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The end of the big box store, is Best Buy dying?

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  • The end of the big box store, is Best Buy dying?

    Just a couple weeks ago Best Buy announced they would be closing 50 stores and they laid off about 400 people. This isn't the first that has happened in the last 5 years. Now today, Brian Dunn has announced that he has resigned as CEO of Best Buy. Thoughts?
    Michigan Tech Legend, Founder of Mitch's Misfits, Co-Founder of Tech Hockey Guide, and Creator/Host of the Chasing MacNaughton Podcast covering MTU Hockey and the WCHA.

    Sports Allegiance: NFL: GB MLB: MIL NHL: MIN CB: UW CF: UW CH: MTU FIFA: USA MLS: MIN EPL: Everton

  • #2
    Re: The end of the big box store, is Best Buy dying?

    I bet your girlfriend LOVES this thread.
    Having a clear conscience just means you have a bad memory or you had a boring weekend.

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    • #3
      Re: The end of the big box store, is Best Buy dying?

      Originally posted by bigblue_dl View Post
      I bet your girlfriend LOVES this thread.
      haha, she feels the same way...said she was in shock with this whole thing. Brian Dunn resigning is a horrible sign for the company after the other week's layoffs.
      Michigan Tech Legend, Founder of Mitch's Misfits, Co-Founder of Tech Hockey Guide, and Creator/Host of the Chasing MacNaughton Podcast covering MTU Hockey and the WCHA.

      Sports Allegiance: NFL: GB MLB: MIL NHL: MIN CB: UW CF: UW CH: MTU FIFA: USA MLS: MIN EPL: Everton

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      • #4
        Re: The end of the big box store, is Best Buy dying?

        It's very true that these stores have merely become showrooms and people are purchasing online.

        Did we see similar issues during the days of catalogue shopping, like when Montgomery Ward came into prominence with their catalogue service? The biggest issue I see is that these stores aren't reacting to the market's times. A store like Staples stays afloat because not only have they started online shopping, but they will price-match their online store (assuming you ask about it; I know I received a price-match when I bought something).
        Last edited by FlagDUDE08; 04-10-2012, 10:22 AM.

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        • #5
          Re: The end of the big box store, is Best Buy dying?

          Originally posted by FlagDUDE08 View Post
          It's very true that these stores have merely become showrooms and people are purchasing online.

          Did we see similar issues during the days of catalogue shopping, like when Montgomery Ward came into prominence with their catalogue service? The biggest issue I see is that these stores aren't reacting to the market's times.
          What are they suppose to do? They can't sell it for the prices on Amazon, etc. If they do they lose money because of the cost of the store itself. Once they disappear, who will be the showroom for online shoppers?
          Michigan Tech Legend, Founder of Mitch's Misfits, Co-Founder of Tech Hockey Guide, and Creator/Host of the Chasing MacNaughton Podcast covering MTU Hockey and the WCHA.

          Sports Allegiance: NFL: GB MLB: MIL NHL: MIN CB: UW CF: UW CH: MTU FIFA: USA MLS: MIN EPL: Everton

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          • #6
            Re: The end of the big box store, is Best Buy dying?

            I doubt it's the end of the big box stores. But it's likely the start of the end for Best Buy. It's hard to compete with Internet prices when they have overhead of dozens of employees at each store and paying rent/leasing property for their buildings.

            They really milked the extended warranty idea to prolong the death, but with electronics getting "cheaper," it isn't worth it. It's cheaper to throw away broken electronics and buy new than to repair it, and people are starting to use Best Buy more to comparison shop before purchasing online.
            “Demolish the bridges behind you… then there is no choice but to build again.”

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            • #7
              Re: The end of the big box store, is Best Buy dying?

              Originally posted by Shirtless Guy View Post
              What are they suppose to do? They can't sell it for the prices on Amazon, etc. If they do they lose money because of the cost of the store itself. Once they disappear, who will be the showroom for online shoppers?
              Does Best Buy do online shopping? Staples does.

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              • #8
                Re: The end of the big box store, is Best Buy dying?

                Not shocking. Amazon killed off every book store with more than 4 stores in America aside from Barnes and Noble.

                Books, movies, electronics: things you can just as easily order online as buy in person. Clothing isn't as volatile because you want to see it and try it on before you buy it.
                "I went over the facts in my head, and admired how much uglier the situation had just become. Over the years I've learned that ignorance is more than just bliss. It's freaking orgasmic ecstasy".- Harry Dresden, Blood Rites


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                • #9
                  Re: The end of the big box store, is Best Buy dying?

