Best Buy closing stores.... - High-Def Digest Forums
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Old 04-16-2012, 03:59 PM
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Default Best Buy closing stores....

http://money.cnn.com/2012/04/16/news....htm?hpt=hp_t3

I remember when this happened to both Comp USA and Circuit City, and it was one of the signs it was dying. Now it seems to be Best Buys turn.
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Old 04-16-2012, 04:37 PM
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I am in Cincy,OH. I am closer to the Fields Ertel store...but there is also the Tri County store and Eastgate store. I'm safe. Dayton store is closing...that sucks.
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Old 04-16-2012, 04:45 PM
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No stores in Louisville or Southern Indiana closing.
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Old 04-16-2012, 05:19 PM
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Looks like 1 store here in AZ already closed and 2 more will be. I have to say I am surprised it's not 1 of the stores near me since within 10 mile radius there is at least 4 stores and a couple more may fall in there too. But like most others amazon has gotten most of my business the last couple years. It helps when there customer service kicks best buys ass. I think I have had only a couple pleasant outcomes at best buy while maybe only a couple negative incidents at amazon.
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Old 04-16-2012, 05:35 PM
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Looks like 1 store here in AZ already closed and 2 more will be. I have to say I am surprised it's not 1 of the stores near me since within 10 mile radius there is at least 4 stores and a couple more may fall in there too. But like most others amazon has gotten most of my business the last couple years. It helps when there customer service kicks best buys ass. I think I have had only a couple pleasant outcomes at best buy while maybe only a couple negative incidents at amazon.
Yeah, that seems to be the common thread amongst all of the chains that I've seen going under - terrible customer service.
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Old 04-16-2012, 05:36 PM
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Maybe they can actually build some parks where these shit stores used to be. You know, somewhere I can walk with my family and dogs and not be hassled with needing the buy things and huge adds shoved in my face.
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Old 04-16-2012, 05:45 PM
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Well, BestBuy's main problem right now is all of their real estate and leases. Those costs are HUGE, and they're fixed - meaning they dont change when times are bad or good. Also, these huge costs have to be recouped somehow and that's very difficult if places like Amazon can simply undercut your price.

Amazon doesn't have to pay for huge stores, nor the huge staff that bestbuy does. So Amazon can sell the same item at a lower price and still make more money off of it than Bestbuy would. That makes them way more attractive to investors. Further, there is also the problem - becoming more and more serious, that people who used to purchase things at Bestbuy now use the stores as huge personal product demonstration rooms before they go and purchase the item on Amazon. So basically, you utilize Bestbuy's resources (stores/staff/demo products) and let them foot the bill for those items, and then you go and hand the money to Amazon when it's all said and done. There are even phone apps to help you do this (simply scan a bar code).

I don't see a way to save this business model. My guess is that instead, they need very small stores in only the largest cities (big enough only to display essential merchandise, like TV's and maybe some appliances) and then create a huge and robust online store to compete with Amazon. Otherwise, everytime the economy takes a dip, Amazon is going to wipe the floor with Bestbuy because Bestbuy cant get their costs down with all those stores.
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Old 04-16-2012, 07:13 PM
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Well, BestBuy's main problem right now is all of their real estate and leases. Those costs are HUGE, and they're fixed - meaning they dont change when times are bad or good. Also, these huge costs have to be recouped somehow and that's very difficult if places like Amazon can simply undercut your price.

Amazon doesn't have to pay for huge stores, nor the huge staff that bestbuy does. So Amazon can sell the same item at a lower price and still make more money off of it than Bestbuy would. That makes them way more attractive to investors. Further, there is also the problem - becoming more and more serious, that people who used to purchase things at Bestbuy now use the stores as huge personal product demonstration rooms before they go and purchase the item on Amazon. So basically, you utilize Bestbuy's resources (stores/staff/demo products) and let them foot the bill for those items, and then you go and hand the money to Amazon when it's all said and done. There are even phone apps to help you do this (simply scan a bar code).

I don't see a way to save this business model. My guess is that instead, they need very small stores in only the largest cities (big enough only to display essential merchandise, like TV's and maybe some appliances) and then create a huge and robust online store to compete with Amazon. Otherwise, everytime the economy takes a dip, Amazon is going to wipe the floor with Bestbuy because Bestbuy cant get their costs down with all those stores.
Personally I still prefer a brick and mortor store. I like to be able to hold what I am buying.....get a good look at it before I put my money down. I also prefer to be able to pick it up that day and return it the same day if something is wrong.
I think Best Buy could survive on some kind of model that concentrated on the advantages that they have over an online retailer even if it means paying a premium. i.e have knowledgable and friendly staff that can answer your questions and make sure you are buying what you need at a resonable price.

