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Thread: Best Buy financial troubles

  1. #1

    Default Best Buy financial troubles

    I did not realize Best Buy was in such trouble financially. I've heard about Sears having troubles too (though not mentioned in this article). I liked having more choices, i.e. being able to shop at CompUsa, Circuit City, best Buy, etc. If Best Buy and Sears go bust where will we shop for electronics these days?

    http://finance.yahoo.com/career-work...osing-hope-247

  2. #2
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    Default Re: Best Buy financial troubles

    Among the list were RIM, makers of Blackberry smart-phones, Eastman Kodak, Cisco, and Nintendo. I guess they are all having a hard time adapting to new markets and competition.

    Eastman Kodak has had a hard time keeping up even with a digital imaging division. The competition probably sells better cameras than Kodak.. I know, I have Sony and Canon cameras. Plus iPod Touch camera.

    Apple is killing both RIM in the cellphone market and Apple's iPad and iPhone have impacted the portable game market. Sales of Nintendo's DS handheld consoles have gone down. I own a DSi... and like it for the mostly simplistic games and a few apps that I own. Yet Apple's iPod Touch plays most of the iPhone's apps and games, so getting games for FREE on the iPod Touch is a no brainer vs. the games you have to buy from Nintendo.

    And then there is Best Buy. It's nice to go to a big box store to actually look and buy tech products right there and then. But I guess in this category, Amazon is probably getting more sales. People like the convenience of just shopping at home from their computer. Of course many times I have gone to BestBuy to look at a product and then bought it from Amazon because it is slightly cheaper there.

    On another note Walmart has or will be closing down their online music store. I remember getting a few free tracks from WalMart's MP3 store after buying CDs from them that had stickers to get one or two free bonus tracks. I guess that didn't work on getting them new, repeat customers in online music sales.

    I prefer to buy my online music downloads from Amazon (generally cheaper prices than Apple) or Apple iTunes... yet there is still something about going to a record store and actually looking at the CDs or vinyl (from long ago). Can do that mostly at Jelly's. Both Best Buy and Walmart have severely shrunk their CD music departments since most people buy from online vendors. (Apple or Amazon)

    So for the time being it looks like Apple and Amazon may lead in electronics and music retailing while in the games space Microsoft and Sony may still have enough share to stay alive. I'm not a big gamer so I don't know how all the high end games hardware and software stack up against each other.
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  3. #3

    Default Re: Best Buy financial troubles

    The post office is having major problems due to the drop in the volume of mail (over the past five years, mail volume has declined by 43.1 billion pieces), because people pay bills online, etc, instead of using the postal service.

    You' think that all this "internet sales" business would perk up their volume. Unless, of course, the shipping method is UPS/FedEX instead of the USPS.
    Now run along and play, but don’t get into trouble.

  4. #4

    Default Re: Best Buy financial troubles

    Quote Originally Posted by Amati View Post
    The post office is having major problems due to the drop in the volume of mail (over the past five years, mail volume has declined by 43.1 billion pieces), because people pay bills online, etc, instead of using the postal service.

    You' think that all this "internet sales" business would perk up their volume. Unless, of course, the shipping method is UPS/FedEX instead of the USPS.
    President Obama has suggested eliminating Saturday mail to help the post office stay in business. But this has been talked about for several years, it might just happen this time. But there are pro and cons with everything, many businesses like getting Saturday mail so they can spend the weekend getting inventory ready for the new work week. So we'll see what happens.

  5. #5

    Default Re: Best Buy financial troubles

    Here in the Seattle area (Issaquah) the best buy store was full of helpful employees. Each retail outlet may vary depending on who the manager is. The personality of a manager will always escape to the Sales floor and that is why a likeable manager is very desireable in a business context.

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    Lightbulb Re: Best Buy financial troubles

    Quote Originally Posted by mel View Post
    Among the list were RIM, makers of Blackberry smart-phones … Apple is killing both RIM in the cellphone market and Apple's iPad and iPhone have impacted the portable game market. Sales of Nintendo's DS handheld consoles have gone down. I own a DSi... and like it for the mostly simplistic games and a few apps that I own. Yet Apple's iPod Touch plays most of the iPhone's apps and games, so getting games for FREE on the iPod Touch is a no brainer vs. the games you have to buy from Nintendo.
    Let's not forget Google, which catapulted into first place in the cell phone market with its Android handsets and has been America's favorite for some time. Android has outsold the iPhone for nearly two years now, and Blackberry has been in third place for just as long. As for Nintendo, if it weren't for "Wii fit" bringing the company back from the dead, the brand would have succumbed to heavyweights Sony (playstation) and Microsoft (Xbox) a long time ago.

