Best Buy US to close 50 stores; blames Apple + Amazon! BB CEO resigns Apr 10, 2012!

[iridium001]

http://online.wsj.com/article/SB10001424052702303404704577311322427071212.html?r u=yahoo&mod=yahoo_hs

Because, you know, Best Buy doesn't sell anything else but Apple products... :facepalm:

"Consumers armed with mobile phones are increasingly using stores as showrooms to check out merchandise they later purchase for less online, a trend greatly benefiting Internet retailers such as Amazon.com Inc. AMZN +1.72%which aren't encumbered by the costs of running physical locations and in many cases don't have to collect sales tax. Meanwhile Apple Inc.'s AAPL -1.26%phones and tablets, showcased in its own namesake stores, have eroded the status of specialty chains as the one-stop shop for the latest in gadgetry."

I personally hope Future Shop is next, I haven't bought anything major at Future Shop in years, and high prices is why especially with the way the Canadian dollar has been on par for many years now. ;)

Edit:

CEO resigns after 28 years!

http://www.thestar.com/business/article/1158960--best-buy-ceo-resigns?bn=1#article

Beginning of the end a la Circuit City? Or they're making a comeback?

[stanleylai]

Honestly if I see something on best buy or future shop, an it's the same price at amazon I'll buy from amazon

[moulamou]

I prefer buying from a brick and mortar store as I don't usually have the patience to wait but if I do see something cheaper online, I will buy it online.

I believe that online versions of FS and BB should sell their online products for less as they do not have to worry about factors that would affect a B&M store. I think this would help them gain online sales back from Amazon.

[nauru]

Well it's only 50 stores... out of over 4100. Is it really so bad to close the bottom 1% of stores every few years? Some companies fire the bottom 10% of their employees every year.

[bman77]

Well it's only 50 stores... out of over 4100. Is it really so bad to close the bottom 1% of stores every few years? Some companies fire the bottom 10% of their employees every year.

+1

[Geologic]

Didn't sell enough extended warranties I guess

[Insider]

I've never purchased from Amazon, what am I missing? lol

[smartie]

Well it's only 50 stores... out of over 4100. Is it really so bad to close the bottom 1% of stores every few years? Some companies fire the bottom 10% of their employees every year.

I guess it is more like a moral blow to employees and customers. This yr might be 1%, next yr might go 10%.

[Coz4k]

Didn't sell enough extended warranties I guess

+1

[NG]

Well it's only 50 stores... out of over 4100.

Circuit City stared on the road to virtual non-existence (brand is owned by the Tiger Direct parent now) with closing a small number of stores.


Then it grew...

Good riddance to the filth of Best Buy. It's a shame since their Dynex/Insignia brand is great for value priced electronics but the store just isn't worth shopping at anymore.

[Nook]

I personally only buy from stores like Best Buy and Future Shop because that way I can take advantage of their valuable Performance Service Plans to give me peace of mind when I buy expensive electronics. Just bring it in to the experts at the Geek Squad and they'll normally have your device up and running in no time. Three breakdowns? Automatic replacement.























































































































































































Hahahaha yeah right!! :lol:

[Winkle]

This is Best Buy USA, Best Buy Canada and Futureshop are separate and are in a completely different market with vastly different circumstances. Amazon.com sells literally everything on their online store for much cheaper then B&M retail stores. Amazon.ca has a substantially smaller selection with less competitive pricing.

[Portwest]

It's amusing how companies that are struggling always blame the competition, the economy or the Internet. I'd love to see the news release that says, "Major Retailer Closing Stores: Blames its Own Incompetent Management". :lol:

[cloakster]

This is Best Buy USA, Best Buy Canada and Futureshop are separate and are in a completely different market with vastly different circumstances. Amazon.com sells literally everything on their online store for much cheaper then B&M retail stores. Amazon.ca has a substantially smaller selection with less competitive pricing.
+1

Best Buy Canada just opened 4-5 new stores in the past year and had a very successful year. I don't think they are going anywhere soon.