Unfortunately everybody that has ever walked into a Best Buy knows that they give you the complete opposite. Idiotic staff that dont know the first thing about the thing you want to buy......who pressure you to buy something more expensive that you dont need.....and who try to sell you a service plan of every freekin thing in the store.......No, I really dont want your 2 year service plan for a ####ing video game.

They need to concentrate on their advantages over online instead of trying to beat Amazon at their own game.

Just my opinion.
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Old 04-16-2012, 09:36 PM
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Personally I still prefer a brick and mortor store. I like to be able to hold what I am buying.....get a good look at it before I put my money down. I also prefer to be able to pick it up that day and return it the same day if something is wrong.
I think Best Buy could survive on some kind of model that concentrated on the advantages that they have over an online retailer even if it means paying a premium.
Some of what you're describing is impulse buying, and the other stuff is sort of the old fashioned approach of holding/inspecting your purchase.

I don't think it's nearly enough to support BestBuy in its current form. People, including myself, simply convert (sometimes slowly) into internet shoppers. And Amazon's customer service, and prime, make it a pretty painless transition.

There is a huge convenience to one click buying, and having something show up on your doorstop (sometimes the next afternoon) or within 2 days with no shipping cost (after prime membership). Returns are equally easy; the return slip actually comes with every purchase.

Further, things like games have same day delivery, and other things like TV's sometimes offer the white-glove installation service.

Really, there just isn't any real reason for me to go to bestbuy unless I need to impulse buy / buy something for that evening (very rarely), or if I want to see how a TV performs before I buy it (once every 5 years maybe??). Everything else, I just like sitting on my doorstep waiting for me when I get home. Maybe I'm lazy, but that's just really nice - and then I dont have to deal with driving and spending time in some retail store.


In going with your plan of emphasizing their advantages over an online store, I think there are relatively few advantages and that's why I suggested closing all stores except for those with the highest foot traffic (those in the biggest cities), drastically reducing the footprint of remaining stores (smaller lease payments), and the point of those smaller stores would be to showcase things like TVs - because people want to see how TVs compare to another before purchasing. Perhaps stereo equipment fits that set of criteria. Blu-rays would not. Physical media should be sold on their website.

This wouldn't make everyone happy, but it would get rid of a TON of BestBuy's overhead costs - which is absolutely killing them, and will kill them off if left unchecked. Everything needs to go online unless its something people like to see showcased, or it's something with higher margin that people like buying in-store.
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Old 04-16-2012, 09:58 PM
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Originally Posted by Badger3920 View Post
Some of what you're describing is impulse buying, and the other stuff is sort of the old fashioned approach of holding/inspecting your purchase.

I don't think it's nearly enough to support BestBuy in its current form. People, including myself, simply convert (sometimes slowly) into internet shoppers. And Amazon's customer service, and prime, make it a pretty painless transition.

There is a huge convenience to one click buying, and having something show up on your doorstop (sometimes the next afternoon) or within 2 days with no shipping cost (after prime membership). Returns are equally easy; the return slip actually comes with every purchase.

Further, things like games have same day delivery, and other things like TV's sometimes offer the white-glove installation service.

Really, there just isn't any real reason for me to go to bestbuy unless I need to impulse buy / buy something for that evening (very rarely), or if I want to see how a TV performs before I buy it (once every 5 years maybe??). Everything else, I just like sitting on my doorstep waiting for me when I get home. Maybe I'm lazy, but that's just really nice - and then I dont have to deal with driving and spending time in some retail store.


In going with your plan of emphasizing their advantages over an online store, I think there are relatively few advantages and that's why I suggested closing all stores except for those with the highest foot traffic (those in the biggest cities), drastically reducing the footprint of remaining stores (smaller lease payments), and the point of those smaller stores would be to showcase things like TVs - because people want to see how TVs compare to another before purchasing. Perhaps stereo equipment fits that set of criteria. Blu-rays would not. Physical media should be sold on their website.

This wouldn't make everyone happy, but it would get rid of a TON of BestBuy's overhead costs - which is absolutely killing them, and will kill them off if left unchecked. Everything needs to go online unless its something people like to see showcased, or it's something with higher margin that people like buying in-store.
Fair points.
However I am not talking just about impulse buys.....Best Buy has a major advantage over online retailers if they chose to act on it of having a sales person right there that you can ask questions off. If they had somebody who could talk about the products in a intelligent maner and offer honest advice that is one example of something that online retailers cannot offer.

Unfortunately it is something that Best Buy are unwilling to invest in.

I just dont think the answer for Best Buy is to turn themselves into Amazon......what would be the point? We already have Amazon very heavily set up in that market place. If Best Buy try to take on Amazon at their own game the already estabilished Amazon is going to destroy them.

Yes Amazon has big advantages over bricks and mortor......I think the answer for bricks and mortor stores is to concentrate on their advantages and not try to jump into a market that has already been sown up.

but then maybe that's why I'm not in sales


Hell Best Buy already has an online store.......what percentage of the market do you think it is compared to Amazon?
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