see the effects of it

bruceames
03-30-2012, 10:42 AM
I think it's been a combination of online (mostly), no tax on Amazon, and their own ineptitude. Costco I'm sure hurts them in HDTV sales, and online for the rest.

I agree 100% with the Forbes writer in that I almost always leave pissed off from there. The way their BDs are organized is a joke, especially the ones that are on sale. You can't find them, and it's often because they are nowhere to be found.

I used to like Best Buy a lot. I've bought quite a few DVDs from them, but it's much easier and cheaper to get them online now.

I don't know what the future holds for Best Buy, but they seem to be more and more depending on the service model (Geek Squad and extended warranties) and less on merchandise.

mikemorel
03-30-2012, 11:18 AM
Blu-ray is still a high margin product for Best Buy and gains there are only a small part of the Best Buy financials.TK's Take, from HMM (I'm not surprised you didn't post this):

Best Buy Redesign a Bad Idea (http://www.homemediamagazine.com/tks-take/best-buy-redesign-bad-idea)

It’s sad for me to hear Best Buy is in trouble. The consumer electronics chain, which played a key role in getting DVD off the ground back in the late 1990s, has seen a significant decline in same-store sales and says it will close 50 big-box stores this year. The culprit, the chain says, is that more and more customers are using its stores as a showroom to check out new products and then buying them, for less, online.

Not me. For the past decade, every computer, every iPad, every iPod, every printer, every printer ink cartridge and every TV I’ve purchased has been bought at Best Buy. I figure I spent upwards of $10,000 on electronic gadgets from Best Buy throughout the past decade, and nothing I’ve bought there ever disappointed me.

One reason I keep going back to Best Buy is the prices are competitive. The other is that I liked the look of the stores.
I have my own ideas as to why Best Buy is floundering, and they’re not the same ones CEO Brian Dunn cited in an analysts call.

For starters, I don’t like the new store layouts the chain has been rolling out. The old footprint was inviting and friendly; the new look appears cluttered and too focused on products like the iPad and mobile phones that, quite frankly, I can get elsewhere.

Putting entertainment software – Blu-ray Discs, DVDs and CDs – in the back also wasn’t a smart move. A big chunk of the packaged media business comes from impulse buys, which is why Target, for example, is now selling discs at endcaps near the checkout lanes.

Best Buy has a great assortment of packaged media, but you wouldn’t know it. It’s tucked all the way in the back. Out of sight, out of mind. Furthermore, as I understand it, the department has been outsourced, so the personal care and attention given to product choice, merchandising and display under the Joe Pagano/Gary Arnold eras is conspicuously absent.

Walmart’s embrace of UltraViolet underscores the mass merchant’s commitment to packaged media, which it always has recognized as a traffic driver. I can’t fathom why Best Buy isn’t taking the same approach. When packaged media sales started declining, Walmart did something about it. Best Buy’s tactic appears to be moving discs into the back, as though they’re being punished for something.

Customer service also has suffered. Don’t get me wrong – Best Buy associates still are helpful and generally well-mannered. The problem is, you can never find one – and there’s not much cross-departmental training so that if, for example, you approach the computer clerk with a question about TVs, he won’t be of much use. Associates should be trained about the entire product mix, and then rotated from time to time so that they can learn more about every product line Best Buy carries, instead of being stuck in one department.

I say this in the best spirit of constructive criticism. I’m a loyal Best Buy shopper, and I want to do what I can to make sure it stays afloat.

teddymines
03-30-2012, 11:58 AM
There are a few ideas out there to combat that including opt in apps for consumers for their smartphones and tablets that might offer discounts or coupons on the spot for being doing those checks.

Or BB covering the barcodes? :banghead:

Kosty
03-30-2012, 02:54 PM
There have been other observations that West Coast California Best Buys have moved packaged media to the back of the store as well.

That's not the case of the East Coast Atlantic region though as packaged media is still in the center of the center isles in the modern store floor maps.

Kosty
03-30-2012, 03:09 PM
TK's Take, from HMM (I'm not surprised you didn't post this):

Best Buy Redesign a Bad Idea (http://www.homemediamagazine.com/tks-take/best-buy-redesign-bad-idea)

It just went up and I had not seen it yet. Thanks for posting it.

chipvideo
03-30-2012, 10:49 PM
I remember when giz got blasted by many saying it wasn't true about OD being pushed into the back of the store. Of course only people with agendas had him banned on the other site even though he was right and the others were baiting and trolling and are still not banned.

ack_bak
03-30-2012, 10:52 PM
Here in Minneapolis, where Best Buy is based and has their flagship and beta stores, they have Blu-Ray movies all over the place. New releases and some sales are at the very front of the store before you checkout. Catalog and newer releases are towards the middle of the store. Hdtvs are all the way to the back. Next time I am there I will take some pics. There are also bins with uber discounts DVD and BD's mixed together.

bruceames
03-30-2012, 10:55 PM
The one near me has the movies toward the front of the store. It would appear that some have them towards the back, others in the middle or toward the front. It's a local thing.

Kosty
03-31-2012, 12:10 AM
Tom K Arnold and HMM and some of the earlier reports along those lines were in California and it seems like its more likely to be more common there than in other locations.

I can tell you that its certainly not national in scope unless its in the process of being implemented as I've seen multiple locations across my NE region not having the packaged media at the back of the store.

But I do agree with some of the other angst that Tom K. Arnold expresses there on the quality of the customer service at Best Buy as that's seems to have gone downhill as well. Not in my two closest local stores, they are pretty well managed but in other locations I have visited in the past few years.

Kosty
03-31-2012, 12:19 AM
Here in Minneapolis, where Best Buy is based and has their flagship and beta stores, they have Blu-Ray movies all over the place. New releases and some sales are at the very front of the store before you checkout. Catalog and newer releases are towards the middle of the store. Hdtvs are all the way to the back. Next time I am there I will take some pics. There are also bins with uber discounts DVD and BD's mixed together.

The one near me has the movies toward the front of the store. It would appear that some have them towards the back, others in the middle or toward the front. It's a local thing.

Best Buy has some variations for both local situations (stores by a college town might have different layouts than more urban locations), regionally (urban Northeast might vary from suburban California or Arizona) and by size of the store's physical floor space and whether or not the store was custom built on a pad from scratch or inherited leased real estate or an older design.