[iridium001]

This is Best Buy USA, Best Buy Canada and Futureshop are separate and are in a completely different market with vastly different circumstances. Amazon.com sells literally everything on their online store for much cheaper then B&M retail stores. Amazon.ca has a substantially smaller selection with less competitive pricing.

BlockBuster bankruptcy started in the US, Canada BBV (despite being a separate entity as well) was safe for a few months and then boom! Same thing.

As I recall, this isn't the first time Best Buy has had to restructure, I remember last year or so Best Buy also closed a few more stores.

50 stores, average store employs about 80 employees maybe more, that's at least 4000 people out of work, think of the repercussions it has and the ripple it will create... it's sad but the US hasn't recovered from the recession. :confused:

Anyway, personally I don't want to see Best Buy Canada go under. But Future Shop, I'll throw a party in their parking lot the day they go under! I HATE FS with a passion! :evil:

[Wingding]

This is Best Buy USA, Best Buy Canada and Futureshop are separate and are in a completely different market with vastly different circumstances. Amazon.com sells literally everything on their online store for much cheaper then B&M retail stores. Amazon.ca has a substantially smaller selection with less competitive pricing.

Still, you have to wonder: if BB Canada is doing so well, why are they (along with Futureshop) diversifying into all kinds of product lines completely unrelated to their core business? I think I saw in some RFD forum or other a couple of weeks ago that they're now selling shampoo (!?!?!)

[Bookpreviews]

It's amusing how companies that are struggling always blame the competition, the economy or the Internet. I'd love to see the news release that says, "Major Retailer Closing Stores: Blames its Own Incompetent Management". :lol:

My experience with Future shop and Best buy is that you go to the store- wait almost 30 minutes during the day for help and staff is not always well trained.

I used to have to go and write reports on how they sold computers and cell phones and the days and times I went was always bad service.

Even when I went for myself a few weeks ago was in the store 30 + minutes. Not a single sales associate even said he or offered assistance.
I was looking to buy some telephones and did not know what to get.
eventually found something.
you have to watch out tho- there is a lot of damaged boxes in the phone dept and it seems people just open the boxes as there is no one around to help.

-finding my item that was unopened took quite a while.

[Bookpreviews]

Still, you have to wonder: if BB Canada is doing so well, why are they (along with Futureshop) diversifying into all kinds of product lines completely unrelated to their core business? I think I saw in some RFD forum or other a couple of weeks ago that they're now selling shampoo (!?!?!)

They also sell candy,soda and gum in the stores. kind of like a convenience store

[carmaster]

Best Buy needs to revamp their business model. They started selling matresses online. They can't blame anyone but themselves.

[the stig]

wow... some of you are misinformed or did not read the full story on BB US. and first of all you can't compare what happened with blockbuster to what is going on with BB...

blockbuster US had a fairly big chunk of the canadian arm of that franchise and when they started having financial issues used the canadian side as collateral to help them stay afloat. when it didn't work then they had to basically sell it off to cover some of what was owed in the bankrupt settlement.

and BB is closing 50 stores but opening 100 smaller express type stores that focus on certain things like cell phones, smaller electronics like ipods, headphones, car audio and other accessories. so technically they are simply adjusting to what the consumer is leaning towards... so they really aren't taking a hit or losing stores if you look at the big picture.

and in almost every case any US company that has a chain in canada is for the most part 75% US owned, so if there ever was a time when a chain has financial woes you can bet they will simply pony up the canadian entity to keep them running for as long as possible. if you do some digging you will see that very few canadian stores are fully owned by a canadian... they are for the most part owned by either a US or foreign company.

[smartcdn]

This is Best Buy USA, Best Buy Canada and Futureshop are separate and are in a completely different market with vastly different circumstances. Amazon.com sells literally everything on their online store for much cheaper then B&M retail stores. Amazon.ca has a substantially smaller selection with less competitive pricing.

hehe, buddy, wake up it's 2012 and Best Buy had bought out Future Shop years ago - they are NOT separate but the same company, just different banners.

