Best Buy Responds To Reports That It Is Dying A Slow Death.
06/07/2012 Leave a Comment
Remember the article: http://www.gadgetables.com/informative-article-about-how-bestbuy-is-deterioting/ apparently, BestBuys’ CEO Brian Dunn replied: “
As CEO, I know that criticism goes with the job,” writes CEO Brian Dunn, “and I’m well aware we have some challenges. I also know that errors we make often translate into a poor experience for our customers, and that is simply unacceptable.” is concerned.
Read the Fully: http://consumerist.com/2012/01/best-buy-responds-to-reports-that-it-is-dying-a-slow-death.html
Best Buy CEO Defies Critics.
By MIGUEL BUSTILLO and MATT JARZEMSKY.
Best Buy Co.’s chief executive shot back Friday at critics who have been calling the retailer a relic, as the electronics giant reported lower December sales compared with the year before.
In a lengthy blog post, CEO Brian Dunn acknowledged that some criticism about his company’s performance had merit, calling an episode last month in which the retailer canceled online orders that were placed weeks before Christmas “our fault” and “not representative of how we EVER want to treat our customers.”
More fundamentally, Mr. Dunn said, detractors who have questioned the speed with which Best Buy was adapting its business model to growing online
competition had a “fair criticism.”
But he took strong exception to recent claims, largely on tech blogs, that the Richfield, Minn. company—and specialty-store chains in general—were doomed by the rise of Internet merchants such as Amazon.com Inc., which are outflanking some brick-and-mortar chains on selection as well as price.
He cited a recent study by researcher NPD Group, which found that roughly 80% of electronics were still bought in stores, and added that Best Buy saw store visits climb last quarter.
“This misguided perspective is especially troubling for me, because it blatantly and recklessly ignores overwhelming evidence to the contrary,” Mr. Dunn wrote on his blog, Brian’s Whiteboard. “Best Buy is a financially strong and profitable company.”
Mr. Dunn’s defense met a mixed reaction online even on his own blog. The very first response on Brian’s Whiteboard came from someone—identifying himself as a former Best Buy sales manager—who said he now uses the Internet to search for better deals on sites such as Amazon.com
“I will buy it in your store…use it while I order another one for 75% less on Amazon and then return the new in the box one at your store,” the commenter wrote. “It’s shoppers like me that are multiplying because of research that is available on the Internet and that is why there is concern” about the company.
Best Buy shares have plunged 30% in the past 12 months as the world’s largest electronics retailer by revenue has struggled with slowing sales. Last quarter its sales rose 0.9% at stores and websites open at least 14 months, breaking a streak of five consecutive quarters of declining sales.
But the gains, largely the result of heavy Black Friday promotions, were achieved at the expense of profits, which fell 29%, raising further questions among analysts about whether the company could flourish in the new competitive environment.
Best Buy provided another muddy picture on Friday when it reported that its same-store sales for December slipped 0.4% domestically and 4.3% internationally, but that profits held steady. It did not change its forecast for fourth-quarter earnings.
Analysts generally greeted the results as a positive, saying Best Buy’s situation remained more positive than dire predictions suggested. “Not as bad as feared,” Credit Suisse analyst Gary Balter titled his note to investors.
Via http://online.wsj.com/article/SB10001424052970203471004577144441608627950.html
Check-out Brian Dunns’ Profile: http://people.forbes.com/profile/brian-j-dunn/11391
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