Best Buy is suffering and so is the market..

[mikejet]

They have no choice, it would be the only way to bring customers into the store. Right now they have 18 months no interest on all purchases over $499. I expect more once Black Friday comes around.

[benricci]

Originally Posted by mikejet

They have no choice, it would be the only way to bring customers into the store.

Wrong, slashing prices is a short term win and is usually a sign of desperation or imminent liquidation. It's not the first move you make when you report a bad quarter, in a bad economy.

The CEO acknowledges a "seismic shift" in consumer patterns, meaning they need to change a number of strategies and corporate paradigms to remain successful.

[$plash]

if Best Buy is "suffering" then Circuit City must be on life support

[HD Man]

It's a tough economy for all businesses right now. With CC barely hanging on and trying to re-organize through bankruptcy, I wouldn't expect BB to have bigger and better sales at all. BB's prices on dvd's and BR's were a couple of bucks more than CC, so look for them to hold prices steady with some sales of higher margin items or manufacturer supported clearance/slo-moving items designed to lure people into stores.

The real competition could develop between Wal-Mart, Target, and BB for B&M stores.

[Clark Kent]

Unfortunately Circuit City going into bankruptcy will keep Best Buy's pricing relatively high. There just aren't a lot of national electronics retail chains left. I do think big ticket items like tvs will drop in pricing as component costs are coming down now that the price of oil is crashing.

[Russell_L]

I was at one of my local BBs yesterday, and frankly you wouldn't know that they were in trouble. The store was pretty busy, with several people looking at their (increased) stock of Blu-rays. (And yes, some were buying.) I counted at least 10 copies of the special-edition 'Hellboy-II' (the one with the extra thingamajig in a large box) and at least that many copies of the new 'Band of Brothers' box set. (Good price there at $54.99.) They also had NO copies of the 'Kung Fu Panda' BD, but I don't know whether they were just sold out because of their low sale price on it ($21.99) or because they just didn't get any in. (This title was also not on the shelf at another BB I visited yesterday.)

[Panos]

Originally Posted by Russell_L

I was at one of my local BBs yesterday, and frankly you wouldn't know that they were in trouble. The store was pretty busy, with several people looking at their (increased) stock of Blu-rays. (And yes, some were buying.) I counted at least 10 copies of the special-edition 'Hellboy-II' (the one with the extra thingamajig in a large box) and at least that many copies of the new 'Band of Brothers' box set. (Good price there at $54.99.) They also had NO copies of the 'Kung Fu Panda' BD, but I don't know whether they were just sold out because of their low sale price on it ($21.99) or because they just didn't get any in. (This title was also not on the shelf at another BB I visited yesterday.)

I noticed the same thing at my local best buy here on the east coast. It was Veteran's day, so a lot of people had the day off. There were hardly any kung fu panda blu-rays left! At first i was told they were sold out, until one of the sales reps found about 5 or 6 copies left, but that was it and it looked like they had a few sections with kung fu panda on blu but they were all all gone.

You just don't see big items like TV's being sold like they used too. Before i remember no matter what time or day i was at best buy, there would be at least a couple people there buying tv's. Now you don't see that very often...I don't even see many people browsing the TV sections. They did have a huge supply of 37" Samsung LCD's stacked up in the corner. There must of been at least 100 of them stacked there. They seem to be selling small items like dvd's and blu's at least.

[P@t_Mtl]

Originally Posted by Russell_L

I was at one of my local BBs yesterday, and frankly you wouldn't know that they were in trouble. The store was pretty busy, with several people looking at their (increased) stock of Blu-rays. (And yes, some were buying.) I counted at least 10 copies of the special-edition 'Hellboy-II' (the one with the extra thingamajig in a large box) and at least that many copies of the new 'Band of Brothers' box set. (Good price there at $54.99.) They also had NO copies of the 'Kung Fu Panda' BD, but I don't know whether they were just sold out because of their low sale price on it ($21.99) or because they just didn't get any in. (This title was also not on the shelf at another BB I visited yesterday.)

Unfortunatly people in store does not mean good sales A lot of people just walk around in stores and kill time and do not buy anything.

[Ferris]

The bottom line is in a tough economy, such as the one we're in, the average consumer (not the blu-ray fiend or electronics buff) spends less of their money on non-essentials. These non-essentials include EVERY SINGLE THING Best Buy sells. Places like Costco and Target, which sell essentials (tiolet paper, clothes, food, etc) don't get hurt as badly.

Best Buy's problem isn't as much "Best Buy" as it is the economy. They'll need to initiate a pretty substatial shift in their marketing/pricing/management paradigm while the economy sits where it is.

[Roland1919]

Originally Posted by $plash

if Best Buy is "suffering" then Circuit City must be on life support

I'm a Blu-Ray ***** and I too have shut out Best But because I will not pay $29.99 when I can go to AMAZON.com and get the same title for $23.95 or less and not pay a dime for tax or shipping. BRICK and MORTAR will continue to fail until but a few are left standing. They just can't compete with online prices and especially during these times where consumers are tuly looking for "the best deal". BEST BUY will fail eventually and WAREHOUSES like COSTCO will be the benificiary because they are not limited in what they can carry...just my 2C.

[fighthefutureofhd]

Originally Posted by Roland1919

I'm a Blu-Ray ***** and I too have shut out Best But because I will not pay $29.99 when I can go to AMAZON.com and get the same title for $23.95 or less and not pay a dime for tax or shipping. BRICK and MORTAR will continue to fail until but a few are left standing. They just can't compete with online prices and especially during these times where consumers are tuly looking for "the best deal". BEST BUY will fail eventually and WAREHOUSES like COSTCO will be the benificiary because they are not limited in what they can carry...just my 2C.

brick and mortar stores most certainly can compete with online stores and most often will beat online anyday. sorry, but i just can't give money to online stores if i can help it. too cold for my taste and besides i will always support brick and mortar stores any day of the week. i hope the day never comes where there are no brick and mortar stores.