[easterclause]

I think there is a clear difference between Best Buy and Futureshop still. My BB: employees who look braindead, probably from taking twenty minutes to process game trade ins. The FS: people look happier, are joking around, and the atmosphere is generally positive.

[NG]

The FS: people look happier, are joking around, and the atmosphere is generally positive.

The bigger the scam the bigger the reward the bigger the joy.

[zod]

It's too bad we don't have a kickass online retailer in Canada like Amazon.com in the USA. Amazon.ca is as meh as FS/BB. If the price is the same I'll generally order from amazon though. I got sick of seeing something onsale via RFD only to find it out of stock in the B and M store. It's so much easier just to order stuff online.

I wonder if Canada will ever get a competitive online retailer. There's a huge black hole waiting for someone to take the mantle and run with it. Maybe Canada is too small a market?

[smartie]

I blame RFD and RFDers for my poor financial situation

[NG]

It's too bad we don't have a kickass online retailer in Canada like Amazon.com in the USA. Amazon.ca is as meh as FS/BB. If the price is the same I'll generally order from amazon though. I got sick of seeing something onsale via RFD only to find it out of stock in the B and M store. It's so much easier just to order stuff online.

I wonder if Canada will ever get a competitive online retailer. There's a huge black hole waiting for someone to take the mantle and run with it. Maybe Canada is too small a market?

Amazon.com is expanding what they'll ship to Canada beyond books, cd, dvds etc. I keep hoping that they'll write a script to import the listings for everything the .com ships to Canada to show up on the .ca search results.

I believe Sears.com also ships many items to Canada now and WalMart.ca just started online ordering so things are improving.

[Importz]

This is Best Buy USA, Best Buy Canada and Futureshop are separate and are in a completely different market with vastly different circumstances. Amazon.com sells literally everything on their online store for much cheaper then B&M retail stores. Amazon.ca has a substantially smaller selection with less competitive pricing.

This! Amazon.ca blows!

[pete_rfd]

Honestly if I see something on best buy or future shop, an it's the same price at amazon I'll buy from amazon
Why is that? What if you need to return the item? You have to pay return shipping right?

[Octavius]

Why is that? What if you need to return the item? You have to pay return shipping right?

I suspect he means if it's about the same price including shipping.

...and probably for principle. I avoid buying anything at future shop/best buy unless I'm in a pinch and need something immediately, and even then I'll take a look online to see if I can get the overpriced product I need down to something more reasonable.

More often than not, even when buying from amazon.com and paying for shipping, you still come out ahead over buying locally.

[NG]

Why is that? What if you need to return the item? You have to pay return shipping right?

Amazon covers return shipping. I've never needed to do it but I've read you can print a pre-paid shipping label via your account.

I'm the same way. BB/FS/Staples/CanTire are the *last* places I'll shop for anything.

All another store (Amazon or whomever) has to do is simply meet the price (not even beat it) and I'll happily buy it from them.

[nauru]

Amazon covers return shipping. I've never needed to do it but I've read you can print a pre-paid shipping label via your account.

I'm the same way. BB/FS/Staples/CanTire are the *last* places I'll shop for anything.

All another store (Amazon or whomever) has to do is simply meet the price (not even beat it) and I'll happily buy it from them.

I am the same way. I will only buy locally if I'm unable to find anyone offering what I want for the same cost, on the entire internet. This virtually never happens so I almost never buy from BB/FS/Staples/CanTire.

Although I recall one time buying some dumbbells from Canadian Tire because sending 100 lbs of cast iron through the mail is too expensive.

[Wingding]

I think there is a clear difference between Best Buy and Futureshop still. My BB: employees who look braindead, probably from taking twenty minutes to process game trade ins. The FS: people look happier, are joking around, and the atmosphere is generally positive.

