Best Buy to cut costs, open and close stores
05-09-12, 10:11 PM
#126
DVD Talk Legend
Re: Best Buy to cut costs, open and close stores
How can they downsize a store that they're leasing? They're going to spend even more money remodeling already existing outlets?
05-10-12, 12:14 AM
#127
DVD Talk Hero
Re: Best Buy to cut costs, open and close stores
That store did have one. Haven't been in since construction started but it sounds like they are just making the Mangnolia section bigger.
05-18-12, 12:31 PM
#128
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Re: Best Buy to cut costs, open and close stores
Too bad to see that Omaha store closing. The guy who handled my video game trades was super cool. It is kind of a weird location though. You have to try kind of hard to get there.
08-10-12, 05:52 AM
#129
DVD Talk Hero
Re: Best Buy to cut costs, open and close stores
Would Richard Schulze's New Strategy Make Best Buy More Like Apple?
Will they be able to turn it around, or is this the beginning of the end?
According to the Wall Street Journal, part of Best Buy (NYSE: BBY) founder Richard Shulze’s turnaround plan is to compete with Apple (NASDAQ: AAPL) on customer service. Shulze has offered to take the struggling retailer private at between $24 and $26 per share. Currently, BBY is trading at just under $20. The proposal is informal, and many on Wall Street are skeptical that he could obtain the necessary financing to buy the company. If Schulze is successful in his bid, it would be the largest go-private deal since the financial crisis.
The Journal is reporting that potential partners in the deal could include private equity firms Apollo Global Management, KKR & Co., Leonard Green & Partners and TPG Capital, among others. Mr. Schulze indicated as much when he said that he has had discussions with “leading private-equity firms,” about the potential transaction, but he did not mention any specific names.
Currently, the Best Buy founder owns one fifth of the company, but he no longer has an official role with the company after relinquishing his chairmanship in June. What is interesting about Mr. Schulze’s plans for the company is that they are in direct opposition to those of the current management team. Best Buy has been struggling with very weak top-line growth in recent years, and the this has taken a toll on the share price.
The stock has lost more than 54 percent of its value over the last five years as the company’s business model has come under scrutiny from investors. Rather than supporting Best Buy’s current strategy of cutting costs and downsizing the business, Schulze’s plan calls for the company to cut prices while avoiding major cost-cutting. According to the Journal’s report, Schulze believes that the current downsizing plans could put the company out of business.
He thinks that in order to compete with the likes of Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL), Best Buy will have to improve its value proposition in the eyes of consumers, and that means lower prices and premium service. Of course, this strategy could be costly in the near-term, and may never work out.
What seems certain is that Schulze’s ideas for the company would be nearly impossible to implement if Best Buy stays a public company. Not only does management appear to disagree with the founder, but it is unlikely shareholders would tolerate such a risky plan that would surely be unprofitable in the near-term.
It seems as if Best Buy will continue to aggressively cut costs as the battle for the company plays out. According to a Wall Street Journal source, the company will announce in the coming weeks that it plans to cut costs even more by selling space in excess of 1 million square feet and closing more stores than the 50 it has already announced.
The company’s board of directors has told Mr. Schulze that it wants to wait until after its earnings announcement on August 21 to revisit the proposal. Meanwhile, the details of a potential deal such as partners nad financing will have to be ironed out before the market actually takes the offer seriously.
While Mr Schulze’s bankers at Credit Suisse (NYSE: CS) said that they are “highly confident” that they can secure $7 billion in funding for the transaction through debt, Schulze and his potential partners would still have to come up with around $3 billion in cash.
The Journal is reporting that potential partners in the deal could include private equity firms Apollo Global Management, KKR & Co., Leonard Green & Partners and TPG Capital, among others. Mr. Schulze indicated as much when he said that he has had discussions with “leading private-equity firms,” about the potential transaction, but he did not mention any specific names.
Currently, the Best Buy founder owns one fifth of the company, but he no longer has an official role with the company after relinquishing his chairmanship in June. What is interesting about Mr. Schulze’s plans for the company is that they are in direct opposition to those of the current management team. Best Buy has been struggling with very weak top-line growth in recent years, and the this has taken a toll on the share price.