Tests are done all the time as well for some locations as corporate tries to squeeze revenues out of the retail space.

My largest local store has moved the movies back to the front of the store and in the center isles of the main area. In fact they moved stuff back more to the front of the store just before Black Friday for DVD and Blu-ray and moved the smaller ear phones and accessories around as well.

I'm sure what was observed in any local market is not fully national and in this case I've not heard any Best Buy announcements of any changes recently as well.

TowerGrove
03-31-2012, 04:12 PM
Best Buy has some variations for both local situations (stores by a college town might have different layouts than more urban locations), regionally (urban Northeast might vary from suburban California or Arizona) and by size of the store's physical floor space and whether or not the store was custom built on a pad from scratch or inherited leased real estate or an older design.

Tests are done all the time as well for some locations as corporate tries to squeeze revenues out of the retail space.

My largest local store has moved the movies back to the front of the store and in the center isles of the main area. In fact they moved stuff back more to the front of the store just before Black Friday for DVD and Blu-ray and moved the smaller ear phones and accessories around as well.

I'm sure what was observed in any local market is not fully national and in this case I've not heard any Best Buy announcements of any changes recently as well.

Ive noticed this as well. I wish I could get the contract to be the mover for this place. They sure do move fixtures a lot. Good for them though.

mikemorel
04-01-2012, 09:27 AM
http://i42.tinypic.com/29237rm.jpg

U.S. Best Buy stores and the related online channel have offerings in six revenue categories: consumer electronics, home office, entertainment, appliances, services and other. Consumer electronics consists of video and audio products. Video products include televisions, navigation products, digital cameras and accessories, digital camcorders and accessories, e-Readers and DVD and Blu-ray players. Audio products consist of MP3 players and accessories, home theater audio systems and components, musical instruments and mobile electronics such as car stereo and satellite radio products. The home office revenue category includes notebook and desktop computers, tablets, monitors, mobile phones and related subscription service commissions, hard drives, networking equipment and related accessories such as printers. The entertainment revenue category includes video gaming hardware and software, DVDs, Blu-rays, CDs, digital downloads and computer software. The appliances revenue category includes major appliances as well as small electrics. The services revenue category consists primarily of service contracts, extended warranties, computer-related services, product repair, and delivery and installation for home theater, mobile audio and appliances. The other revenue category includes noncore offerings such as snacks and beverages.Home Office was renamed to 'Computing and Mobile Phones'.

mikemorel
04-01-2012, 09:34 AM
I remember when giz got blasted by many saying it wasn't true about OD being pushed into the back of the store. Of course only people with agendas had him banned on the other site even though he was right and the others were baiting and trolling and are still not banned.Yep - Gizmo was persecuted for saying OD was moved to the back of his store. He was right all along.

GizmoDVD
04-01-2012, 12:46 PM
Yep - Gizmo was persecuted for saying OD was moved to the back of his store. He was right all along.

Of course I was right. I offered up photographic evidence as well to those who would apologize to me if I proved I was right. Not one person took me up on the offer. Sent the pictures to Kosty anyway who validated it.

It's alright. I know the Apologists had a tough year.

GizmoDVD
04-01-2012, 12:49 PM
There have been other observations that West Coast California Best Buys have moved packaged media to the back of the store as well.

That's not the case of the East Coast Atlantic region though as packaged media is still in the center of the center isles in the modern store floor maps.

"Observations"? Wow, what a word that is.

Guess I was 100% right all along? Amazing how that works, right?

I remember when giz got blasted by many saying it wasn't true about OD being pushed into the back of the store. Of course only people with agendas had him banned on the other site even though he was right and the others were baiting and trolling and are still not banned.

I know, right?

Let us not talk about GhostTown Digest. It's amusing to see the views decrease week after week there while HDF grows.

mikemorel
04-01-2012, 02:48 PM
From the Best Buy Investor Archive...

Here is how that Domestic 4Q product mix looked back in 2008/2009...

http://i41.tinypic.com/67joxu.jpg


Looks like the Entertainment segment for Comparable Stores has declined from 23% in March 2008 to 13% today...while "Home Office/Computing and Mobile Phones" has risen from 26% in 2008 to 38% now.

http://phx.corporate-ir.net/phoenix.zhtml?c=83192&p=quarterlyearnings

GizmoDVD
04-01-2012, 06:46 PM
But Blu-ray increased 20% YoY?!?

bombsnizzle
04-02-2012, 07:04 AM
But Blu-ray increased 20% YoY?!?

But the new iPad sold 3M units?!?

mikemorel
04-02-2012, 07:32 AM
But the new iPad sold 3M units?!?Tablet hardware sales at Best Buy are in the "Home Office/Computing and Mobile Phones" segment.

bombsnizzle
04-02-2012, 08:10 AM
Tablet hardware sales at Best Buy are in the "Home Office/Computing and Mobile Phones" segment.

And?

Has it prevented stores from closing?

Amazon doesn't even sell the iPad in a licensed way. Best Buy has the advantage there, yet still they have to close stores.

They charge $30 for a 30 cent piece of plastic screen protector.

Why hasn't the iPad prevented store closures?

Remember, here is what we are working with:

But Blu-ray increased 20% YoY?!?
A statement clearly trying to place blame on bluray for Best Buy store closures. Yet the iPad, the hottest product of the last 2 years, likewise hasn't prevented store closures.

The iPad should be blamed too right?

GizmoDVD
04-02-2012, 08:58 AM
But the new iPad sold 3M units?!?

I'm unaware we are now talking about tablets.

Oh, Wait, I get it. Because Blu-ray has failed, you need to bring up a successful product to get people talking about it?

Classic.

Keep fighting the good fight!

mikemorel
04-02-2012, 09:19 AM
I'm unaware we are now talking about tablets.Best Buy was talking about tablets in their conference call.

Tablets, iPad were mentioned 19 times.

Blu-ray, DVD, optical disc were mentioned zero times.

ack_bak
04-02-2012, 09:25 AM
So how many times did BestBuy mention "CinemaNow" at the call? Talk about a failed (and very costly) experiment...

dsskid
04-02-2012, 10:42 AM
Oh, Wait, I get it. Because Blu-ray has failed, you need to bring up a successful product to get people talking about it?


