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Best Buy closing stores

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Old 03-29-2012, 02:41 PM   #31
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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.
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Old 03-29-2012, 02:44 PM   #32
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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.
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Old 03-29-2012, 03:15 PM   #33
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Originally Posted by dsskid View Post
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.
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Old 03-29-2012, 03:27 PM   #34
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Understood. Thank you for taking the time to explain your perspective.
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Old 03-30-2012, 09:08 AM   #35
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Originally Posted by Kosty View Post
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/bes...x-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!
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Old 03-30-2012, 09:23 AM   #36
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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
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Old 03-30-2012, 10:42 AM   #37
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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.
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Old 03-30-2012, 11:18 AM   #38
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Quote:
Originally Posted by Kosty View Post
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

Quote:
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.
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Old 03-30-2012, 11:58 AM   #39
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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?
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Old 03-30-2012, 02:54 PM   #40
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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.
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Old 03-30-2012, 03:09 PM   #41
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Quote:
Originally Posted by mikemorel View Post
TK's Take, from HMM (I'm not surprised you didn't post this):

Best Buy Redesign a Bad Idea
It just went up and I had not seen it yet. Thanks for posting it.
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Old 03-30-2012, 10:49 PM   #42
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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.
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Old 03-30-2012, 10:52 PM   #43
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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.
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Old 03-30-2012, 10:55 PM   #44
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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.
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Old 03-31-2012, 12:10 AM   #45
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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.
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Last edited by Kosty; 03-31-2012 at 12:49 AM.
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