The stock has lost more than 54 percent of its value over the last five years as the company’s business model has come under scrutiny from investors. Rather than supporting Best Buy’s current strategy of cutting costs and downsizing the business, Schulze’s plan calls for the company to cut prices while avoiding major cost-cutting. According to the Journal’s report, Schulze believes that the current downsizing plans could put the company out of business.
He thinks that in order to compete with the likes of Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL), Best Buy will have to improve its value proposition in the eyes of consumers, and that means lower prices and premium service. Of course, this strategy could be costly in the near-term, and may never work out.
What seems certain is that Schulze’s ideas for the company would be nearly impossible to implement if Best Buy stays a public company. Not only does management appear to disagree with the founder, but it is unlikely shareholders would tolerate such a risky plan that would surely be unprofitable in the near-term.
It seems as if Best Buy will continue to aggressively cut costs as the battle for the company plays out. According to a Wall Street Journal source, the company will announce in the coming weeks that it plans to cut costs even more by selling space in excess of 1 million square feet and closing more stores than the 50 it has already announced.
The company’s board of directors has told Mr. Schulze that it wants to wait until after its earnings announcement on August 21 to revisit the proposal. Meanwhile, the details of a potential deal such as partners nad financing will have to be ironed out before the market actually takes the offer seriously.
While Mr Schulze’s bankers at Credit Suisse (NYSE: CS) said that they are “highly confident” that they can secure $7 billion in funding for the transaction through debt, Schulze and his potential partners would still have to come up with around $3 billion in cash.
08-10-12, 09:08 PM
#131
DVD Talk Legend
Re: Best Buy to cut costs, open and close stores
I like Schulze’s idea of lower prices and premium service, few companies in this country realize that if they just lowered their prices a little and treated customers like real human beings instead of excrement, more people would be inclined to buy from them. Best Buy's prices on the software that goes into the hardware they sell was much higher than it needed to be. I for one was always more inclined to buy DVDs elsewhere because I could always get them cheaper somewhere else (unless they had a sale going or something). By the same token I never liked their price-matching unless of course they would want to add another 10% off to the price match. If I wanted to pay the same amount of money that I could have picked it up for at another store, I'd have just bought it at the other store. Give me an incentive to buy it there! Of course investors aren't going to like that idea because they think like all the other business people in this country, that it has to have a high price tag on it in order for them to make any money. What they don't realize is that the higher they jack the prices, the fewer people will be inclined to buy.
Just my humble opinion, -kd5-
Just my humble opinion, -kd5-
08-10-12, 11:57 PM
#132
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Re: Best Buy to cut costs, open and close stores
I don't know if this is a glitch or what but I was just on their site and did a store locator and at least three stores near me aren't listed on their site anymore.
Gone are stores in Joliet, Bolingbrook and Downers Grove IL..
I hope that this is just a glitch and not an indication that they just closed the stores unannounced.
Getting to the general topic of Best Buy, if I was them I would get rid of the major appliances section.
Gone are stores in Joliet, Bolingbrook and Downers Grove IL..
I hope that this is just a glitch and not an indication that they just closed the stores unannounced.
Getting to the general topic of Best Buy, if I was them I would get rid of the major appliances section.
08-13-12, 08:36 AM
#134
DVD Talk Legend
Re: Best Buy to cut costs, open and close stores
I don't know if this is a glitch or what but I was just on their site and did a store locator and at least three stores near me aren't listed on their site anymore.
Gone are stores in Joliet, Bolingbrook and Downers Grove IL..
I hope that this is just a glitch and not an indication that they just closed the stores unannounced.
Getting to the general topic of Best Buy, if I was them I would get rid of the major appliances section.
Gone are stores in Joliet, Bolingbrook and Downers Grove IL..
I hope that this is just a glitch and not an indication that they just closed the stores unannounced.
Getting to the general topic of Best Buy, if I was them I would get rid of the major appliances section.