When did this happen :what: ? Thanks for the news.

bombsnizzle
04-02-2012, 10:46 AM
I'm unaware we are now talking about tablets. We are talking about Best Buy - you see the thread title RIGHT? And Best Buy sells tablets, RIGHT? And the tablet category was SPECIFICALLY mentioned in previous posts, RIGHT? Do you even read the thread before commenting?
"The home office revenue category includes notebook and desktop computers, tablets" (http://www.highdefforum.com/1248014-post48.html)

...Looks like the Entertainment segment for Comparable Stores has declined from 23% in March 2008 to 13% today...while "Home Office/Computing and Mobile Phones" has risen from 26% in 2008 to 38% now.

Do you see how tablets became part of the discussion now??????????????????????????????????????????????? ?????????????????????

Oh, Wait, I get it. Because Blu-ray has failed, you need to bring up a successful product to get people talking about it? Tablets were already discussed in posts before mine. READ THE THREAD.

Classic.

Keep fighting the good fight!HD DVD lost. Get over it.

Best Buy was talking about tablets in their conference call.

Tablets, iPad were mentioned 19 times.

Blu-ray, DVD, optical disc were mentioned zero times.

AND YET STILL we have Best Buy store closures.

Pretty clear tablets have done nothing to prevent Best Buy from having to close stores.

ack_bak
04-02-2012, 11:29 AM
AND YET STILL we have Best Buy store closures.

Pretty clear tablets have done nothing to prevent Best Buy from having to close stores.

I actually read a Forbes article where the analyst was discussing how products being sold in Best Buy is actually hurting them. The reason:
- Apple products have very tight margins for retailers (unless it is an Apple Store). Apple has larger margins on other brands, but in the case of tablets (and smart phones and music players) Apple dominates or is at the top of these markets.
- Once the Apple device is sold, Best Buy has little chance of making money on the content. People buy their apps, music, movies, etc at either the iTunes store or places like Amazon. Not Best Buy. In the past, for example, if Best Buy sold a low margin product like a DVD player, CD player, or HDTV, they would typically make their money back on CD or DVD sales. Not with tablets or smartphones, which are the hot devices right now.

mikemorel
04-02-2012, 11:36 AM
So how many times did BestBuy mention "CinemaNow" at the call?Zero. At the moment CinemaNow is a placeholder, with only a few dozen titles available for sale or rent. I doubt they are selling (or even renting) anything at all presently.

Talk about a failed (and very costly) experiment...Perhaps, but I don't think they are done experimenting.

h0mi
04-02-2012, 01:45 PM
Zero. At the moment CinemaNow is a placeholder, with only a few dozen titles available for sale or rent. I doubt they are selling (or even renting) anything at all presently.


http://en.wikipedia.org/wiki/CinemaNow

The CinemaNow library contains approximately 14,000 feature-length films, shorts, music concerts and television programs from more than 250 licensors, including 20th Century Fox, ABC News, Disney, Endemol, MGM, Miramax, NBC Universal, Sony, Warner Bros., Sundance Channel, Koch Entertainment, and Lions Gate Entertainment. Video from CinemaNow is available for electronic sell-through Download To Own, in the home video release window including DVD burning using Qflix as well as rental time-limited viewing in the pay-per-view window.

Simply going to their web site:

http://www.cinemanow.com/Movies/1007,1,5,,1,2,0/

yields this tidbit at the top left:

BUY > MOVIES
7024 titles (703 pages)

and that's just movies. It's not merely a "placeholder site", it's an active site akin to blockbuster, vudu, etc. I would say that Cinemanow is probably where Vudu was a year or 2 ago, except Vudu had a bit more promise to it- higher quality videos and stronger promotion by Walmart. Cinemanow doesn't really have much going for it- it duplicates Vudu and Itunes but doesn't really offer anyone anything that can be called an improvement over either of those services. They're in better shape than blockbuster though, whose apps on many devices no longer works because their arrangement with Roxio (IIRC) expired as of 3/31/2012 and that rendered many clients useless.

(clarified sentence that I ended a bit abruptly.)

bombsnizzle
04-02-2012, 02:20 PM
url]http://en.wikipedia.org/wiki/CinemaNow[/url]

Simply going to their web site:

http://www.cinemanow.com/Movies/1007,1,5,,1,2,0/

yields this tidbit at the top left:


and that's just movies. It's not merely a "placeholder site", it's an active site akin to blockbuster, vudu, etc. Clearly more than "a few dozen" movies. It's funny to see how people dismiss or mischaracterize things to avoid admitting something they dont want to admit about what they support.

I would say that Cinemanow is probably where Vudu was a year or 2 ago, except Vudu had a bit more promise to it- higher quality videos and . Cinemanow doesn't really have much going for it- it duplicates Vudu and Itunes but doesn't really offer anyone anything that can be called an improvement over either of those services. They're in better shape than blockbuster though, whose apps on many devices no longer works because their arrangement with Roxio (IIRC) expired as of 3/31/2012 and that rendered many clients useless.You just hit on the obstacle facing digital movies. There are so many redundant services with redundant pricing and content that users have no clue which one to get behind. Some have better HD quality and better audio quality, some are $1 cheaper than others for certain movies, some have movies that others don't have.

There is no consistency or standardization.

UV was/is supposed to fix this...

Malanthius
04-02-2012, 05:37 PM
Clearly more than "a few dozen" movies. It's funny to see how people dismiss or mischaracterize things to avoid admitting something they dont want to admit about what they support.

You just hit on the obstacle facing digital movies. There are so many redundant services with redundant pricing and content that users have no clue which one to get behind. Some have better HD quality and better audio quality, some are $1 cheaper than others for certain movies, some have movies that others don't have.

There is no consistency or standardization.

UV was/is supposed to fix this...
No. UV is suppose to save your precious...

;)

mikemorel
04-02-2012, 05:41 PM
It's not merely a "placeholder site", it's an active site akin to blockbuster, vudu, etc. So I go to Cinemanow through the Best Buy web site (where it is barely even advertised) and get this...

I see 43 titles. What is up with that?


http://i41.tinypic.com/en0uq.jpg


And trying to browse movies by going through CinemaNow.com is an excersize in futility.

