Best Buy Set For Tenth Straight Quarter of Sales Drop (reuters.com) 42
An anonymous reader quotes a report from Reuters: Best Buy is set to post its tenth consecutive quarter of sales decline on Thursday when the U.S. electronics retailer reports quarterly results, as spending on big-ticket electronics remains pressured despite easing inflation. Although results from big-box retailers Walmart and Target indicate that consumers have resumed spending on less-expensive discretionary items such as apparel and accessories, they are still hesitant to go for TVs and washing machines. UPDATE 5/30/24: Best Buy's quarterly profit exceeded Wall Street estimates due to improved demand in its computing category, cost-saving efforts, and a successful membership program, leading to a 10% rise in shares. "Demand for artificial intelligence-enabled laptops as well as higher-end televisions is helping Best Buy regain lost ground on sales in the country as consumers look to upgrade or replace their gadgets after more than two years of restraint on spending on electronics," reports Reuters. "The company is also banking on the launch of Microsoft's AI-powered Copilot+ PCs, which are expected to go on sale on June 18."
"Best Buy CEO Corie Barry said on a post-earnings call that the company expects to have more than 40% of the product assortment at launch exclusive to the company. The company has also benefited from people signing up for its two-tiered membership program, which it refreshed last year, helping the top electronics retailer in the United States retain shoppers and drive better margins."
"Best Buy CEO Corie Barry said on a post-earnings call that the company expects to have more than 40% of the product assortment at launch exclusive to the company. The company has also benefited from people signing up for its two-tiered membership program, which it refreshed last year, helping the top electronics retailer in the United States retain shoppers and drive better margins."
Yea, and this suprises who? (Score:5, Interesting)
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Not a fan of Best Buy at all but I'd say it's part of a general tendency. We, as customers get what we deserve I'd say. I never bought a single thing from Amazon. I live in a big city and gladly enough, there are still a bunch of small shops around to fulfill all my IT and other needs.
Blu-Rays (Score:3)
The last things I bought from Best Buy and, really, the first things that I had bought from them in a decade, were their Blu-Rays when they were clearing them out. I was getting them for $5 for Blu-rays, and $10 for UHDs.
Anyways, the last order I put in for in-store pickup took twenty minutes for them to find my order. It was on a Wednesday night, they were dead, and three people ended up being dispatched to find my four Blu-Rays. Which kind of confirms why I don't shop there any more.
Re:Yea, and this suprises who? (Score:5, Interesting)
For me, they killed their reason to exist.
My wife wanted a new keyboard, but she wanted to see and feel it first. Best Buy would not allow us to open any boxes to see and feel them. We could go through the hassle of buying and returning if we wanted.
Since I can buy and return keyboards online, what's the point of a physical store that won't let me actually see and hold the merchandise?
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Our local Best But has floor models you can try of a lot of stuff including keyboards. Doesn't yours?
Just a few.
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And no demos to try. :(
They didn't kill it (Score:2)
Plus Very few people collect reams and reams of DVDs and old video games. And most gamer are playing online multiplayer games.
It doesn't help that anyone under 30 is unlikely to own a house or even live in a 1 bedroom apartment that belongs to just them. Most of 'em are lucky to have 1 bedroom to themselves with their 3 roommates. We had
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Let me propose a far better overgeneralization of the problem.
People don't die and people aren't born.
We pay ~11% of our earnings for ~45 years into a system which we then depend on for ~90% of our entire income for another 15-30 years. Young people start work later, used to be ~19 on average, now ~23 and they earn considerably less relative to cost of living than their grandparents did. And there are about 1/8th as many people in their tax paying prim
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Physical media is bad for retail brick and mortars as it demands a lot of space, but doesn't carry much profit. You want to carry a wide selection, but that requires long aisles, but with fewer people buying these days you can't justify the expense of keeping aisles of physical media that don't move.