08-13-12, 11:41 AM
#135
DVD Talk Hero
Re: Best Buy to cut costs, open and close stores
I like Schulze’s idea of lower prices and premium service, few companies in this country realize that if they just lowered their prices a little and treated customers like real human beings instead of excrement, more people would be inclined to buy from them. Best Buy's prices on the software that goes into the hardware they sell was much higher than it needed to be. I for one was always more inclined to buy DVDs elsewhere because I could always get them cheaper somewhere else (unless they had a sale going or something). By the same token I never liked their price-matching unless of course they would want to add another 10% off to the price match. If I wanted to pay the same amount of money that I could have picked it up for at another store, I'd have just bought it at the other store. Give me an incentive to buy it there! Of course investors aren't going to like that idea because they think like all the other business people in this country, that it has to have a high price tag on it in order for them to make any money. What they don't realize is that the higher they jack the prices, the fewer people will be inclined to buy.
Just my humble opinion, -kd5-
Just my humble opinion, -kd5-
08-13-12, 11:58 AM
#136
DVD Talk Hero
Re: Best Buy to cut costs, open and close stores
I thought a lot of that "loss leader" pricing on DVDs meant that they made very little if anything (maybe even a loss, per the name) on the deep 1st week sales, and that they're meant to get people in the stores. So if they just cut prices and you went and bought just those DVDs there, that's not helping the business at all.
08-13-12, 02:07 PM
#137
DVD Talk Gold Edition
Re: Best Buy to cut costs, open and close stores
I have to agree with the idea of putting money into service. And they should also put money into their employees as well to get that service. Having worked retail for years, companies refuse to pay people what they are worth or treat them like decent human beings. There is no incentive to put your full ability into a job and even the most devoted employee will eventually not care if they don't get time off, decent pay and respect. As a customer, I'll go out of my way to go to stores with great customer service and people who know their stuff. Best Buy has not been a go to store for this for years. Unfortunately, in my area, there are few places to get electronics anymore so I find myself still having to go there, but my purchases have definitely gone down.
I really wish, like others, that corporations would remember basic business principles. The higher the price, the less you sell. You may make more on one item, but in the long run you'll make more by selling more at a lesser price. And by putting money into your employees, you're putting money into your customers and getting them to feel like the store is encouraging them to shop there rather than putting up with them. The happier the shopper, the more they spend.
I really wish, like others, that corporations would remember basic business principles. The higher the price, the less you sell. You may make more on one item, but in the long run you'll make more by selling more at a lesser price. And by putting money into your employees, you're putting money into your customers and getting them to feel like the store is encouraging them to shop there rather than putting up with them. The happier the shopper, the more they spend.
08-20-12, 11:13 AM
#138
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Re: Best Buy to cut costs, open and close stores
I have to agree with the idea of putting money into service. And they should also put money into their employees as well to get that service. Having worked retail for years, companies refuse to pay people what they are worth or treat them like decent human beings. There is no incentive to put your full ability into a job and even the most devoted employee will eventually not care if they don't get time off, decent pay and respect. As a customer, I'll go out of my way to go to stores with great customer service and people who know their stuff. Best Buy has not been a go to store for this for years. Unfortunately, in my area, there are few places to get electronics anymore so I find myself still having to go there, but my purchases have definitely gone down.
I really wish, like others, that corporations would remember basic business principles. The higher the price, the less you sell. You may make more on one item, but in the long run you'll make more by selling more at a lesser price. And by putting money into your employees, you're putting money into your customers and getting them to feel like the store is encouraging them to shop there rather than putting up with them. The happier the shopper, the more they spend.
I really wish, like others, that corporations would remember basic business principles. The higher the price, the less you sell. You may make more on one item, but in the long run you'll make more by selling more at a lesser price. And by putting money into your employees, you're putting money into your customers and getting them to feel like the store is encouraging them to shop there rather than putting up with them. The happier the shopper, the more they spend.
Unfortunately, people are not valued any more. Just the way it is with a big company.In other news:
http://money.msn.com/business-news/a...20&id=15466132
Best Buy hires Joly as new CEO
August 20, 2012 8:25 AM ET.