Malanthius
04-02-2012, 05:42 PM
I actually read a Forbes article where the analyst was discussing how products being sold in Best Buy is actually hurting them. The reason:
- Apple products have very tight margins for retailers (unless it is an Apple Store). Apple has larger margins on other brands, but in the case of tablets (and smart phones and music players) Apple dominates or is at the top of these markets.
- Once the Apple device is sold, Best Buy has little chance of making money on the content. People buy their apps, music, movies, etc at either the iTunes store or places like Amazon. Not Best Buy. In the past, for example, if Best Buy sold a low margin product like a DVD player, CD player, or HDTV, they would typically make their money back on CD or DVD sales. Not with tablets or smartphones, which are the hot devices right now.

That makes perfect sense. Apple used BB to sell thier products. Apples products are a runaway hit. BB doesn't make much money on apple products. Apple is part of the demise of DVD and why Bluray sales are poor. Movie aisles go empty. BB goes bye bye.

h0mi
04-02-2012, 11:04 PM
So I go to Cinemanow through the Best Buy web site (where it is barely even advertised) and get this...

I see 43 titles. What is up with that?

(snip)

And trying to browse movies by going through CinemaNow.com is an excersize in futility.

It must be the best buy site. The cinemanow.com site is much more functional. I just "bought" a copy of some new pilot- "don't trust the b in apt 23" (it was free) and it was pretty easy. Plenty of stuff is available for purchase on cinemanow.... not so much the best buy site.

bombsnizzle
04-03-2012, 07:43 AM
It must be the best buy site. The cinemanow.com site is much more functional. I just "bought" a copy of some new pilot- "don't trust the b in apt 23" (it was free) and it was pretty easy. Plenty of stuff is available for purchase on cinemanow.... not so much the best buy site.

Likewise for their portals on connected bluray players and PS3s and such.

I would hazard a guess more people are exposed to the service via their connected devices as opposed to going directly to Best Buy's website.

Most normal people wouldn't even know Best Buy owned the service. They would merely see the CinemaNow logo next to the other VOD logos on their connected device.

bombsnizzle
04-03-2012, 07:46 AM
No. UV is suppose to save your precious...

;)

Is that why WB includes UV with DVD too?

Is that why Paramount sells UV on it's own, with no disc?

bombsnizzle
04-03-2012, 07:47 AM
...And trying to browse movies by going through CinemaNow.com is an excersize in futility.

Don't worry UV will fix all of this. Just you wait.

GizmoDVD
04-03-2012, 08:22 AM
Is that why WB includes UV with DVD too?

Is that why Paramount sells UV on it's own, with no disc?

Optical media is dying. Just ask Best Buy.

1stSilverado
04-03-2012, 08:48 AM
It must be the best buy site. The cinemanow.com site is much more functional. I just "bought" a copy of some new pilot- "don't trust the b in apt 23" (it was free) and it was pretty easy. Plenty of stuff is available for purchase on cinemanow.... not so much the best buy site.

Which is why Mike said that it is a placeholder for BB.

bombsnizzle
04-03-2012, 08:49 AM
Optical media is dying. Just ask Best Buy.
Does that make you happy? :confused: You're the guy that only buys discs right?

You sound absolutely giddy sometimes referring to optical media as dead/dying. We all know only HD DVD is truly dead. I wonder if you would be so quick to talk about disc media dying if HD DVD weren't already dead? Because we all know when you talk about disc media dying you really would just like for bluray to die, so you could get a good laugh out of it, you know, paybacks, misery loves company, sour grapes, etc.

It's going to be hilarious when the next xbox comes with a bluray drive and all of those new games in Best Buy are on bluray discs. Your head might explode.

1stSilverado
04-03-2012, 08:56 AM
Does that make you happy? :confused: You're the guy that only buys discs right?

You sound absolutely giddy sometimes referring to optical media as dead/dying. We all know only HD DVD is truly dead. I wonder if you would be so quick to talk about disc media dying if HD DVD weren't already dead? Because we all know when you talk about disc media dying you really would just like for bluray to die, so you could get a good laugh out of it, you know, paybacks, misery loves company, sour grapes, etc.

You make it sound like if Giz were to say OD is just fine, that would actually stop the decline!?!
I am sure he is not happy with OD declining, but that is the REALITY.

Kosty
04-03-2012, 08:57 AM
Optical media is dying. Just ask Best Buy.
Of course physical disc sales are slowing, the question is the pace that it is happening at and how long the huge amount of physical media sales and rentals will take before it no longer is significant.

$14.6 B in sales and rental in 2011 is still a huge amount of money for a consumer product category, even if you want to be in denial of that.

At least the death is a lot slower right now as OD is actually up a percent or so in the first quarter this year. Stupid consumers are still buying those shiny discs to your chagrin.

bombsnizzle
04-03-2012, 09:40 AM
You make it sound like if Giz were to say OD is just fine, that would actually stop the decline!?!
I am sure he is not happy with OD declining, but that is the REALITY.

I am saying he wouldn't talk as much trash about disc media dying if HD DVD were alive.

Take that to the bank.

ack_bak
04-03-2012, 09:47 AM
Optical media is dying. Just ask Best Buy.

Businessweek
http://www.businessweek.com/ap/2012-03/D9TQAS700.htm

Best Buy is trying to avoid the fate of its rival Circuit City, which liquidated in 2009 after it struggled with the changing electronics landscape. Sales of TVs, digital cameras and videogame consoles -- once the bread-and-butter of electronics retailers -- have weakened, while sales of lower-margin items like tablet computers, smartphones and e-readers have increased. The rise in competition from Internet rivals like Amazon.com and discounters like Target also has hurt electronics retailers.

This exact same article got picked up by the AP and all the other major media outlets. While I am sure DVD/CD sales are down, you can hardly blame that as the major reason for Best Buy stuggling. Too many factors to list, but analysts were told HDTV's, digital cameras, and videogame consoles topped the list. They don't even mention Blu-Ray or DVD.

But hey, let's blame Blu-Ray for all the worlds problems. I heard it causes cancer, obesity, riots, world hunger, and depression as well...

Kosty
04-03-2012, 09:48 AM
I am saying he wouldn't talk as much trash about disc media dying if HD DVD were alive.

Take that to the bank.

HD DVD is still alive just as Blu-ray will be long after the last Blu-ray Discs are ever released. My HD DVD players and HD DVD discs work perfectly fine even to this day. Plus a few niche HD DVDs still are trickling out even to this day. The same will happen for Blu-ray at a greater scale when it finally trails into the sunset many years from now.

