Bye bye Best Buy?

[dixiegrrrrl]

Best Buy Suspends Profit Forecast as Net Income Falls
Best Buy Co. (BBY), the retailer resisting a takeover attempt by its founder, reported second-quarter profit that trailed analysts’ estimates and suspended its earnings forecast as sales of computers and televisions dropped.

Net income fell 91 percent to $12 million, or 4 cents a share, from $128 million, or 34 cents, a year earlier, the Richfield, Minnesota-based company said today in a statement. Excluding restructuring charges and other items, profit was 20 cents a share. Analysts’ average estimate was 31 cents.

Snip:
Gross margin, or the percentage of sales left after deducting the cost of goods sold, narrowed to 24.3 percent from 25.4 percent a year earlier after the retailer used more discounts to spur sales.

“This is really a bad signal about the business, implying much more promotion than in the past,” Michael Pachter, an analyst at Wedbush Securities in Los Angeles, said today in an e-mail. He rates Best Buy neutral. “The factors leading to the decline don’t look like they’re going to decline any time soon.”
http://www.bloomberg.com/news/2012-08-21/best-buy-suspends-profit-forecast-as-net-income-falls.html

[Hassin Bin Sober]

1. I was in a Best Buy a couple weeks ago.

We had a question that required a manager. After the question was answered, the manager started offering discounts on everything - 20%+.

We were there to buy an infrared repeater for a cabinet I just built for a friend. They didn't have one in stock but they had a fancy universal remote that was priced at $350 bucks. The manager knocked $100 bucks off the price. Still too much in my mind but my friend wanted a universal remote and this solved our line-of-sight behind cabinet doors problem (the system uses radio waves).

The manager took 20% off everything else we bought (surge protectors, Ipod charger etc.). He mentioned something about that location hurting and how he was brought in to spur sales.

[dixiegrrrrl]

2. Best Buy managed to drive customers away

with bait and switch tactics and poor service.
That was even before the economy went into the crapper.
They are doomed, IMHO.

[Gidney N Cloyd]

3. I'd say I've had good to excellent service in all the Best Buys I've been in except one.

That comes down to about 7 out of 8 with repeat visits to most of them over the years. Hate to see the chain go down, if in fact it is.

[Hells Liberal]

5. Amen, Dixie!

I went there with a fried motherboard. Without even looking at my computer, they said the problem was spyware and wanted to sell me a spyware program. That was only the latest in a series of problems I had with their service.

That was six years ago and I've never to shopped there again.

[dixiegrrrrl]

6. The inter webs are full of complaints about Best Buy.

I check out almost all my online purchases by looking first for complaints about the product and the store...that's how I know what to avoid.
Back when I lived in a real city, shopped at Best Buys around the SF area....the stores had a "flat" feeling to me.
Sorta the feeling that K-Mart had.
dunno how to explain it.

[Fuddnik]

9. They lost me for good a couple of years ago.

I bought a GPS that was giving me bad (wrong) directions. I'd had the same model before, and was familiar with the unit.

I took it back, told them it was defective, and they took it into the back room to test it, and said there was nothing wrong with it. I asked them, just how in the hell do you road test a GPS in the back room, and told them to give me a refund. The said I would have to pay a 15% "re-stocking fee" ($30). I argued with the manager for a while and said, keep your thirty bucks and give me the rest. Then I asked for a pair of scissors and chopped up their Best Buy credit card in front of them. Said I'd spent thousands of dollars in that place, everything from computers, audio equipment, washer and dryer, etc. Their credit card was nice. Everything you put on it was 90 days, same as cash. And I always paid it before interest charges.

I lied. I still go back just to "showroom" them. Check out what I'm looking for, and buy it from Amazon or elsewhere cheaper. With free shipping, what's a couple of days wait. And if a salesman gets obnoxious, I tell him what I'm doing and why.

[Warpy]

4. Well, shit

That's the last big box electronics store we have here in this city. I guess indie places will rush in to fill the void eventually, but it's going to take years to happen.

Looks like it's going to be Egghead, Tiger, and Amazon for the duration, although Radio Shack is still hanging in there for the bits and bobs like cables.

[dixiegrrrrl]

7. We have used New Egg for years, w/ no problems.n/t

[Warpy]

8. I know, it's just annoying to have to pay to overnight it

or wait several days for delivery instead of popping over to a bricks and mortar store for some instant gratification without shipping charges.

I'll miss Best Buy for that reason. Anyway, I've only had to make a scene there once to get them to honor a warranty. They've been peachy to me ever since.