Best Buy Closing 50 Stores 407
An anonymous reader tips news that electronics retailer Best Buy will be closing 50 of its big-box stores across the U.S. this year, and laying off hundreds of corporate workers besides. The company plans to start testing new types of outlets as it tries to adapt to the changing face of retail sales. From the article:
"Best Buy shares were off 7.7% at $24.56 on Thursday afternoon on the New York Stock Exchange. Also Thursday, Best Buy reported a $1.7 billion loss for its fourth quarter ended March 3. ... Consumers armed with mobile phones are increasingly using stores as showrooms to check out merchandise they later purchase for less online, a trend greatly benefiting Internet retailers such as Amazon.com Inc. that aren't encumbered by the costs of running physical locations and in many cases don't have to collect sales tax. Meanwhile Apple Inc.'s phones and tablets, showcased in its own namesake stores, have eroded the status of specialty chains as the one-stop shop for the latest in gadgetry. In response, Best Buy said it will launch large-scale tests of what it calls new 'connected store' formats in the Twin Cities of Minneapolis and St. Paul, Minn., as well as San Antonio. The stores, which will emphasize services such as technology support and wireless connections, will feature large new hubs at their center to assist shoppers, as well as reconfigured checkout lanes and new areas to accelerate the pickup of items purchased earlier online."
New stores will be called "Just warranties". (Score:4, Interesting)
They can't blame sales tax (Score:5, Interesting)
Re:Let them die like they deserve. (Score:5, Interesting)
Browse at Best Buy, buy from Amazon... (Score:5, Interesting)
I like killing time at Best Buy. I never actually buy anything from them, way overpriced. But when I want to see if something looks like quality or crap it's a good place to go for a demo.
But then I become tempted to buy something.... A few weeks ago I wanted to get a new screen protector for my wife's Samsung Epic. "Can I help you sir?" "Yeah, do you have a screen film for this phone?" "Yes, we have this one with a lifetime warranty for 20 dollars."
Honest Abe. 20 bucks for a fancy piece of scotch tape.
"Oh, we're going broke!!!!" Good.
Re:Good (Score:5, Interesting)
I'm actually surprised nobody has taken this "showroom" concept to the OBVIOUS next level: a storefront with no backroom inventory, that solicits single sample floor models from various online retailers, and for a set monthly fee, puts a QR code Sticker on each floor model. Maybe even going so far as to team up with Amazon or somebody similar to provide the small manufacturer single-point-of-distribution services.
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Re:Good (Score:5, Interesting)
As another former CompUSA employee, I have to agree. Towards the end, just before the liquidation, the emphasis on TAP (their extended warranty program) reached almost hysterical levels. I suspect it was due to the fact that it was the highest margin thing we sold in the store (most people never even used the warranty they'd bought), but I wonder if the higher-ups, since they knew that we were going to be folding soon, wanted to soak up as much extra cash before they announced they were liquidating as possible. I do remember about 2-3 months before liquidation we were told to ship large amounts of store inventory (brand new shit, at least a dozen pallets worth from our store) down to some bizarre redistribution center in Mexico. We joked that it was some sort of Mexican drug trafficking scheme or something, but then when we got word that the liquidation was going down, it made sense, Carlos Slim was probably hiding it down there so it wouldn't get sucked up in the bankruptcy.
Of course, we employees heard after it hit the news. Not that we didn't suspect, given that Christmas was right around the corner and we'd gotten shit for Christmas freight compared to other years, but we didn't officially find out until, I shit you not, a bunch of security guards showed up to make sure us employees weren't going to start looting the place. We didn't even know why the hell they were even there for like an hour until finally the word filtered down from corporate and we found out we were all out of a job.
Honestly, though, after that it was a fucking blast. Nobody gave a shit about anything anymore, so everybody was chill in a way I'd never experienced in that place (after all the ranting about TAP and Sirius and XM and Tech Labor and all that shit they were constantly on our ass to push), and it was like a carnival for a couple months. Got a ton of shit pretty damn cheap, too, our liquidator representative was pretty fucking cool. Cleaning up fixtures netted all sorts of buried treasure, AOL disks, ancient computer parts, sales brochures for Windows 98...it was kinda fun for a computer enthusiast.
Anyway, c'est la vie. Best Buy was just hanging on anyway. The days of the big box electronics retailer are over. It's all Walmart and Amazon now. Don't know if that's a good thing or not...
Re:What an extended warranty sales pitch sounds li (Score:5, Interesting)
When I worked for Sears ten years ago I refused to "push" extended warranties. I told the customer that for $25 extra they can warranty their refrigerator five years and get free replacement of food if there's a power outage or failure. Plus repair. 95% of the time they'd say "no" and I'd ask "Are you sure?" and then drop it.
Sears responded by pulling me off the floor (thus I earn no money except min. wage) and making me watch Warranty training videos, because my EW percentage was too low. Basically punishment.
I didn't stay at that store long. I thought it would be a fun parttime job for extra cash, but it made me feel dirty instead.
EWs truly are a waste of money. Appliances either suffer infant mortality (first few months) or end-of-life mortality (15-20 years). The infant mortality is covered by the manufacturer's 1 year deal, and EOL is just EOL. Extended warranty covers neither of these two cases.
Re:Gateway (Score:4, Interesting)
You've got to be kidding. User reviews are one of the best things about online shopping (the others are price and selection; it's a lot easier to see all the things that meet your requirements using "advanced search" on Newegg than to stare at a bunch of boxes on a shelf). Yes, many of them are bad, but many are good; you have to read them with a discerning eye, and you can frequently pick out some real gems in the reviews (either positive or negative--warnings about serious problems with the product, or detailed and useful information about the product that the mfgr didn't bother to include, such as which hardware revisions are compatible with alternate firmware and other esoteric stuff like that). What's the alternative? Listening to some know-nothing moron salesperson at a retail store? How is that an improvement?
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