By ANNE D'INNOCENZIO
NEW YORK (AP) - Best Buy Co. has tapped Hubert Joly, the former head of global hospitality company Carlson and turnaround expert, as the nation's largest consumer electronics chain's new CEO and president.
The announcement, made Monday, comes after the ailing retailer said Sunday that its offer to advance talks with company co-founder Richard Schulze on his takeover bid was rejected.
Best Buy says Joly, who is French, is expected to take over as CEO in early September when his visa is secured. Carlson, which operates such businesses as Radisson and T.G.I Friday's, announced Sunday that Joly resigned from that company.
Shares were down more than 4 percent in premarket trading as investors realized that a major overhaul to make Best Buy more nimble in a rapidly shifting climate probably won't happen until next year when the CEO gets more settled. Investors are hoping to learn more of Best Buy's plan to turn around its business Tuesday when it reports its second-quarter financial results.
Investors may have also been disappointed that Best Buy didn't pick a retail executive.
"Joly is a rogue agent," said Brian Sozzi, analyst at research firm NBG Productions. "He comes in and fixes companies and then leaves." He added that investors won't learn of a new turnaround plan until after the holiday season.
Joly succeeds Mike Mikan, a board member who has served as interim CEO since April when former CEO Brian Dunn left Best Buy because of what the company called an improper relationship with an employee.
"Hubert was an outstanding candidate for this position and I am confident he will be a great fit for Best Buy," Hatim Tyabji, chairman of Best Buy's board, said in a statement. "Hubert's range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies."
Over the past 15 years, Joly has developed a track record of successful turnarounds and growth in the media, technology and service sectors, Best Buy said.
In the media sector, Joly led the restructuring and growth of Vivendi's video game's business, now part of Activision Blizzard, from 1999 to 2001. He later oversaw the integration of Universal and Vivendi's media assets in the U.S. and was then part of the team that led the restructuring of Vivendi in 2002 to 2004.
In the technology sector, Joly spearheaded the turnaround of EDS, now part of HP, in France from 1996 to 1999. In the service sector, he has led the transformation of Carslon Wagonlit Travel into the global leader in corporate travel management. In 2008, he became the CEO of CWT's parent, Carlson, based in Minneapolis, whose brands employ more than 170,000 people in 150 countries.
As CEO of Carlson, Joly spearheaded a strategy to bolster the company's leadership position across its businesses, including its restaurant division with more than 900 T.G.I. Friday's restaurants and its hotel division with more than 1,000 hotels around the world.
Best Buy is trying to avoid the fate of its rival Circuit City, which went bankrupt in 2009, partly because of changing shopper habits.
Best Buy has been shrinking store size and focusing on its more-profitable products such as mobile phones. It's also trying to combat the so-called "showrooming" of its stores — when people browse at Best Buy but purchase electronics goods elsewhere, especially online.
In March, it announced a major restructuring that includes closing 50 stores, cutting 400 corporate jobs and trimming $800 million in costs.
Dunn left in April amid an investigation that he had an improper relationship with a 29-year-old female employee. Since that departure, interim Mikan has made strong statements about how he plans to restructure the company, focusing on services and revamping stores.
In early July, Best Buy said it would lay off 600 staffers in its Geek Squad technical support division and 1,800 other store workers.
Earlier this month, Schulze, Best Buy's largest shareholder with a 20 percent stake, made a takeover offer for the chain, offering $24 to $26 per share. Best Buy said it was considering the offer, which values the company at $8.84 billion.
Schulze said Thursday that he was committed to his offer for the electronics retailer and has heard from a number of private equity firms prepared to make "significant commitments."
But Best Buy and Schulze went back and forth in public announcements over the weekend.
According to Best Buy's statement Sunday, it spelled out certain terms for acquisition talks to proceed. They included a 60-day deadline for the founder to bring forward a fully financed proposal.
"The board showed great flexibility in the details around how an agreement with Mr. Schulze could be implemented so as not to limit his ability to make a definitive proposal for the company that was in the best interest of the shareholders," according to Sunday's statement from Best Buy. "Mr. Schulze did not accept the company proposal."
