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In a note to investors this week, Wedbush analyst Michael Pachter said it's going to be increasingly difficult for Best Buy to compete with online retailers, CNet reports.
"We expect continued market share losses in consumer electronics to online retailers and lower-priced big-box competitors, and entertainment software to Gamestop, Amazon, and Wal-Mart," Pachter wrote.
Best Buy recently posted weaker-than-expected sales in a number of categories, including TVs, PCs, and videogames. Sales were down 3 percent from a year ago, though the brick-and-mortar electronics chain still made a profit of $217 million on almost $12 billion in revenue.
That means Best Buy doesn't have to go into panic mode just yet, but it should look to alter its strategy. According to Pachter, lower prices online undermine Best Buy's "widest selection of goods at premium price points."
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M3g4d37h
January 05, 2011 at 6:13pm
that place has sucked since day one. go to frys, or anyplace else.
deadsenator
January 05, 2011 at 5:55pm
Though I do see a need for them with regards to people who don't understand technology or on-line sales. Since I am a techie, I almost never have a need so immediate that I would have to subject myself to a 5x price hike on an item to get it today. Newegg for parts, Costco for misc items (teeveez, flash memory, portable drives or BluRay players), fleaBay or Amazon for other odd items (DVDs, CDs, stereo components).
What does BB offer? Nothing for me or my market segment (us). But there are many, many clueless people out there and that is why BB can still make a profit.
Zachary K.
January 05, 2011 at 11:48am
i still go to BB for small, or things i need immediatly, but NE is where i get all my equipment. BB has a limited selection and their video card shelf has 3 or 4 generation old cards and nothing form the latest generation.
edit: wow, spam filter. should change it to allow words that are in the article, like BB.
n0b0dykn0ws
January 05, 2011 at 11:30am
I was just screwed by Best Buy and will never be shopping from them again.
My TV was under a 4 year plan, and started exhibiting problems around the end of November. I placed a call in, and the TV was picked up by a local repair company on 12/1/10. On 12/10/10 my TV was returned with a new panel, but blacks/contrast was not right at all. Anything black looked blotchy.
Called Best Buy back on 12/11/10, the TV was picked back on 12/14/10 and on 12/16/10 I was told there was another part ordered. The next week I still had not received word the part was in so I called the local repair center on 12/21/10. There had not been enough business days from the time of the order to that day. Fast forward to last week and there was still no word on the part. I spoke with a man from Silver Sales Response team who informed me that the part was backordered, that an order from another vendor had been authorized. The local repair center informed me it would be 7 to 14 business days.
Spoke with various members from Silver Sales Response, 3rd Party Service Center, Geek Squad, and Consumer Relations all at Best Buy corporate on 12/29/10. I told them how I would be without a working TV on 12/31/10. The 3rd Party Service Center person told me that they did not have a set time limit, that they could take as long as they want, but that the new part was authorized as an overnight shipment. Spoke with the local repair center again, and they informed me that no, the part had been ordered standard shipping as per 3rd Party Service Center's order.
Spoke with the local repair center on 1/3/11 to find out the part was backordered from the second vendor and there was no ETA, that an exchange of my TV was now submitted for approval.
On 1/4/11 I spoke with a Geek Squad agent, supervisor, and manager who all informed me the people that told me there was no time limit were full of crap, that they had 30 days.
Even though I endured all this, including being lied to and being without a working TV for over 35 days, I was getting no extra compensation at all. Now I'm being given a choice between 3 entry level TVs when I bought a midrange TV at the time of purchase.
I will never be shopping at Best Buy again, no matter how much I need the item right away.
n0b0dykn0ws
ssbowers
January 05, 2011 at 11:16am
I bought my first HDTV from BB, and my next two from Amazon. Recently I needed a large compact flash card: Best Buy's price - $300, online - $75.
praetor_alpha
January 05, 2011 at 10:42am
They could start by having reasonable prices (so that they ARE best buys), and killing the "Geek Squad". And also by not having their customers bend over.
JoetheMobster
January 05, 2011 at 10:03am
For me, I will only purchase some things on the internet. Computer parts being one of them, so the NCIXs and NewEggs of the world will always get my business. If I purchase "bigger" things like a TV, the brick and mortar store is going to get my business every time.
chipmunkofdoom2
January 05, 2011 at 9:49am
Good. When you charge $60 for a 5' HDMI cable that you can get on sale at Meritline any given day for $1 (no shipping), you deserve to lose sales.
