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Best Buy: Grasping At Straws
-As part of yet another restructuring plan, the company intends to close fifty of its big box stores and fire an additional 400 corporate staff. (Best Buy currently operates 2,900 retail locations worldwide.)
-Revenue at established stores fell 2.4% last year, following a 4.7% decline in the previous year. Overall, the company lost $1.23 billion last year, or $3.36 per share.
-investors dumped the stock, sending it down 8% in early trading today. (It closed on Thursday down almost 6%.)
-Best Buy CEO Brian Dunn: little innovation [in] many of the large traditional consumer electronics categories such as television, PCs and gaming.
-consumers have enjoyed greater price transparency and ease of costs shopping.
-we knew we had to accelerate our cost reduction efforts, adjust our sales mix and significantly improve on the experience we were delivering for our customers.
-most uncertain consumer and economic environment we’ve ever experienced.
-customers now know too much to take advantage of them. dwindling margins on TVs, computers, and mobile devices. some online retailers don’t collect state sales tax, or have more forgiving return policies.
-high-speed mobile broadband, cloud computing, tablet devices and the modular nature of app stores have utterly changed not only which products consumers buy, but how they shop for them, upgrade them, service them, and replace them.
-hese technologies are the foundation for a new generation of killer apps, a platform that extends vertically and horizontally in unpredictable directions but at accelerating speeds.
- those technologies are exploited by virtual retailers, notably Amazon. E-commerce, perhaps the leading cause of decline for Best Buy, started out simply as a cheaper alternative, offering customers a faster, more convenient, and less-expensive way to buy.
-Virtual

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