Good sign things aren't good for Best Buy

[ATTech]

Sorry .

I am not sure if you're aware whats going on in the UK, but there is mass job cuts in the public sector, 1000 police staff in my city alone are loosing their jobs for example. It is going to have massive impacts on any consumer to consumer business.

I am guessing if it hasn't already happened very similar things will happen in the USA and I know the USA already has a lot of unemployment due to the recession.

I don't get it, are you suggesting that most Americans are ignorant to the effects of the recession? You can throw a stick and hit 5 people who will blame their situations on the economy...

 

[joydivision]

I don't get it, are you suggesting that most Americans are ignorant to the effects of the recession? You can throw a stick and hit 5 people who will blame their situations on the economy...

No, I am suggesting most Americans are well aware of the problems, but the government is too scared to take too much action now, in case it damages the economy further.

It is why some retail sectors are finding it hard, as consumer spending in the USA like in Europe is down, and it is reflected in how badly companies like BestBuy and Dixons are doing.

Britain and America have disagreed with the issue, and I can see both sides. But I do think Obana was right when he told Cameron that the Brits are being a too drastic too quickly.

We won't know which policy is right for at least another decade though.

 

[sys-eng]

If they are needing to lease space, that means instead of closing stores, leasing out space is a good idea to keep them where they are. Smart move on their end, but I think there is a strong message here about how they are doing overall and with Geek Squad's $20 a month special, it's safe to assume things are not going well. I don't know, this is how I saw it. Thoughts?

Oh and here's a little story (actually a big story) that got a full pack page of the business section of the Star Tribune last summer. Of course, didn't make any of the local news stations. Guilty: Couple scammed Best Buy out of $41.6M

The local Best Buy stores have substantial floor space for household applicances and CD's & DVD's. Appliance sales are nearly dead in most areas of the USA and not expected to revive for at least 5 yearsl. CD and DVD sales are way down in retail stores due to Internet sales, downloads, and pay on demand. It really souynds like Best Buy is trying to avoid the mistakes of some of its competition both present and past.



I am not aware of Geek Squad's $20 a month special. I believe $20 is too much to pay them for anything.

 

[Tony_Scarpelli]

Why did I read this sentence as if some pissy French person was saying it?

Could just as easily been a pissy american saying it. We can't agree with ourselves how can we expect those abroad to agree with us? well there is no one really to agree with. One group who has all the money wants to let the children starve and cut police and fire departments. The other group is trying to spray water on the fire but the other group is turning off the valve.

Thing is for at least a decade we had near full employment Spending all the money but we also borrowed and spent against our rising property values. as many as 1/5 of all homes are now upside down owing more than they are worth so no more equity to spend.

That boat has sailed and we are not likely to be able to get 2nd and 3rd mortgages and visa's against our home equity in this market even if we escaped the upside down property value to mortgage.

Pretty much every market in the western world is in the same boat. This over spending found its way all around the world accept maybe Asia.

Germany looks pretty smart to me for not jumping in the billionaire bailout plan like we did in the USA. French look pretty smart to stand up to Bush about the Iraq war.

Two points I would like you to consider. First what is bad for BB is bad for us. Second, Since we cannot obtain full employment easily and we may never be able to spend against our home equity again, Current sales volumes are 'the new normal' so get used to it.

 

[joydivision]

Apart from the property thing I which I know nothing about the USA property market I agree with you.

I personally think my future is very bleak as long term I know there will be no jobs, and the PC repair industry has probably just reached its peak.

I imagine a lot of us westerners are feeling like this, and thus not spending money, Personally I have no money, so I enjoy spending it

 

[nesrinamb]

Last I checked they had a net profit margin last year of only 2.7 percent and this year for their second quarter they only had a margin of 1.5 percent. Maybe by the end of the year things will look up for them but man is that a thin profit margin.

 

[RegEdit]

It never ceases to amaze me how people are OK with paying $200 + to have their PC repaired at Geek Squad.

 

[maclaptech]

BB had just recently announced that they were going to start opening smaller retail shops around the country. This might be why they are doing this but I'm not sure...

 

[Paul Rodgers]

BB had just recently announced that they were going to start opening smaller retail shops around the country. This might be why they are doing this but I'm not sure...

Yeah. I'm guessing they still remember Circuit City.

 

[Tony_Scarpelli]

Yeah. I'm guessing they still remember Circuit City.

They should be careful as CompUSA was no slouch an they got their plates handed to them. BB is next in a long line. Now they have to compete with Bentonville, AR.

So when you are desperate for a part, don't have time to order it from the wholesaler who do you buy from Bestbuy or Walmart? For me, as much as I hate Walmart I have to say I have bought 4x more stuff from them than from BB. There are more Walmarts, they are closer, some are 24 hrs a day, the prices are as good or better than BB (accept when BB has a sale flyer out).

 

[Joseph@Dagon]

Why did I read this sentence as if some pissy French person was saying it?

It's because of the way he said "YOU Americans".

I'm not American and even I was like "woah, dude, settle down" when i read that post. lol

 

[wimwauters]

I'd love some of their stupid services to go under, but ultimately stores like this need to survive for the economy, idiots, and just in case we need something last minute.

I am sorry to hear you are in that situation. I've got plenty of Asian distributors around who run online shops from a little warehouses and who import all the computer gear we ever need straight from China/Signapore/Taiwan. I can always pop round to their trade counter and buy things on the spot. Job done

I think you'll find we do not need consumer outlets: focus on finding small local trade-only outlets.

 

[Keith G]

I am sorry to hear you are in that situation. I've got plenty of Asian distributors around who run online shops from a little warehouses and who import all the computer gear we ever need straight from China/Signapore/Taiwan. I can always pop round to their trade counter and buy things on the spot. Job done

I think you'll find we do not need consumer outlets: focus on finding small local trade-only outlets.

Makes sense, I sent you a message for clarity

 

[pcdrpros]

As Far as Best Buy goes, I was shocked when several Best Buy employees brought their sick computers to my business to get repaired!!! They told me that the Geek Squad staff at our local Best Buy were incompetant when it came to computer repair and even with their employee discount our prices and turnaround time were better than Geek Squad