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  • iPad to Blame for Best Buy Store Closures?


    On Thursday it was announced that Best Buy will close 50 stores around the U.S. and relinquish some 400 employees as ongoing cost-cutting measures are taking their toll on the big box retailer's expansive market presence.

    All told, the electronics retailer needs to trim about $800 million in costs.

    So what's to blame for the company's financial burdens? After all, it seems like a lot of people still shop there and almost as many people buy iPhones and iPads from Best Buy as they do directly through Apple. Incredibly, however, the iPad is one of culprits Best Buy is blaming for today's unfortunate cutbacks.

    Let's pause for a moment while we all wrap our heads around that statement.

    You see, according to Best Buy, the low margins retailers like Best Buy see from iPad sales, regardless of how popular the devices may be, take their toll on the company's bottom line - a bottom line that is also suffering from the compound effects of sluggish PC sales.

    "I am not satisfied with the pace or degree of change we have made up to this point," Chief Executive Brian Dunn said in a conference call with analysts, adding, "We are evolving our retail store strategy. We are increasing our points of presence while decreasing our overall square footage."
    At the end of the day, Best Buy has to do what Best Buy sees fit to do. And the numbers confirm this reality. The company, after all, reported a loss of $1.7 billion for the quarter ending March 3rd of this year.

    Source: Wall Street Journal
    This article was originally published in forum thread: iPad to Blame for Best Buy Store Closures? started by Michael Essany View original post
    Comments 71 Comments
    1. KraXik's Avatar
      KraXik -
      Best buy have closed a load of stores they had only just opened in the UK.
    1. AislinnMln's Avatar
      AislinnMln -
      This kind of makes sense. After all, they're selling the iPad for the same price as Apple - and we have no idea what Apple charges them for stock. For all we know, they're only making $10 a unit.
    1. Truckerbear's Avatar
      Truckerbear -
      Because Best Buy has never really been the BEST BUY! I mean anyone with half a brain knows this. I shop at Best Buy and go home and order it online or find it cheaper at another big box store.
    1. BenderRodriguez's Avatar
      BenderRodriguez -
      Quote Originally Posted by Truckerbear View Post
      Because Best Buy has never really been the BEST BUY! I mean anyone with half a brain knows this. I shop at Best Buy and go home and order it online or find it cheaper at another big box store.
      ++1
    1. mustard05's Avatar
      mustard05 -
      Are you serious with junk? Products like the iPad have probably brought more traffic to Best Buy stores, where these shoppers probably bought a screen protector and case. Not to mention that traffic has probably led to other sales not related to Apple products.
      The iPad is not to blame, its obviously other factors like too many stores, to much overhead, bad business practices, and an inability to successfully adapt to internet shopping quickly and efficiently, and most importantly, correct budgeting.
      You have a bad habbit of writing stories that are twisted.
    1. GmAz's Avatar
      GmAz -
      Maybe its because its FAR cheaper to buy stuff online. Buying a computer or TV in the store used to be the best/easiest way to do it, but its not anymore.
    1. mustard05's Avatar
      mustard05 -
      Quote Originally Posted by GmAz View Post
      Maybe its because its FAR cheaper to buy stuff online. Buying a computer or TV in the store used to be the best/easiest way to do it, but its not anymore.
      Well according to the writer of this stupid article, it couldnt be for the reasons you mentioned. Its the iPads fualt.
    1. KraXik's Avatar
      KraXik -
      Quote Originally Posted by mustard05 View Post
      Well according to the writer of this stupid article, it couldnt be for the reasons you mentioned. Its the i pads fualt.
      Anyone who repeatedly calls the iPad the i pad, isn't allowed to comment on Apple stuff. Please log off.
    1. crackertime's Avatar
      crackertime -
      I still remember the day I found out that a corporate loss represents no actual money lost, but just not meeting a projected total profit for the quarter. Blew my mind.
    1. mustard05's Avatar
      mustard05 -
      Quote Originally Posted by KraXik View Post
      Anyone who repeatedly calls the iPad the i pad, isn't allowed to comment on Apple stuff. Please log off.
      Are you serious with that comment? I have seen post on this forum that are barely readable, and you pick how I spelt "I pad" to comment about. LMFAO.
    1. ryanortiz's Avatar
      ryanortiz -
      I actually saw a story on Best Buy recently. The major problem is people come into the store ask great questions look at merchandise and use their smart phone in the store to compare online prices. The big box store has too much overhead and can't compete.
    1. AGIAMIU's Avatar
      AGIAMIU -
      Quote Originally Posted by Truckerbear View Post
      Because Best Buy has never really been the BEST BUY! I mean anyone with half a brain knows this. I shop at Best Buy and go home and order it online or find it cheaper at another big box store.
      The other day I was in Best Buy to purchase a screen protector for ipad.The store was almost empty and was like 6PM weekday, however the only people from the store were all crowded around the new ipad or in front of big iMac screens. One gentleman was by the nerds counter waiting for his laptop. No surprise that are closing stores. To big, to expensive, online shopping is much economical even with the delivery charges.
    1. valkraider's Avatar
      valkraider -
      Maybe they (Best Buy) lose money because I can get that $39.99 HDMI cable for $5 from CablesForLess and I don't have to deal with rude and ignorant Best Buy sales monkeys?
    1. PoEtikly's Avatar
      PoEtikly -
      Best Buy employees are the used car salesman of electronic stores. They are so full if crap and literally bs people into buying things. I've caught damn near every associate that's helped me at Best Buy in a straight out lie. They all need to close!
    1. brodimus's Avatar
      brodimus -
      Like an idiot, I bought a case for my iPhone from Best Buy for $20. Minutes later, I walk into a dollar store down the street and see the exact same type of case. I bought that one and went right back into Best Buy and got my money back. I'm using the dollar store case right now.
    1. csglinux's Avatar
      csglinux -
      Quote Originally Posted by Truckerbear View Post
      Because Best Buy has never really been the BEST BUY! I mean anyone with half a brain knows this. I shop at Best Buy and go home and order it online or find it cheaper at another big box store.
      True, but kind of sad. Once there's nothing but online retailing left, how will we compare products? It's not practical to order ten 60" TVs and mail back the nine you don't like. If this trend continues, you won't be able to go into a brick & mortar store (or a chicken-wire & stucco store for you folks in the US) to make that initial comparison.
    1. WilliamGEstill's Avatar
      WilliamGEstill -
      Quote Originally Posted by valkraider View Post
      Maybe they (Best Buy) lose money because I can get that $39.99 HDMI cable for $5 from CablesForLess and I don't have to deal with rude and ignorant Best Buy sales monkeys?