So it's one of those things that's just better online - where you have unlimited aisle space and don't have to dedicate tons of square footage of expensive retail space for. Warehouse space is cheap and you can
Re: Yea, and this suprises who? (Score:2)
And yea, I get it, most people aren't buying physical anymore, but for myself steelbooks were the last thing I was buying there
They have nothing I need on a regular basis. (Score:3)
Desktop Mechanics. (Score:1)
They don't sell computer parts or even media now. Its pathetic.
Parts? Parts for what? exactly?
A ‘computer’ today has nothing even spinning inside the sealed chassis, measures storage with “memory”, soldered every component in place, and is advertised in millimeters-thick.
Gonna have to go elsewhere to maintain that old school gas guzzler desktop muscle now.
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They don't sell computer parts or even media now. Its pathetic.
Parts? Parts for what? exactly?
I dunno, things like:
Granted Best Buy may have never sold some of that stuff, but those are all parts people still buy in decent numbers for building/upgrading their own stuff. Walk into a MicroCenter and you'll see what I mean.
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To compare the desktop muscle analogy, you might as well be speaking about twin-turbo intercoolers, racing slicks, and E85 fuel pumps, which you are not going to find at your local Walmart.
The percentage of consumers maintaining the kinds of chassis and options you’re wanting, has shrunk considerably. Best Buy markets in the mainstream common goods definition of a “computer”, which is far from being something you can “wrench” on these days.
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I was shocked to see my local Best Buy had GPUs in stock. 4070 SUPER, on the shelf. Locked behind glass of course, but there for me to see. I was looking for a new gaming PC, their selection was unsurprisingly bad. My local store is a half sized location, in my extended neighborhood. Not like the big box versions at the malls. They didn't even have a PC with a 4070 in it, much less a new version.
I once saw an PSU at BBY for $100 more then an oth (Score:2)
I once saw an PSU at BBY for $100 more then an other store and that other store was online and in person.
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This must be terrifying for BB Employees... (Score:2)
spending on big-ticket electronics remains pressured despite easing inflation.
Because the new stuff doesn't typically deliver a compelling amount of bang-for-buck over the existing stuff. Half of me wants to upgrade my 15-year-old LG Soundbar. The other half realizes that I'm unlikely to get better sound without paying for a premium tier unit. I can't be alone in some variant of that.
due to improved demand in its computing category
If I were to venture a guess, it's that folks who got laptops during the initial Covid lockdowns four years ago are starting to come due for replacements, especially if they got a low end laptop at the t
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Not sure where from; it's been impossible to find an employee on the sales floor for years.
Not sure about that as the few times I go to BB, there are a ton of blue shirts milling around. It's probably a 10:1 ratio vs. customers.
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They just had big cuts in staffing.
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P.T. Barnum (Score:4, Insightful)
Analysts have also said that the rise of artificial intelligence may have delayed purchases as some higher-income shoppers await upgraded laptops with AI features
Again I guess P.T. Barnum was right.
Best buy dies because they employ dumb people (Score:3)
Saw it happen on a smaller scale with Fry's Electronics. When Fry's started, at least here in the bay area, they had to compete with some pretty hefty locals. JDR, Quement to name a few had people that actually knew WTF they were talking about. You could go there and talk to people about component level circuitry. The mid to late 90's (think pentium pre-mmx era) were a pretty tumultuous time here in the bay area for PC's. Besides those big 2 we had radio shacks, and 100's of small computer shops. Fry's had to compete not just on price, but expertise as well.
Once they were able to eliminate the competition, Fry's stopped hiring smart people. At the end Fry's became no better than a Walmart, but instead of associates hiding from you, you wound up with a ton of people fresh off the boat, circling you like buzzards trying to get that mousepad you were holding onto a quote sheet so they could earn a commission.
