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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...
03-29-2012, 11:59 AM #1
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."
Source: Wall Street Journal
03-29-2012, 12:10 PM #2
Best buy have closed a load of stores they had only just opened in the UK.
03-29-2012, 12:16 PM #3
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.
03-29-2012, 12:24 PM #4
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.
03-29-2012, 12:35 PM #5
03-29-2012, 12:36 PM #6
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.
Last edited by mustard05; 03-29-2012 at 12:57 PM.
03-29-2012, 12:37 PM #7
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.
03-29-2012, 12:41 PM #8
03-29-2012, 12:46 PM #9
03-29-2012, 12:51 PM #10
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.
03-29-2012, 12:55 PM #11
03-29-2012, 01:04 PM #12
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.
03-29-2012, 01:06 PM #13Best buy
03-29-2012, 01:07 PM #14
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?
03-29-2012, 01:09 PM #15
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!
03-29-2012, 01:11 PM #16
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.
03-29-2012, 01:14 PM #17
03-29-2012, 02:07 PM #18
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.
03-29-2012, 02:28 PM #19
yet how much do they make from those grossly overpriced yet incredibly average sounding Beats headphones?
03-29-2012, 02:38 PM #20
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.
Last edited by Hunter926; 03-29-2012 at 02:47 PM.