But Blu-ray will be alive as an actively released format for many years to come even as it declines.

But it does seem like he is missing the news that the decline in OD has slowed this year as its not convenient to his narrative. If the rate of OD decline stays smaller through the end of the year it just means that discs will be around even longer still.

bombsnizzle
04-03-2012, 10:03 AM
HD DVD is still alive just as Blu-ray will be long after the last Blu-ray Discs are ever released.

Yeah and so are Elvis and 2Pac

Kosty
04-03-2012, 10:56 AM
Yeah and so are Elvis and 2Pac

Well my HD XA2 and HD XA1 and all my HD DVD discs are still working perfectly fine even though they have not gotten any new sisters since 2008 or maybe 2009.;):D

Its not like the discs went up in smoke when Toshiba abandoned HD DVD support and the studios stopped releasing HD DVD discs when the format war ended and HD DVD died as a new release format.

My HD XA2 is still my go to device for DVD upconversion (and playing my HD DVD collection) and my HD XA1 is still my best CD transport device as well. But I do admit my PS3 gets a lot more work nowadays as a Blu-ray player and streaming device.

Malanthius
04-03-2012, 05:43 PM
I am saying he wouldn't talk as much trash about disc media dying if HD DVD were alive.

Take that to the bank.

And you wouldn't talk so much trash if Bluray were actually doing well. It's obvious it gets under your skin to hear the truth about Bluray. Tit for tat I guess?

Malanthius
04-03-2012, 05:49 PM
Sorry man. But HDDVD is dead. I called it dead after Warner went Blu. Sure Toshiba didn't throw in the towel yet. But it was over at that point. Same would have happened to Bluray if Warner went red. It would have just took longer. I think Disney and Sony would have rode that ship into damnation rather than cut thier losses the way Toshiba did. Just an opinion.

HD DVD is still alive just as Blu-ray will be long after the last Blu-ray Discs are ever released. My HD DVD players and HD DVD discs work perfectly fine even to this day. Plus a few niche HD DVDs still are trickling out even to this day. The same will happen for Blu-ray at a greater scale when it finally trails into the sunset many years from now.

But Blu-ray will be alive as an actively released format for many years to come even as it declines.

But it does seem like he is missing the news that the decline in OD has slowed this year as its not convenient to his narrative. If the rate of OD decline stays smaller through the end of the year it just means that discs will be around even longer still.

bombsnizzle
04-03-2012, 07:56 PM
And you wouldn't talk so much trash if Bluray were actually doing well. It's obvious it gets under your skin to hear the truth about Bluray. Tit for tat I guess?

What trash do I talk? Please enlighten me.

DonnyDC
04-03-2012, 10:03 PM
I thought movies were just there to get people shopping. Not that they were huge earners by themselves. If BB stores are closing down I doubt DVD sales are even in the top 3 reasons as to why.

Number 1 being.
The challenge for Best Buy is simple: It can't be the showroom for electronic sales online.
Online shopping.

Kosty
04-03-2012, 10:05 PM
Sorry man. But HDDVD is dead. I called it dead after Warner went Blu. Sure Toshiba didn't throw in the towel yet. But it was over at that point. Same would have happened to Bluray if Warner went red. It would have just took longer. I think Disney and Sony would have rode that ship into damnation rather than cut thier losses the way Toshiba did. Just an opinion.

I agree with you that HD DVD was doomed when Warner announced that it would withdraw HD DVD support and go all Blu. That announcement just before CES 2008 was meant as a killing blow and pretty much did just that as HD DVD was dead man walking after that occurred.

mikemorel
04-10-2012, 10:44 AM
Dunn Resigns as Best Buy’s Chief Executive (http://www.nytimes.com/2012/04/11/business/dunn-resigns-as-best-buys-chief-executive.html)
The chief executive of Best Buy, Brian J. Dunn, resigned on Tuesday, less than two weeks after he outlined an ambitious restructuring to revive the struggling retailer.

G. Mike Mizan, a board member and former health care executive, will become interim chief executive as the board searches for a permanent replacement.

“There was mutual agreement that it was time for new leadership to address the challenges that face the company,” a statement from Best Buy’s board said. “There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures.”

Best Buy operates hundreds of giant stores, but people are increasingly buying electronics online. When they do go into chains like Best Buy, they often examine products, do a price check with their mobile phone and then make the purchase from an online competitor. That has turned Best Buy stores into showrooms for places like Amazon.com to some degree, analysts say.

Some investors said that Mr. Dunn was doing too little to address online pressures.

“Some investors had been frustrated with Dunn’s tenure, given his strong affinity for physical retailing and perceived slowness to adapt to threats facing the company,” Colin McGranahan, a Sanford Bernstein analyst, wrote in a note to clients.

In its latest fiscal year, which ended in March, sales rose only slightly, and the company lost $1.23 billion. Sales at stores open more than a year fell 1.7 percent.

When he reported fourth-quarter results, Mr. Dunn announced “major actions” he was taking to change the business. He said Best Buy would close about 50 of its big-box stores, add hundreds of small Best Buy Mobile locations, increase employee training and bonuses for better customer service and aim to increase domestic online sales by 15 percent this coming year.

But its Internet business has run into problems, too. Though domestic online sales grew 18 percent in fiscal 2012, Best Buy was unable to get some orders to consumers in time for Christmas, despite guaranteed Christmas delivery.

A recent study by Barclays also found that online, Best Buy’s prices were more than 4 percent more expensive than Amazon’s, and its shipping offers were not as compelling, despite Best Buy’s announcement it would make prices competitive.

“We are not completely surprised by today’s announcement, given the difficulties that have plagued Best Buy for years — namely, a deteriorating product cycle, over-expansion both domestically and internationally, as well as intensifying e-commerce threats,” Alan Rifkin, a Barclays Capital analyst, wrote in a note to clients.

Mr. Dunn, who had started at Best Buy in 1985 as a salesman, had been chief executive since 2009.

Best Buy’s shares dropped 2.6 percent in trading Tuesday, to $22.07.

TowerGrove
04-10-2012, 10:49 AM
Dunn Resigns as Best Buy’s Chief Executive (http://www.nytimes.com/2012/04/11/business/dunn-resigns-as-best-buys-chief-executive.html)

Good riddance! Watch as the rats flee the sinking ship. Amazon showroom indeed.

