Best Buy's Amazonian Nightmare
Where did you buy that snazzy Zenith 19″ or VCR however many years ago? Circuit City? Crazy Eddie? Nobody Beats the Wiz? Service Merchandise? Incredible Universe? The list of departed—dearly or otherwise—big boxes that once dominated the consumer electronics landscape is endless. (Not to mention the mass extinction of regional players such as Lechmere, Tweeter, Sound Advice, and Kaufman & Roberts.) So you’d think the last man standing in the field, Best Buy, the world’s top electronics retailer, would be living large right about now. Instead, with its stock at a multiyear low, the Richfield (Minn.) retailer today announced it will be shutting 50 of its 1,100 stores amid a revenue shortfall. Management promised to scale back on discounts, effectively ceding low-margin sales to rivals. Best Buy also says it plans to slash $800 million in costs over the next three years.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.