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  7. #7

    Default Re: Best Buy financial troubles

    The market will always evolve. I'm surprised it's taken this long for USPS to realize that. Some developed countries don't even have regular postal service anymore. Nothing wrong with that. People are finding better alternatives and the old brick n mortar is being cleared for other needs.

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    Default Re: Best Buy financial troubles

    Quote Originally Posted by TuNnL View Post
    Let's not forget Google, which catapulted into first place in the cell phone market with its Android handsets and has been America's favorite for some time. Android has outsold the iPhone for nearly two years now...
    True, but since Apple controls the entire market for iOS it has remained more profitable than the dozens of makers of Android phones and devices. Android phones are a huge success, I'll readily admit... jury is still out for Android devices such as Galaxy tab, etc. Perhaps Amazon may be able to catch Apple in the tablet market with their Android based device married to its Kindle software - books and perhaps other media content - movies and music.
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    Lightbulb Re: Best Buy financial troubles

    Quote Originally Posted by lensperson View Post
    Here in the Seattle area (Issaquah) the best buy store was full of helpful employees ... The personality of a manager will always escape to the Sales floor and that is why a likeable manager is very desireable in a business context.
    I thought about this as it directly relates to Best Buy, and I must say I agree. A little more than a year ago, a guy I thought was one of the best managers — Ryan — in the home theater department at Best Buy Honolulu, disappeared. When I noticed him in the computer section, I asked a blue shirt why he was there, since he was helping several customers. I found out he was “moved.” Earlier this year, I went back to Best Buy to shop for a gift, and was told Ryan was no longer with the company. And not just him. Several managers. No wonder Best Buy is in trouble. Their turnover is heavy as it is without losing the quality guys on top!

    We can’t be so fixated on our desire to preserve the rights of ordinary Americans.

    — U.S. President Bill Clinton
    USA TODAY, page 2A
    11 March 1993

  10. #10

    Default Re: Best Buy financial troubles

    Quote Originally Posted by Mattias View Post
    The market will always evolve. I'm surprised it's taken this long for USPS to realize that. Some developed countries don't even have regular postal service anymore. Nothing wrong with that. People are finding better alternatives and the old brick n mortar is being cleared for other needs.
    You're absolutely right about the business model changing for postal delivery. The same could pretty much be said for music/media sales and distribution.

    But I think consumer electronics is a different animal. Y'know, there's a lot of things you can buy online these days, and in many cases, cheaper than at a brick-n-mortar store even with postage/shipping costs figured in. But how do you seperate the advertising hype from the real deal? The bottom line is that when it comes to electronics shopping, people still wants to get their hands on a product and try it out for themselves.

    Go to Sears or Best Buy's TV section. People shopping for their new home theater centerpiece are picky, comparing the picture quality from this model of LG, to that one from Toshiba, to this one from Sony, and on and on and on. You can't do that online, can you?

    How do you get people excited enough about 3DTV technology that they seriously think about eventually buying it one day? How do you place the latest toys and games into the hands of kids so that they start nagging mom-and-dad from now until Xmas eve? If the manufacturers aren't asking themselves these questions now, they should. There's a lot of things that online retailers are not able to do, especially when it comes to new product sales.

    The problem for the electronic superstores or the traditional department stores is this. There are a lot of consumers who go to the stores, where they try out and compare the products. They may even spend time querying the salespeople about this question and that. But after all that,.... they end up going home and buying the same product online from a cut-rate internet retailer whose overhead costs are lower and don't have any knowledgeable salespeople on their payroll.

    Knowing this, I think the leading manufacturers need to think about ways to support and protect the bricks-and-mortar stores. If not, they'll only be hampering the distribution and sales of new products down the road.
    Last edited by Frankie's Market; September 22nd, 2011 at 10:21 AM.
    This post may contain an opinion that may conflict with your opinion. Do not take it personal. Polite discussion of difference of opinion is welcome.