      so what do u know about best buy staff that gives you the right to insult them with such a name?
      u better than them? its interesting that you can take an actually concerning topic thread and use it as an avenue to get that one little verbal jab in that didn't even need to be there, much less contribute anything worth while.
      makes your feel better about yourself i guess.
    1. alternapop's Avatar
      alternapop -
      yet how much do they make from those grossly overpriced yet incredibly average sounding Beats headphones?
    1. Hunter926's Avatar
      Hunter926 -
      In my opinion this is partially because people come in, speak with the staff for half an hour or so then go to buy online. Normally this wouldn't be a big problem, however in that time customers walk in and get frustrated because the online shopper is taking up all the associates time then leaves. It happens more than not. Personally I think it's rude to take up someone's time, get all the knowledge u were searching for, then tell them to pretty much screw off and your buying online. That's a lot of lost sales and angry customers getting mad and going online because they think they're being ignored. No that's not always the case and not wholly to blame but it's probably part of it. That's my perspective anyways.
    1. ninicp's Avatar
      ninicp -
      Quote Originally Posted by valkraider View Post
      Maybe they (Best Buy) lose money because I can get that $39.99 HDMI cable for $5 from CablesForLess and I don't have to deal with rude and ignorant Best Buy sales monkeys?
      While I agree with your first statement I thing your second is completely ignorant. Years ago I used to work at Best Buy and while not everyone there knows everything about all of the products they sell most of them know far more than the average consumer. When I managed the camera department I had a study guide I'd have the employees memorize so they could speak to the product.