[BigMel]

Originally Posted by fighthefutureofhd

brick and mortar stores most certainly can compete with online stores and most often will beat online anyday. sorry, but i just can't give money to online stores if i can help it. too cold for my taste and besides i will always support brick and mortar stores any day of the week. i hope the day never comes where there are no brick and mortar stores.

hey i really want BB to survive. I have earned 400-500 bucks in reward dollars this year. The problem BB has is that it is acting more like GM as oppose to Apple....i think you get the analogy....I prefer "the love" of BB but not when your average blu ray is 6-8 dollars more expensive on average

[Chaka]

while going to school I worked at a Sam Goody. We lost a lot of business and eventually closed because of the BB down the street. Majority of the items at BB sale prices for music and DVDs are $1-2 more than what they paid for. How they make their money is by selling you that tv and fridge. Its really up to the studios to cut their price if they want to survive through this recession. If BB eventually closes its doors, its karma. There will always be someone cheaper like Walmart and Costco.

Historically entertainment especially Hollywood does better economically during a recession. People need escapism and will pay hefty for it.

[Kryptron]

Originally Posted by mikejet

They have no choice, it would be the only way to bring customers into the store. Right now they have 18 months no interest on all purchases over $499. I expect more once Black Friday comes around.

They can't just start cutting prices because they are already taking a loss, what good is bringing a lot of customers in to the store if what they buy doesn't leave the store any profit?
Most of these stores make their profit of accessories, services plans, satellite sign ups,cellphone sign ups and store credit card sales.

[SquidPuppet]

Intels warning after the bell didnt help either.

AP
Intel slashes 4Q outlook on dimming PC demand
Wednesday November 12, 6:06 pm ET
By Jordan Robertson, AP Technology Writer
Intel chops more than $1 billion from 4Q sales forecast, profits wounded by dimming PC demand


SAN FRANCISCO (AP) -- Intel Corp. whacked more than $1 billion from its fourth-quarter revenue forecast and ratcheted down its profit expectations because a clampdown on spending is reducing demand for its chips.

Intel's announcement Wednesday illuminates how the economic crisis is rippling across industries. As consumers and businesses cut back on buying all kinds of things, their reduced purchases of PCs are harming computer makers and their suppliers. Intel is the world's largest supplier of microprocessors, the brains of personal computers, with roughly 80 percent of the global market.
Intel blamed "significantly weaker than expected demand in all geographies and market segments" and PC makers buying fewer new chips as they burn through existing inventory to save money.

[BigMel]

Yes, these are lean times but BB needs to do something to manage the perceived short fall that they have right now for Q4. They cannot just stick to their current strategy, something has to give that will drive traffic whilst also buiding same store sales. They must do an intense analysis of inventory, use this overage as door-busters, match their competitors as best as they can with normal sale items and then sell the extra services to increase their margins. Whatever they choices, one of them is to not stay status quo because that will be the kiss of death for Q4. And the way things look,unemployment is at 6.5% by years end it may be 6.75% or higher and is estimated to tip 10% this time next year-and this was a conservative estimate....

[fighthefutureofhd]

well that didn't come as too much of a shock. i've been thinking all along that the holiday season was going to be a lean one. even for blu-ray. i just don't think this is blu-ray's year. not because of anything blu-ray's done, but just because the economy is rough right now. i wouldn't be surprised if we start hearing of a lot of stores suffering. everybody's feeling the pinch. even the entertainment field. it's really going to be interesting couple of months.

[bhampton]

Well,

This topic along with the news of Circuit City going Chater 11 and Tweeter and Sound Advice closing stores,... makes me feel a little better about buying a somewhat crappy movie (Hancock) the other day at Best Buy for full MSRP. (Maybe $29.99 is actually below MSRP but if that's the case no one will ever buy this title for retail price.)

I think from now on I'm going to try to take more of my business to Best Buy. If they will price match I'll get everything there. The only thing they won't be able to compete with is the used discs I find at Newbury.

Locally I have other options like WalMart and Bj's but those other stores sell alot of other items that people can't stop buying in a bad economy. (Like food,..home supplies, even auto parts.) So... I'm going to try to do my part to keep BB in the game.

Plus... I'll get reward zone points in the process.

-Brian

[masob98]

Yeah I rarely shop at best buy, shoot I rarely buy blurays period. I live on a budget, so I only buy the blus that I will definately watch over and over. This are some hard times we are living in and scary enough but they are probably gonna get worse.

[fighthefutureofhd]

Originally Posted by bhampton

Well,

This topic along with the news of Circuit City going Chater 11 and Tweeter and Sound Advice closing stores,... makes me feel a little better about buying a somewhat crappy movie (Hancock) the other day at Best Buy for full MSRP. (Maybe $29.99 is actually below MSRP but if that's the case no one will ever buy this title for retail price.)

I think from now on I'm going to try to take more of my business to Best Buy. If they will price match I'll get everything there. The only thing they won't be able to compete with is the used discs I find at Newbury.

Locally I have other options like WalMart and Bj's but those other stores sell alot of other items that people can't stop buying in a bad economy. (Like food,..home supplies, even auto parts.) So... I'm going to try to do my part to keep BB in the game.

Plus... I'll get reward zone points in the process.

-Brian

hold up?! you've got a newbury comics and you'd rather shop at best buy? are you insane? i'd kill for a newbury comics. some people don't know how lucky they are.