  11. #11

    Default Re: Best Buy financial troubles

    The best merchants know and respect their customer base. An above average merchant may evaluate products before a customer makes a disappointing purchase. This process will indeed add a little to overhead costs, but the thought of loyal and repeat customers gives considerable peace of mind.

  12. #12

    Default Re: Best Buy financial troubles

    Quote Originally Posted by Frankie's Market View Post
    Knowing this, I think the leading manufacturers need to think about ways to support and protect the bricks-and-mortar stores.
    Not sure how much they can do legally.

    OTOH, the bigger stores could use an old trick from the past: Special order a unique model. Those were the stores that could advertise "guaranteed lowest price in town" - because they were the only place in town with that exact model number.

    Seems like something Sears could do - they do it already with their "Kenmore" line of products.

    The downside of course is that there will be fewer on-line reviews for that particular model.

  13. #13

    Default Re: Best Buy financial troubles

    Quote Originally Posted by Frankie's Market View Post
    Knowing this, I think the leading manufacturers need to think about ways to support and protect the bricks-and-mortar stores.
    Quote Originally Posted by GeckoGeek View Post
    Not sure how much they can do legally.
    There are ways. Offering exclusive manufacturer rebates of products purchased from select retailers. Giving bricks-n-mortar stores free accessories and/or software that is packaged seperately from the main product.

    Of course, such incentives are unnecessary for manufacturers that have their own international network of stores. And I can count such companies on,.... uhhh,... well,.... okay! Just Apple.

    For every other brand, they need the superstores, just as the superstores need them.
    This post may contain an opinion that may conflict with your opinion. Do not take it personal. Polite discussion of difference of opinion is welcome.

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    Default Re: Best Buy financial troubles

    Quote Originally Posted by mel View Post
    True, but since Apple controls the entire market for iOS it has remained more profitable than the dozens of makers of Android phones and devices. Android phones are a huge success, I'll readily admit... jury is still out for Android devices such as Galaxy tab, etc. Perhaps Amazon may be able to catch Apple in the tablet market with their Android based device married to its Kindle software - books and perhaps other media content - movies and music.
    I don't think Google gives a rip whether one handset manufacturer makes X amount of dollars more than the other. As long as all the major carriers (Verizon, AT&T, Sprint and T-Mobile) are selling Android faster than they can order it, Google cleans house. Remember how Microsoft became a giant. Nothing to do with hardware. All about the OS. The difference is, Google makes money every time someone buys an app from the Android market. So do the carriers, or at least Verizon does. Pure profit. How about Apple? They are only on two carriers so far. Plus at this point, they have less apps than Android due to Apple's strict developer policy.

    In addition, Google is hedging its bets. Now that Motorola's mobile phone/tablet division is its own company (Motorola Mobility), Google has decided to purchase the company. Smart move. Can't say the same for Apple which is wasting hundred$ of million$ battling patent lawsuits from Samsung, Motorola and many others. Maybe with Steve Jobs gone, they will finally see the light.

    We can’t be so fixated on our desire to preserve the rights of ordinary Americans.

    — U.S. President Bill Clinton
    USA TODAY, page 2A
    11 March 1993

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    Default Re: Best Buy financial troubles

    You probably don't like Apple and that's fine. I don't do any cell phones and except for the Apple iPod Touch, which I only got because it can do everything the iPhone does except be a phone and not have any monthly bill connected to it. I don't like monthly bills and I don't find owning a cell phone a very compelling prospect. I have lived without one all my life and certainly don't need or want one as I head into the waning years of life.

    As for iOS, Android, Blackberry and all the other OS's for the cell phone space I don't really care which one shakes out to be the leader. Apple will always have their customers and those who hate Apple can stick with Android or whatever they want to use. Fine. Just like the old Mac vs. PC thing. Both platforms exist long after their introductions and cater to their respective markets. Fine.
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  16. #16

    Default Re: Best Buy financial troubles

    Somewhere below the Martian surface are almost certainly some caves. Even Mauna Kea has a few on the Hamakua side..Within those ancient lava tubes are probably to be found any life still remaining there. Probably fungal or bacterial in nature. The seasonal venting of large amounts of methane from certain vents hints at possible large amounts of still extant primitive life forms.
    there are many decent views of Mars at www.esa.int
    Last edited by lensperson; September 25th, 2011 at 11:43 PM. Reason: added cool link

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