Even as Best Buy insists it can get out of its current predicament, competitors are circling, as everyone tries to prove one point: that electronics stores can thrive.
Best Buy is closing 50 of its big-box stores, and its sales at stores open at least a year are falling. Brian J. Dunn, its chief executive, recently resigned after the board found he was having an inappropriate relationship with a subordinate. Richard Schulze, who founded the company in 1966, said this month that he would leave the board immediately, a year ahead of schedule, and is trying to sell his 20.1 percent stake in the company.
Now, Walmart is running ads going after Best Buy consumers; a Chicago-area competitor is expanding amusement park attractions in its store to lure shoppers; and Target is selling Apple products ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Â all in an effort to make buying electronics in a store appealing again. The trends are not favorable. People are increasingly buying electronics online, even if they go to stores to examine product features. The price of televisions is sliding, and CDs and DVDs are not nearly as popular as they once were. Retailers are stuck with lots of space as products shrink or go digital. And because many manufacturers are not allowing retailers to advertise below minimum prices for their products, stores cannot publicize sale prices the way they once did… Read More