                  Originally posted by bronconick View Post
                  Not shocking. Amazon killed off every book store with more than 4 stores in America aside from Barnes and Noble.

                  Books, movies, electronics: things you can just as easily order online as buy in person. Clothing isn't as volatile because you want to see it and try it on before you buy it.
                  It would be interesting to see how electronic sales would go for Amazon and other online outlets if they didn't have the free show room.
                  Michigan Tech Legend, Founder of Mitch's Misfits, Co-Founder of Tech Hockey Guide, and Creator/Host of the Chasing MacNaughton Podcast covering MTU Hockey and the WCHA.

                  Sports Allegiance: NFL: GB MLB: MIL NHL: MIN CB: UW CF: UW CH: MTU FIFA: USA MLS: MIN EPL: Everton

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                  • #10
                    Re: The end of the big box store, is Best Buy dying?

                    Originally posted by Shirtless Guy View Post
                    It would be interesting to see how electronic sales would go for Amazon and other online outlets if they didn't have the free show room.
                    Probably not too much different. You can't exactly try the electronics at the store, and there are already customer reviews easily available (although you have to weed through the ******-y ones).

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                    • #11
                      Re: The end of the big box store, is Best Buy dying?

                      Best Buy needs to totally reinvent themselves. Keep the stores for now yet radically transition IBM style.
                      Go Gophers!

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                      • #12
                        Re: The end of the big box store, is Best Buy dying?

                        Originally posted by 5mn_Major View Post
                        Best Buy needs to totally reinvent themselves. Keep the stores for now yet radically transition IBM style.
                        What would we want that's new and exciting?

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                        • #13
                          Re: The end of the big box store, is Best Buy dying?

                          I saw an synopsis on them recently... and their view wasn't so much that Amazon was killing them off (though as somebody who doesn't have a car, I find Amazon insanely convenient) its just that they suck at customer relations and providing anything of real personal value.

                          The advantage a Best Buy has over something else is that they have people you can talk to and you can compare in person and judge for yourself. But if that advantage has been reduced to a near valueless "window shopping" then there isn't a point. If you could trust the the sales person to set you up real good (even if it costs a bit more) then you'll do it because you know you're getting reliable service.

                          Instead, Best Buy decided to race to the bottom... and it turns out, they lost!

                          Best Buy has always had trust problems... I've always been leery about going into there because I can't trust that the guys working the floor have any real knowledge. Best Buy, as a brand, is terrible. I think the "big box" can still work... you just can't be bad at it. Maybe the margins are so that you can't hire quality staff and keep them... if so then that's the way it goes... but it seems to me Best Buy's problems are entirely self-inflicted and if so, then I wouldn't be surprised if there is a smaller more reliable replacement in its wake... maybe not right away... but something.
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                          • #14
                            Originally posted by FlagDUDE08 View Post
                            What would we want that's new and exciting?
                            Adult showrooms where employees work for tips and bb can charge token admission to cover rent.
                            a legend and an out of work bum look a lot alike, daddy.

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                            • #15
                              Re: The end of the big box store, is Best Buy dying?

                              Originally posted by Patman View Post
                              I saw an synopsis on them recently... and their view wasn't so much that Amazon was killing them off (though as somebody who doesn't have a car, I find Amazon insanely convenient) its just that they suck at customer relations and providing anything of real personal value.

                              The advantage a Best Buy has over something else is that they have people you can talk to and you can compare in person and judge for yourself. But if that advantage has been reduced to a near valueless "window shopping" then there isn't a point. If you could trust the the sales person to set you up real good (even if it costs a bit more) then you'll do it because you know you're getting reliable service.

                              Instead, Best Buy decided to race to the bottom... and it turns out, they lost!

                              Best Buy has always had trust problems... I've always been leery about going into there because I can't trust that the guys working the floor have any real knowledge. Best Buy, as a brand, is terrible. I think the "big box" can still work... you just can't be bad at it. Maybe the margins are so that you can't hire quality staff and keep them... if so then that's the way it goes... but it seems to me Best Buy's problems are entirely self-inflicted and if so, then I wouldn't be surprised if there is a smaller more reliable replacement in its wake... maybe not right away... but something.
                              This is even a trend with department stores as well. How do they determine the worthiness of their cashiers? It's not through their service, but through how many store credit cards they are able to sell.

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