Yes, it's funny about that. I prefer BB on principle because I don't like having to deal with the commissioned salespeople over at FS, most of whom are incredibly pushy, and will often just tell you whatever they think you want to hear to make the sale.

Yet I do find that for the most part the BB staff are not a very lively bunch. Anyone know how much a sales associated (or whatever they're called) gets paid at BB? If they're not on commission, do they get some sort of incentive bonuses for moving product?

[Wingding]

I am the same way. I will only buy locally if I'm unable to find anyone offering what I want for the same cost, on the entire internet. This virtually never happens so I almost never buy from BB/FS/Staples/CanTire.


I'm the opposite. I hate the idea of dealing with the often-nightmarish delivery process and waiting to get the stuff I want RIGHT NOW (dammit.) Plus I like wandering around in a large, pleasantly decorated retail environment with lots of sparkly gewgaws to look at and touch. To say nothing of the slightly demented joy of screwing with the salespeoples' minds in ever-more-creative ways.

[NG]

Anyone know how much a sales associated (or whatever they're called) gets paid at BB? If they're not on commission, do they get some sort of incentive bonuses for moving product?

The carrot: If they sell enough they get bonuses like concert tickets.

The stick: If they don't sell enough they get fired.

[greenman456]

I'm the opposite. I hate the idea of dealing with the often-nightmarish delivery process and waiting to get the stuff I want RIGHT NOW (dammit.) Plus I like wandering around in a large, pleasantly decorated retail environment with lots of sparkly gewgaws to look at and touch. To say nothing of the slightly demented joy of screwing with the salespeoples' minds in ever-more-creative ways.

True. Plus I have yet to find better prices online dispite numerous claims otherwise and amazon.com's sky-high shipping costs queer almost every deal, not too mention you do not have to risk credit card fraud.

[NG]

True. Plus I have yet to find better prices online dispite numerous claims otherwise and amazon.com's sky-high shipping costs queer almost every deal,

Really? Queer?

That aside you're clear not keeping track of the Hot Deals forum. Deal from Amazon or anywhere else factor in shipping costs to decide if its a good deal.



not too mention you do not have to risk credit card fraud.

Yeah...since credt card fraud never happens in store. Or debit card fraud. Or being passed counterfeit bill back in change.

But hey keep dumping on the competition to protect the dying beast of Best Buy.

[Bell Rep]

Well it's only 50 stores... out of over 4100. Is it really so bad to close the bottom 1% of stores every few years? Some companies fire the bottom 10% of their employees every year.

They actually have 1200 stores worldwide.

[cloakster]

Yes, it's funny about that. I prefer BB on principle because I don't like having to deal with the commissioned salespeople over at FS, most of whom are incredibly pushy, and will often just tell you whatever they think you want to hear to make the sale.

Yet I do find that for the most part the BB staff are not a very lively bunch. Anyone know how much a sales associated (or whatever they're called) gets paid at BB? If they're not on commission, do they get some sort of incentive bonuses for moving product?

Between $10.50-$13/hr depending on how long you have worked there. The incentive for moving product is to make your managers happy and get better raises.

[blainehamilton]

Between $10.50-$13/hr depending on how long you have worked there. The threats for moving product is to make your managers happy and get better raises.

Fixed that for you. Coming from a former employee.

[death_hawk]

Why is that? What if you need to return the item? You have to pay return shipping right?
Amazon pays return shipping. Hell, their return policy is damn near as good as 4Packs. I was picking up stuff in the US and an item shipped late which caused it to be delivered late and Amazon paid the return no questions asked.


I'm the opposite. I hate the idea of dealing with the often-nightmarish delivery process and waiting to get the stuff I want RIGHT NOW (dammit.) Plus I like wandering around in a large, pleasantly decorated retail environment with lots of sparkly gewgaws to look at and touch. To say nothing of the slightly demented joy of screwing with the salespeoples' minds in ever-more-creative ways.