In response, Schulze issued his own statement: "I am disappointed and surprised by the Best Buy Board's abrupt termination of our discussions. For the record, we engaged in good-faith negotiations with Best Buy's Board and its advisors over the weekend and expected to conclude this matter before the company's earnings announcement early this week."
Best Buy shares slipped 87 cents to $19.40 in premarket trading after closing at $20.27 on Friday. During the past 52 weeks, shares have been trading between $16.97 and $28.53.
August 20, 2012 8:25 AM ET.
By ANNE D'INNOCENZIO
NEW YORK (AP) - Best Buy Co. has tapped Hubert Joly, the former head of global hospitality company Carlson and turnaround expert, as the nation's largest consumer electronics chain's new CEO and president.
The announcement, made Monday, comes after the ailing retailer said Sunday that its offer to advance talks with company co-founder Richard Schulze on his takeover bid was rejected.
Best Buy says Joly, who is French, is expected to take over as CEO in early September when his visa is secured. Carlson, which operates such businesses as Radisson and T.G.I Friday's, announced Sunday that Joly resigned from that company.
Shares were down more than 4 percent in premarket trading as investors realized that a major overhaul to make Best Buy more nimble in a rapidly shifting climate probably won't happen until next year when the CEO gets more settled. Investors are hoping to learn more of Best Buy's plan to turn around its business Tuesday when it reports its second-quarter financial results.
Investors may have also been disappointed that Best Buy didn't pick a retail executive.
"Joly is a rogue agent," said Brian Sozzi, analyst at research firm NBG Productions. "He comes in and fixes companies and then leaves." He added that investors won't learn of a new turnaround plan until after the holiday season.
Joly succeeds Mike Mikan, a board member who has served as interim CEO since April when former CEO Brian Dunn left Best Buy because of what the company called an improper relationship with an employee.
"Hubert was an outstanding candidate for this position and I am confident he will be a great fit for Best Buy," Hatim Tyabji, chairman of Best Buy's board, said in a statement. "Hubert's range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies."
Over the past 15 years, Joly has developed a track record of successful turnarounds and growth in the media, technology and service sectors, Best Buy said.
In the media sector, Joly led the restructuring and growth of Vivendi's video game's business, now part of Activision Blizzard, from 1999 to 2001. He later oversaw the integration of Universal and Vivendi's media assets in the U.S. and was then part of the team that led the restructuring of Vivendi in 2002 to 2004.
In the technology sector, Joly spearheaded the turnaround of EDS, now part of HP, in France from 1996 to 1999. In the service sector, he has led the transformation of Carslon Wagonlit Travel into the global leader in corporate travel management. In 2008, he became the CEO of CWT's parent, Carlson, based in Minneapolis, whose brands employ more than 170,000 people in 150 countries.
As CEO of Carlson, Joly spearheaded a strategy to bolster the company's leadership position across its businesses, including its restaurant division with more than 900 T.G.I. Friday's restaurants and its hotel division with more than 1,000 hotels around the world.
Best Buy is trying to avoid the fate of its rival Circuit City, which went bankrupt in 2009, partly because of changing shopper habits.
Best Buy has been shrinking store size and focusing on its more-profitable products such as mobile phones. It's also trying to combat the so-called "showrooming" of its stores — when people browse at Best Buy but purchase electronics goods elsewhere, especially online.
In March, it announced a major restructuring that includes closing 50 stores, cutting 400 corporate jobs and trimming $800 million in costs.
Dunn left in April amid an investigation that he had an improper relationship with a 29-year-old female employee. Since that departure, interim Mikan has made strong statements about how he plans to restructure the company, focusing on services and revamping stores.
In early July, Best Buy said it would lay off 600 staffers in its Geek Squad technical support division and 1,800 other store workers.
Earlier this month, Schulze, Best Buy's largest shareholder with a 20 percent stake, made a takeover offer for the chain, offering $24 to $26 per share. Best Buy said it was considering the offer, which values the company at $8.84 billion.
Schulze said Thursday that he was committed to his offer for the electronics retailer and has heard from a number of private equity firms prepared to make "significant commitments."
But Best Buy and Schulze went back and forth in public announcements over the weekend.