Cygnus
04-10-2012, 11:05 AM
Interesting that dunn started as BB salesman and became their CEO.

Kosty
04-10-2012, 12:39 PM
Best Buy CEO Dunn Steps Down
10 Apr, 2012
By: Erik Gruenwedel, Chris Tribbey

http://www.homemediamagazine.com/files/homemediamagazine/nodes/2012/26919/BestBuy.jpg

Best Buy CEO and director Brian Dunn has resigned, the company announced April 10, less than two weeks after the retailer reported a fourth-quarter net loss of nearly $1.7 billion.

Best Buy stressed that there “were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures” and that “there was mutual agreement that it was time for new leadership to address the challenges that face the company.”

Best Buy previously had announced plans to shutter 50 stores in the current (2013) fiscal year and to cut $800 million in costs through 2015, including $250 million this year. During this year Best Buy plans on opening 100 smaller Best Buy Mobile stand alone stores.

Best Buy director G. Mike Mikan has been named interim CEO while the retailer searches for a new, permanent CEO. Mikan has been a Best Buy director since April 2008 and previously served as EVP and chief financial officer of United Health Group Inc. and CEO of health services company Optum.

Best Buy founder Richard Schulze will continue to serve as chairman.

“I have enjoyed every one of my 28 years with this company, and I leave it today in position for a strong future,” Dunn said in a statement. “I am proud of my fellow employees and I wish them the best.”

Best Buy has created a search committee consisting of Schulze and members of the retailer’s nominating, corporate governance and policy committee to search for a new CEO.

“We thank Brian Dunn for his many years of service to the company and wish him well in his next endeavors,” Schulze said. “As we move forward, we are very pleased to have a strong leader with Mike Mikan's credentials as interim CEO.”

Mikan added: “The Best Buy team and I will be extremely focused on successfully managing this period of transition. I want to assure our employees, customers and other key stakeholders that we will work together to achieve our company's growth and profitability goals.”


http://www.homemediamagazine.com/best-buy/best-buy-ceo-dunn-steps-down-26919

Kosty
04-10-2012, 12:41 PM
I think he was under increasing pressure from his board ever since Best Buy website had a meltdown in the height of the holiday buying season.

That was seen to be an inexcusable unforced error that management should have ensured could never happen.

PSound
04-15-2012, 11:35 AM
Best Buy Details Store Closings

Best Buy Co . on Saturday disclosed the 50 large stores it is closing as the struggling electronics retailer tries to shrink its massive footprint of about 1,100 big-box locations in the U.S.

The list of 50 stores being closed by the world's largest specialty electronics chain includes seven locations in California and six in Illinois. The company had previously disclosed only a few of the locations, announcing last month that five stores in Minnesota's Twin Cities and one in San Antonio would be closing later this year. Two additional stores, in Kansas City, Mo., and Scottsdale, Ariz., already closed in February, it said.

"This wasn't an easy decision to make," Best Buy said in a statement. "We chose the stores carefully, and are working to ensure the impact to our employees will be as minimal as possible."

Best Buy said most of the stores will close by May 12, with three locations closing later this summer.

http://online.wsj.com/article/SB10001424052702304444604577343884165564936.html

Kosty
04-15-2012, 12:22 PM
Glad to see the CEO wasn't distracted or anything recently then so he could concentrate all his energies on helping the company negotiate the changing environment. :eek:


The closures are part of a plan announced by former Chief Executive Brian Dunn last month to begin shifting away from the big-box formula that made the retailer a powerhouse in the 1990s, by remodeling some large stores, shuttering 50 others and opening new smaller stores focused on selling mobile phones and tablets.

Mr. Dunn resigned this week amid what the company later called a probe into his "personal conduct", throwing the Richfield, Minn., retailer into additional turmoil.

The investigation by the company's board of directors is exploring whether Mr. Dunn misused company assets in the course of an alleged relationship with a female subordinate, people familiar with the matter said.

A spokesman for the company's board said it plans to eventually make the findings of its investigation public and take additional actions against Mr. Dunn and others if warranted.

Board member G. Mike Mikan is now serving as interim CEO while a board committee searches for a permanent successor, a process that the company expects will take six to nine months.

GizmoDVD
04-15-2012, 12:25 PM
They should really stock more Blu-ray - it'll save Best Buy!

No, but really, this is no surprise. They can't even come close to Amazon prices.

Kosty
04-15-2012, 12:25 PM
Here's the list of stores being closed.


http://online.wsj.com/article/SB10001424052702304444604577343884165564936.html#p roject%3Dbestbuy20120414%26articleTabs%3Dinteracti ve

HD Goofnut
04-15-2012, 02:23 PM
Here's the list of stores being closed.


http://online.wsj.com/article/SB10001424052702304444604577343884165564936.html#p roject%3Dbestbuy20120414%26articleTabs%3Dinteracti ve

Well, the two in my area are staying open. They must be moneymakers.

Kosty
04-15-2012, 02:33 PM
Well, the two in my area are staying open. They must be moneymakers.

All the ones around me as well.

Most of the ones in the Northeast region that I see are also unaffected.

Besides the main Boston one most I see are in in older suburbs in the NE.

Just at a glance, a lot of the stores on that list are in metro areas where there are multiple Best Buy locations in a larger city area and it looks like they are closing the least productive store in a regional area where consumers can still travel to another store if they still wanted to go to a Best Buy.

Kosty
04-16-2012, 09:13 AM
A story from Chicago.

Just an insight of the strategy here from Best Buy.

A lot of the store closures are probably in the same markets with overlap. As an example 5 of the announced 50 stores are in the Chicago market and 5 stores are in the Minneapolis St, Paul Twin Cities area in Minnesota.

But even after their closings Best Buy will still have 53 stores remaining in the Chicago metro area for brick and mortar Chicago area customers.

They are just getting leaner in their market coverage and overlap here at least in those metro areas.


Best Buy to close 6 Chicago-area stores

[video at link]

Staff report
6:30 a.m. CDT, April 15, 2012

Best Buy announced today that six Chicago-area stores will be among the 50 nationwide that the retailer plans to close.

