Please someone tell me how bby will turn things around? Most people buy what they have to offer online. DVDs are on their way out. I doubt they're selling a lot of guitars with their new music division. These types of stores are going to become dinosaurs. I think people go to best buy to check out equipment, then order it online for an inevitable lower price. I think this stock is going to keep dropping.
I'd love to hear any opposing points of view. It just doesn't look good to me.
The Wall Street Journal reported that Best Buy had the 3rd most visited web site over the Thanksgiving weekend. Sales are not yet reported for that time but will be on 1/11/13. With $50 billion in annual revenues and a market cap of less than $4 billion, a little improvement in the business model to boost bottom line earnings and the market cap jumps! I am sure Richard Schulze knows this... he just has to convince some private equity firms to help with the financing.
Best Buy simply don't have any competition at the street level. Amazon cheats due to the fact that they will sell its mother on a box if it is necessary. There is no other electronic store like best buy period and when the sale tax comes in effect amazon will get lower and lower.
There are lots of people who won't buy online because they like going to the store and like the person to person interaction, others are old fashion and don't own computers, others do own computers but like going anyway because the want to have the product right away and returning the product is always easier. They are thousand of reasons, I think that the turnaround of the stock depends on management and leadership not the fact of competition because BBY is more capable than its competition due to accessibility. I like Best Buy and even after looking in different places I always end up in Best Buy because when you go the cheap route you end up paying more.