I've seen Best Buy become like Walmart. The associates seem to hide from doing any customer interaction, instead choosing to walk aimlessly around the store talking to other associates. If you do happen to get one, like Fry's in their sunset they don't seem to be capable of offering any help or advice. Best Buy *IS* Walmart now, except more expensive and decorated a bit better.
Some people want to cite the dearth of physical media, but Walmart still sells that stuff by the shovel load. Big ass bins of unassorted DVD's and Bluerays for $5. Not only can I buy a gaming laptop at Walmart, but I can get my groceries, a dishwasher, and tires too.
they want people who can sell and not the smart pe (Score:2)
they want people who can sell and not the smart people who know about ripoff up sells.
And some geek squad stuff was only done if you paid for an membership.
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Eh, I briefly worked for them about 25 years ago now when I was going to college and Best Buy was shit back then too. The managers were for the most part miserable people who took their misery out on their subordinates. Outright lying to the customer to make a sale was absolutely normal. I didnt really fit in there and left after about 9 months.
Between high school and college I did quite a bit of service industry type work and Best Buy was by far the worst company I worked for. Most of my other jobs during
sales (Score:1)
Warranty Service and Support (Score:3)
Sure you can buy online, but let me know how you can try out the laptop/computer/television before you buy it. Good luck with that online.
Is Best Buy a victim of Apple? (Score:2)
TVs? Well...I just don't care...I can't tell the difference between a cheap TV and an ex
Nothing left in the stores (Score:2)
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Since the days of CompUSA and Fry's have past, you can't find physical stores that sell actual computer gear anymore.
Unless you are lucky enough to live near a Microcenter. They are pretty much the only physical store I go to for anything computer related anymore.
Also BestBuy.com is a clusterf**k (Score:3)
A few years back, I won a BestBuy gift card at a holiday raffle fundraiser. Cool...so I see something I wanted and buy it for store pickup and they screw it up...OK, no biggie. Eventually they ship me the correct item. I hated the experience, but not a big deal, every retailer makes mistakes. Between that and a sale they had on an Apple product, I ended up with like $40 in loyalty points and used it to buy some Christmas presents for the kids.
FedEx screws up and says the package is delivered, but it wasn't. My neighbor across the street has a ringcam and she confirms no one delivered anything that day (I was also home as this was during the pandemic). OK, so I contact customer service and they give me 2 choices: either ship a new one or get a refund. I chose a refund so I can go buy the item in person at the local store so I can give them to the kids for christmas
They never refunded my balance. I called them every day for like a month...just out of anger and principle and each them, I'd get transferred like 3x before they hung up on me because no one knew what to do.
Finally, there was a sale advertised and I bought an iPad from them...similar story...arranged for in-store pickup and they didn't have it.
Every experience I've had with them is terrible...ranging from making a trip to buy something their website says is "in-stock" (while I am literally in the store) & it isn't to online and in-store pickup orders being messed up.
Retail is a shitty industry. Margins are small and competition is fierce. Electronics is an area where online shopping is usually better....so if Best Buy wants to survive at all, they really need to up their game. Sadly, the highest profits to go big spenders and big spenders want shit on time and a good retail experience. Best Buy in my area doesn't provide that. The only people I see shopping there look pretty poor and there aren't a lot of them. It's basically the clientele you see at WalMart and McDonald's, not the local Starbucks or Apple Store. I am honestly surprised our local Best Buys haven't gone out of business yet. Target is cheaper and more convenient and their prices are almost always full retail. I am not sure what scenario Best Buy is the right decision.
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I also had bad experiences with BestBuy and would not buy anything from them if I could possibly avoid it.
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Best Buy Slowly Dies Like Many Before It (Score:2)
Radio Shack
Circuit City
Incredible Universe
Fry's
And I am sure there are others that I don't know about.
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CompUSA (or Soft Warehouse, if you can remember back that far)
I don't know what it is, but electronics stores can't seem to say in business, even though it seems like a slam dunk. I wonder how much longer Mircocenter will be around.