According to Best Buy's statement Sunday, it spelled out certain terms for acquisition talks to proceed. They included a 60-day deadline for the founder to bring forward a fully financed proposal.
"The board showed great flexibility in the details around how an agreement with Mr. Schulze could be implemented so as not to limit his ability to make a definitive proposal for the company that was in the best interest of the shareholders," according to Sunday's statement from Best Buy. "Mr. Schulze did not accept the company proposal."
In response, Schulze issued his own statement: "I am disappointed and surprised by the Best Buy Board's abrupt termination of our discussions. For the record, we engaged in good-faith negotiations with Best Buy's Board and its advisors over the weekend and expected to conclude this matter before the company's earnings announcement early this week."
Best Buy shares slipped 87 cents to $19.40 in premarket trading after closing at $20.27 on Friday. During the past 52 weeks, shares have been trading between $16.97 and $28.53.
08-21-12, 10:51 AM
#139
DVD Talk Hero
Re: Best Buy to cut costs, open and close stores
91% is quite a drop in profits...
http://www.latimes.com/business/mone...,3651703.story
http://www.latimes.com/business/mone...,3651703.story
On Tuesday, the company said its net income in its second quarter, which ended Aug. 4, slid 91% to $12 million, or 4 cents a share, from $128 million, or 34 cents a share, during the same period last year.
Revenue dropped 3% to $10.5 billion. The company’s stock sank to nine-year lows, plummeting as far as $16.23 a share in morning trading after closing at $18.16 a share on Monday.
Revenue dropped 3% to $10.5 billion. The company’s stock sank to nine-year lows, plummeting as far as $16.23 a share in morning trading after closing at $18.16 a share on Monday.
08-21-12, 11:52 AM
#140
DVD Talk God
Re: Best Buy to cut costs, open and close stores
To be fair, they took a huge write off (something like $90+ million) for closing stores, so their profit would've been not that far off from last year.
08-21-12, 12:52 PM
#141
DVD Talk Hero
Re: Best Buy to cut costs, open and close stores
http://www.businessweek.com/news/201...t-income-falls
Net income fell 91 percent to $12 million, or 4 cents a share, from $128 million, or 34 cents, a year earlier, the Richfield, Minnesota-based company said today in a statement. Excluding restructuring charges and other items, profit was 20 cents a share. Analysts’ average estimate was 31 cents.
08-22-12, 02:23 PM
#142
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Re: Best Buy to cut costs, open and close stores
I'm late to the discussion but some thoughts from my personal experience. I used to be there at Best Buy every Tuesday for new releases on DVD, and I was at the point where I'd gotten the gold Rewards card for having spent such a ridiculous amount of money at Best Buy.
The atmosphere just changed and I felt like an asset rather than a valued customer. I kept hearing stories of them refusing warranty coverages for any excuse, etc. You could tell that they crunched their numbers and decided it was more cost-effective to visibly take as much money as possible.
Earlier this year we were shopping around for a new TV, and the one we liked was priced exactly the same at Best Buy and two other stores. So we asked the salesperson why should we buy here. He responded with a snarky smile "Because you're already in this store!" That may be the overall strategy that they have, but that's not something you should repeat to the customer. We went to a different store just on principal.
The atmosphere just changed and I felt like an asset rather than a valued customer. I kept hearing stories of them refusing warranty coverages for any excuse, etc. You could tell that they crunched their numbers and decided it was more cost-effective to visibly take as much money as possible.
Earlier this year we were shopping around for a new TV, and the one we liked was priced exactly the same at Best Buy and two other stores. So we asked the salesperson why should we buy here. He responded with a snarky smile "Because you're already in this store!" That may be the overall strategy that they have, but that's not something you should repeat to the customer. We went to a different store just on principal.
08-22-12, 04:24 PM
#143
DVD Talk Legend
Re: Best Buy to cut costs, open and close stores
Earlier this year we were shopping around for a new TV, and the one we liked was priced exactly the same at Best Buy and two other stores. So we asked the salesperson why should we buy here. He responded with a snarky smile "Because you're already in this store!" That may be the overall strategy that they have, but that's not something you should repeat to the customer. We went to a different store just on principal.
