Also, unlike RadioShack, Best Buy sells larger high-margin items, like refrigerators and flat-screen televisions. One of Best Buy’s strategies has been to introduce product-specific sections, turning their store into a kind of consumer electronics bazaar organized by brands, with sales representatives who are experts on them, as well as product types. They’re still stuck in a 1950s selling mode.”ĬEO Joe Magnacca, who in February 2013 became the company’s fourth boss in three years, certainly recognizes the challenges.īest Buy, though doing better than it has in the past, is still grappling with the problem that took down Circuit City: that consumer electronics are increasingly being bought online from companies like and TigerDirect. As far as brand management, no one would do that in this day and age. “The company fell and nobody has been able to put it back together. “It’s like Humpty Dumpty,” said Bob Phibbs, CEO of The Retail Doctor. Otherwise they’re headed to extinction.”Īfter a string of quarterly losses, including $160 million in its third fiscal quarter of 2014, the Fort Worth, Texas, company is preparing for bankruptcy court, which could either find it with less debt and an ambitious court-approved restructuring plan, or advise it to put its assets on the auction block. “They lack something that distinguishes them in the marketplace, which they need. “To have customers shopping at a ‘shack’ that’s called ‘radio’ is symbolic of how out-of-touch they are with 2015,” said Adam Sarhan, founder and chief executive officer of Sarhan Capital. Account icon An icon in the shape of a person's head and shoulders.
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