US Delivery != CA Delivery
UPS is actually awesome in the US.


True. Plus I have yet to find better prices online dispite numerous claims otherwise and amazon.com's sky-high shipping costs queer almost every deal, not too mention you do not have to risk credit card fraud.

Depends on the item. Amazon isn't as cheap as most people claim for some items, but for other items it's DIRT cheap. It's like an inverse bell curve. On one end things are so cheap it's laughable and on the other end it's like WTF why are you $500 more than everyone else?
There really isn't much middle ground.

Sky high shipping? Free is sky high? Even if you're not a Prime member (which anyone who buys more than 3 items at Amazon a year should be) any purchase over $25 gets shipped free. It's not the fastest service, but $80 a year buys you 2 day air shipping and $4 per product next day air. Guaranteed. And I spend more than $80/year at most shops.

And credit card fraud is less likely online where humans (shouldn't) see your credit card (and number) to be able to duplicate it. I say "shouldn't" since the big retailers pass on your info directly to the payment processor. If you buy something at "Joe's super legitimat shoop!!1one!" or something then yeah you're gonna get scammed. But any GOOD retailer automates it.

You're more at risk in a brick and mortar establishment where employees have easy access to your card, signature, PIN etc.

[iridium001]

Well looks like this may be the beginning of the end....

http://www.thestar.com/business/article/1158960--best-buy-ceo-resigns?bn=1#article

Best Buy CEO resigns after 28 years!

Doesn't the captain usually goes down with the ship? Not in the business world I guess. (RIM's CEOs and other execs have left recently as another example...)

[zod]

It's a bit different here in Canada because everything is expensive regardless if its at a B&M store or online.

In the US its different because Amazon.com is pretty good. If bestbuy is getting beat by online sales. Why don't they start leveraging their online website? IE offer a discount to online orders and compete with Amazon?

I think you're still going to have people that want to shop in a B&M. I don't like to do it often, but sometimes there's something I want right away (like when I wanted to new car stereo for my car a few months ago because cd's were driving me nuts and I want to be able to use flash drives).

If it really costs more to offer things in a B&M and you also have an online store. You should be able to get the best of both worlds. I suppose online vs. b&m pricing being different could cause confusion. It seems to me they have the tools to target online shoppers and b&m shoppers. Maybe that's why they replaced the CEO.

[cayros]

I've never purchased from Amazon, what am I missing? lol

The experience of having to deal with UPS lying about attempted delivery. Unless you attempt this (http://forums.redflagdeals.com/no-more-amazon-ca-me-1107828/2/#post13794162) and it works.

[zoro69]

The problem for BB and anyone else who competes with AMZN is AMZN is quite happy to lose money on sales for market share. Once some competitors fail that will end. While they grab traffic with their own loss leader sales they make money on the % they charge their 3rd party sellers that are growing far faster then ebay. If BB goes head to head at no or negative margin they'll just lose money period.


http://moneyland.time.com/2011/11/14/amazon-prime-loses-11-annually-per-member-%E2%80%A6-and-its-a-huge-success/

http://articles.cnn.com/2011-09-30/tech/tech_gaming-gadgets_kindle-fire-price_1_tablet-computer-tablet-market-amazon-prime?_s=PM:TECH

[submalst]

I find that BB and FS stores are all hit or miss in terms of service. Some stores are o.k, others are just awful.

Even so, how many gadets do I need every year?
I have a tv, pvr, speakers, pc, laptop, smartphone, gps, camera, various mp3 speakers and what not. I dont need to replace these items every year.
I dont need 50 trillion accessories.

[hamant]

This is Best Buy USA, Best Buy Canada and Futureshop are separate and are in a completely different market with vastly different circumstances. Amazon.com sells literally everything on their online store for much cheaper then B&M retail stores. Amazon.ca has a substantially smaller selection with less competitive pricing.

i was wondering when someone was going to mention this