The locations for the six stores are: 1038, N. Rohlwing Rd. in Addison, 8900 S. Lafayette Ave. in Chicago, 200 S. Waukegan Rd. in Deerfield, 4707 Lincoln Mall Dr. in Matteson, 1100 N. Route 83 in Mundelein, and 979 W. Main St. in West Dundee. Only California had more closings than Illinois.

The Matteson, Mundelein and West Dundee stores will be closed today but will re-open Sunday for final sales before closing for good May 12, according to the release. The Addison and Deerfield stores will both be open today, with no specific date set for their final closing. The Chicago store's final day open was Saturday.

In the release, the company said, "This was not an easy decision to make. We chose these stores carefully, and are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way. But we also recognize the impact this news has on the people who deserve respect for contributions they have made to our business."

In the release, the company said customers that are doing business with these stores are also being contacted today.

Best Buy spokeswoman Kelly Groehler said employees at the six stores were notified at store meetings early this morning and that the company then sent out an e-mail press release announcing the closings. She could not say how many employees were affected.

According to the release, the Minnesota-based company will help those employees find other positions within the company. But if they don't find one or do not want to transfer to another location, they will be able to take advantage of a severance package.

The release said that the company still has 53 locations in the Chicago region — 44 stores and 9 Best Buy Mobile stores.

The company had earlier announced that it planned to close 50 stores this year. Two, in Scottsdale, Ariz., and Kansas City, Mo. closed in February, and on March 29, the company said it would close 5 stores in the Twin Cities area in Minnesota and one in San Antonio.

Today's announcement of the other 42 stores included 7 in California, 6 in Illinois, 3 in Virginia, 2 in Arizona, Florida, Georgia, Massachusetts, Maryland, North Carolina, and Ohio, and 1 each in Colorado, Kansas, Maine, Minnesota, Missouri, Nebraska, New York, Puerto Rico, Rhode Island, Tennessee, Texas, and Washington.
http://www.chicagotribune.com/business/breaking/chi-best-buy-chicago-store-closings,0,6301200.story

GizmoDVD
04-16-2012, 09:25 AM
A story from Chicago.

Just an insight of the strategy here from Best Buy.

A lot of the store closures are probably in the same markets with overlap. As an example 5 of the announced 50 stores are in the Chicago market and 5 stores are in the Minneapolis St, Paul Twin Cities area in Minnesota.

But even after their closings Best Buy will still have 53 stores remaining in the Chicago metro area for brick and mortar Chicago area customers.

They are just getting leaner in their market coverage and overlap here at least in those metro areas.

http://www.chicagotribune.com/business/breaking/chi-best-buy-chicago-store-closings,0,6301200.story

Closing is still closing.

They are not getting as much business as they had - or hoped - hence why stores are closing.

bruceames
04-16-2012, 10:19 AM
Whew, I thought the six Chicago closings would clean the city out and Chicagoans would have to travel to Milwaukee to shop at a surviving BB outlet.

bruceames
04-16-2012, 10:20 AM
Closing is still closing.

They are not getting as much business as they had - or hoped - hence why stores are closing.

It doesn't really count as a closing as long as there's another outlet within a 12 mile radius as all their customers will gladly travel the 12 miles to the other store and so not lose any business. ;)

Kosty
04-16-2012, 10:24 AM
You have to admit that 59 stores in a single metro area is a lot of coverage and that going down to 53 brick and mortar locations is hardly abandoning the market there.

Hardly surprising that they would want to trim off some some of the lower performing stores in that case in an era of declining sales.

Leaving 53 stores in the Chicago area is not quite abandoning their brick and mortar sales model yet this year. You have to place things into perspective here.

Dave J
04-16-2012, 05:24 PM
The release said that the company still has 53 locations in the Chicago region — 44 stores and 9 Best Buy Mobile stores.


That still seems a bit oversaturated in relation to the current competitive field of physical stores. It may have been a neccessary evil during the Circuit City, MediaPlay, etc. era but those days are long gone.

In comparison, I live in the greater Toronto area with a population of 6 million and we only have 24 Best Buy/Best Buy Mobile stores by my rough count. According to wiki the Chicago area has a population of 9.8 million. Unless their customer base is extremely adverse to travelling any sort of distance I can't see how the additional cost would justify maintaining that many stores. Seems like a no-brainer to me and an effective way to trim the fat with potentially minimal impact to sales.

TowerGrove
04-16-2012, 05:48 PM
Glad to see the CEO wasn't distracted or anything recently then so he could concentrate all his energies on helping the company negotiate the changing environment. :eek:

Innocent until proven Kosty but this is a serious charge for sure.

TowerGrove
04-16-2012, 05:50 PM
Closing is still closing.

They are not getting as much business as they had - or hoped - hence why stores are closing.

Strangely the store here in St Louis thats closing is only about 1/2 mile down the same road from a new Best Buy. I always wondered why they didnt close the older store to begin with, now its happening. Didnt make $$ since to me.

PSound
04-16-2012, 09:17 PM
It doesn't really count as a closing as long as there's another outlet within a 12 mile radius as all their customers will gladly travel the 12 miles to the other store and so not lose any business. ;)

Of course. Closing stores never means less sales volume in PR land.

GizmoDVD
04-17-2012, 08:21 AM
It doesn't really count as a closing as long as there's another outlet within a 12 mile radius as all their customers will gladly travel the 12 miles to the other store and so not lose any business. ;)

IF they will.

IF they closed my Taco Bell here, I certainly wouldn't travel 12 miles to another one. I'd go to Del Taco.

Folks, this is an example. I really don't like either of those places.

Kosty
04-17-2012, 08:42 AM
Of course. Closing stores never means less sales volume in PR land.

You are creating straw man out of the air. No one said that at all.

Fewer brick and mortar stores selling physical media will have an effect obviously.

The point here is that when many of the stores are closing in highly saturated markets that still have dozens of stores in the region the results will be somewhat smaller in impact than if they were the only stores in the regional market. These are also the worst performing stores so their statistical impact will also be less on sales than the less 2% reduction in Best Buys store count would also imply.

Malanthius
04-18-2012, 10:55 AM
IF they will.

IF they closed my Taco Bell here, I certainly wouldn't travel 12 miles to another one. I'd go to Del Taco.

Folks, this is an example. I really don't like either of those places.

