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Best Buy Store Closings Map (as of 4-16-12)

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  1. walter permalink

    Even though domestic performance has been mostly stable, Best Buy has been under pressure from online and omnichannel consumer electronics retailers. Visiting any Best Buy today underscores that they need to reinvent the model. Selling popcorn makers, washers/dryers, and small electronics items does not feel like the highest and best use of the Best Buy business model.

    This is not an easy task. Consumers seem to have become trained to buy the lowest cost products – with little brand loyality – as they had when Best Buy rolled out their big box concept. Low margin items, such as CDs and DVDs have also been ejected from the stores as consumers have turned to online fulfillment. Add to that, gaming platforms that are in the doldrums and new computers that offer less replacment urgency – and you have a corporate boardroom challenge.

    At $50 billion in sales, I do not think Best Buy will disappear anytime soon. Reinventing the stores to drive shopper traffic with a renewed excitement will confound senior execs for some time, though. Best Buy rode the wave of big screen adoption, which is now mostly complete. Even bigger screens, 3D, and whatever else comes next will not have the same impact.

    So, what is next for Best Buy? The next major revolution is full connectivity between all of our mobile and home devices that goes beyond WiFi. This will drive the consumer, but that next revolution is not here yet. Until then, we will have to wait and watch Best Buy. For some landlords, this will be a stressful time.

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