08-23-12, 12:50 PM
#144
DVD Talk Legend
08-23-12, 05:43 PM
#145
DVD Talk Legend
Re: Best Buy to cut costs, open and close stores
If I was Best Buy, first thing I would do would be to revamp the Geek Squad. Here's what I would do:
- Go back to customer service.
- Hire actual, trained technicians... and pay them like they should.
- Pay for technicians or current Geek Squad employees to get certified in various software and hardware repairs.
- Most repairs would be done in-house. Under rare circumstances, those would then be shipped to whomever Best Buy ships them to.
- When parts are not in-stock (i.e. laptop batteries, chargers, etc.), expedite the shipping on them rather than have the customer wait two-to-three weeks. In fact, offer to ship the product to the customer's house.
- Make specific Best Buy locations, based upon sales volume, Apple Authorized Service Providers.
- Partner with specific hardware smartphone and tablet manufactures to have warranty replacements on stock.
If you ask me where to get my Apple products fixed, I'd answer back either the Apple store or the few Apple Authorized Service Providers in my area.
If you ask me where I could get my wife's Sony Vaio fixed, I'd have no idea. If you were to make Best Buy a credible and trustworthy place to get your computer fixed rather than a scam market, you'd see an increase in computer sales right away.
08-23-12, 10:06 PM
#146
DVD Talk Limited Edition
Re: Best Buy to cut costs, open and close stores
I'm not sure why BB is going to suddenly hire expert people when Circuit City couldn't even bother to keep theirs.
The sad thing is, I was saying that BB should turn more customer focused 10+ years ago...when they were still doing great.
But nobody wants to listen when you can maximize even more profits.
The sad thing is, I was saying that BB should turn more customer focused 10+ years ago...when they were still doing great.
But nobody wants to listen when you can maximize even more profits.
08-27-12, 03:58 AM
#147
DVD Talk Hero
Re: Best Buy to cut costs, open and close stores
From the corporate perspective, they can't understand how the people at the bottom of the food chain are anything but interchangeable. It's like a restaurant not knowing the difference between a knowledgeable waiter and a busboy who picks up dishes. (Welcome to Applebee's!)
08-27-12, 06:26 AM
#148
DVD Talk Legend
Re: Best Buy to cut costs, open and close stores
I thought a lot of that "loss leader" pricing on DVDs meant that they made very little if anything (maybe even a loss, per the name) on the deep 1st week sales, and that they're meant to get people in the stores. So if they just cut prices and you went and bought just those DVDs there, that's not helping the business at all.
Last edited by kd5; 08-27-12 at 09:44 AM.
08-27-12, 10:47 PM
#149
DVD Talk Limited Edition
Re: Best Buy to cut costs, open and close stores
I know this. I remember being told I should sell $800 worth of CD storage *an hour* all while making a measly $6.50. If I'm gonna bust my butt to make these ludicrous goals, I need more motivation than hearing the phrase "well, it's your job" followed by some shit eating grin.
08-28-12, 08:32 PM
#150
DVD Talk Legend
Re: Best Buy to cut costs, open and close stores
The latest survey/report from The NPD Group shows that 60% of customers who make an appointment at an Apple Store's Genius Bar are likely to return to purchase an Apple product. Apple has always puts its customers first and there has always been a return on investment. Just look at their dedicated and loyal fan base. If not that, look at the Microsoft Store. They pretty much took Apple's retail playbook and ran with it. I've never been inside a Microsoft Store, but the reviews on Yelp from all of the various locations are all glowing unlike that of a Best Buy.
I hate Fry's, but I'd rather shop there than a Best Buy. Yeah, a lot of Fry's staff works on commission and most of their employees are trying to upsell you despite knowing nothing about the products. However, you can't beat the quantity of products they have under one roof and their pricing (in a retail setting). Hell, they even price match Amazon and Newegg. If you can't wait for a product to be shipped and mailed to you, Fry's is the way to go. If Best Buy was more like Fry's, it would be a better experience than what Best Buy currently offers.