I would drive 12 miles to Taco Bell for a combo#3 soft, and a Bean Burritto. ;)

SOBAY310
04-18-2012, 11:13 AM
I would drive 12 miles to Taco Bell for a combo#3 soft, and a Bean Burritto. ;)

I could see myself driving 15 miles for a Mexican Pizza :D

Cygnus
04-18-2012, 03:25 PM
Taco Hell sux... No chipotles in your area?

I would drive 12 miles to Taco Bell for a combo#3 soft, and a Bean Burritto. ;)

SOBAY310
04-18-2012, 03:42 PM
oh c'mon, Chipotle doesn't even compare to Chronic Tacos!

http://24.media.tumblr.com/tumblr_lyg2jz0Ta11qhujrwo1_500.jpg (http://27.media.tumblr.com/tumblr_lyg2jz0Ta11qhujrwo1_1280.jpg)


Best carnitas tacos I've ever had.

jkkyler
04-18-2012, 05:19 PM
For me Q'doba is where it is at. Like chipotle on steroids only even better plus in season they make the best mango salsa ever - maybe I should take some to the guys at Best buy as a consolation.

HD Goofnut
04-18-2012, 07:55 PM
Taco Hell sux... No chipotles in your area?

I wish we had Jim Boy's in the southeast. That was about the only redeeming thing I noticed about California besides Costco.

chipvideo
04-18-2012, 08:03 PM
You guys are all wrong. You need to go visit some "Roach Coaches". Nothing beats the gold old taco bus.

GizmoDVD
04-18-2012, 08:10 PM
oh c'mon, Chipotle doesn't even compare to Chronic Tacos!

http://24.media.tumblr.com/tumblr_lyg2jz0Ta11qhujrwo1_500.jpg (http://27.media.tumblr.com/tumblr_lyg2jz0Ta11qhujrwo1_1280.jpg)


Best carnitas tacos I've ever had.

Mine closed :(

Kosty
04-18-2012, 08:22 PM
I still love the all you can eat tacos at Casa Bonita in Denver when I visit there.

While watching the indoor cliff divers and wandering Mariachi band. (really)

http://www.casabonitadenver.com/

http://images.travelpod.com/users/fullwat/1.1304425326.3_casa-bonita.jpg

robertva
04-18-2012, 09:43 PM
Restaurant chains aren't a good comparison. How many people order hot food over the Internet for delivery from a kitchen hundreds or even thousands of miles away? I didn't think so. Yes, some restaurants allow customers to order food for delivery from a nearby kitchen, but there are seldom items on the menu small enough for one person to eat at one sitting, you have to tip the driver and there might be delivery or fuel surcharges.

I haven't tried Chipotle, but isn't their main business burritos? Often I crave the crunch of a taco shell with my Tex/Mex. Many of the local Tex/Mex places tend to concentrate on fajitas and leave the complementary Nachos with just salsa and perhaps a peppercorn ranch sauce. When the nearby Chipotle had their grand opening they were offering a free burrito, but the lines were ridiculous.

Cygnus
04-18-2012, 09:50 PM
We don't have that here... :o

oh c'mon, Chipotle doesn't even compare to Chronic Tacos!

http://24.media.tumblr.com/tumblr_lyg2jz0Ta11qhujrwo1_500.jpg (http://27.media.tumblr.com/tumblr_lyg2jz0Ta11qhujrwo1_1280.jpg)


Best carnitas tacos I've ever had.

Cygnus
04-18-2012, 09:57 PM
Yes, they specialize in burritos but they do have soft tacos. You are right about the lines. No matter which chipotle I go to, the line is closed to being out the door. Cr@ck must be an ingredient in their burritos or something :what: I normally get the burrito bowl as their food is pretty high in fat and calories.

I haven't tried Chipotle, but isn't their main business burritos? Often I crave the crunch of a taco shell with my Tex/Mex. Many of the local Tex/Mex places tend to concentrate on fajitas and leave the complementary Nachos with just salsa and perhaps a peppercorn ranch sauce. When the nearby Chipotle had their grand opening they were offering a free burrito, but the lines were ridiculous.

robertva
04-19-2012, 10:47 AM
We had a couple of El Polo Locos for about two years, but they closed and now the closest location is several states away.

Malanthius
04-22-2012, 08:30 AM
Taco Hell sux... No chipotles in your area?

Still haven't tried it. My daughter raves about it though. I'll have to try it. But I'm going to end this debate once and for all. King Taco. Several locations in east LA. If you haven't been? Go now if you are in LA. You can thank me later. It's the best by far I've ever had. Anyone that goes there says the same thing. They are open 24 hrs I think. Always a wait no matter what time you go. And the workers barely speak English. Great! Now I'm craving it!!

PSound
04-22-2012, 10:16 AM
Still haven't tried it. My daughter raves about it though. I'll have to try it. But I'm going to end this debate once and for all. King Taco. Several locations in east LA. If you haven't been? Go now if you are in LA. You can thank me later. It's the best by far I've ever had. Anyone that goes there says the same thing. They are open 24 hrs I think. Always a wait no matter what time you go. And the workers barely speak English. Great! Now I'm craving it!!

King Taco is great.

Kosty
04-22-2012, 12:15 PM
Still haven't tried it. My daughter raves about it though. I'll have to try it. But I'm going to end this debate once and for all. King Taco. Several locations in east LA. If you haven't been? Go now if you are in LA. You can thank me later. It's the best by far I've ever had. Anyone that goes there says the same thing. They are open 24 hrs I think. Always a wait no matter what time you go. And the workers barely speak English. Great! Now I'm craving it!!

Never ate there myself. Or at least not recently, but it sounds familiar and my mouth started watering when I saw the name.

When I talk to some Los Angeles, California people I know the subject of food has sometimes come up and King Taco has been mentioned on occasion as a craving so it must be good to be mentioned in conversation out of the blue.

In my ancient past, I lived worked and went to school in the LA area for a time and that seems real familiar. I know I had great tacos in LA from time to time.

mytime
04-22-2012, 12:32 PM
Being as I live in Missouri the concept of a fish taco was foreign to me. Went to San Diego and there was a little cart selling them. Awesome, just awesome.

Lee Stewart
04-25-2012, 06:27 PM
NPD: Best Buy’s Demise a Fallacy

http://www.homemediamagazine.com/best-buy/npd-best-buy-s-demise-fallacy-27083