"In an effort to maximize secondary purchases, Hubert Joly plans to rearrange the candy sections of 800 Best Buy stores, placing all chocolate items toward the rear of the checkout lines. He feels this will address the 'temptation effect', where a customer sees the candy but does not have time to make a satisfying choice." Typically, when this happens, the customer leaves the store and visits a nearby store for the candy selection of their choice.
Good for a 1 point runup, or 4% company appreciation.
He will eliminate it all together and replace it with lube and condoms. They will be available for long-term shareholders after the next few earnings reports once the cost cutting is done. Who knows what Joly will think of next but BBY is becoming a flea market whether it works time will tell. Myself I don't see this creating any big demand or spike in profits. I think their online is their key going forward but there are so many electronics discounters out there it can only hurt margins going forward which showed up in the last report.
Excellent idea! Big selection of lubes and condoms, which typically carry a higher margin than the average candy. As far as sales, at best they will shift from Mac products to Microsoft driven products, essentially cancelling one another out.