I was checking something on their website and I noticed they had a category for books. And I said to myself “Oh, yeah, Best Buy used to sell books.” It was never a major item for them - they usually had a single shelf of books. But the local ones I shop at no longer stock any books at all. Is this just a local thing? Or have Best Buy stores all gotten out of book sales?
My second question is about used DVD’s. I’ve noticed for the last few months Best Buy has been offering to take used DVD’s for store credit if you’re buying new Blu-Rays. They must have some plan for these used DVD’s. Are they selling them off to some other dealer or is Best Buy planning on getting into used DVD sales when they accumulate enough discs?
I vaguely remember seeing like a half-rack of books at our local Best Buy sometime in the last few months. It may have been something they were doing just for the holidays.
And Best Buy is (or has) experimented with used sales. They talked about getting into the used game market last year and I think I’ve seen a few of those on the shelves still. (They were trying to compete with GameStop.) I don’t know how well it worked out.
Best Buy’s business strategy of late seems to be “flail about wildly” so I’m not sure they have a clear plan beyond pushing blu-ray discs and players.
The workers there don’t work on commission except for the plans they upsell, right? Even so, when I was there last time, I was simply pricing a replacement Iphone/Ipodtouch power chord. The dude showed me the chord, then showed me the one that comes with a wall-plug attachment. Very helpful for an extra $2. Thing is, he put it in my hand for me to buy. I had to say, “Actually, I don’t think I’m going to buy anything today, I’m just pricing.”
I wonder if they are under pressure to sell items now as well.
No, they haven’t been on commision since 1989, even for upsells like extended warranties and accessories.
Best Buy has always been experimental with odd choices. Anyone remember them selling treadmills? Gourmet foods? Home security systems?
They spent a boatload trying to break into the musical instrument market but I don’t think that has worked out for them.
They also bought out a high-end home theatre company (Magnolia) to break into that market and that seems to have failed.
They also failed when buying Musicaland/SamGoody/OnCue and drove that into the ground.
Actually, I thought that the Magnolia high-end theater business was a good idea. With HDTVs becoming cheaper, a lot more people can afford to put together a home theater system (I think you can do something for under $10,000 that’s quite nice), and so there are enough people out there who need help with selecting the components and installing the system.
They announced a plan a month ago to close 50 of their big stores and adding several of those “Best Buy Mobile” kiosk stores in a bid to save money.
While getting more efficient by trimming costs can be a good idea, it’s also not the kind of thing a healthy company does. Also, the stock price has been trending down for the last 6 years and the CEO just resigned in the face of ongoing losses.
They’ve been hit or miss over the years with their throw everything at the wall and see what sticks approach.
And while they have had phenomenal success getting to where they are, they are actually not doing so hot as of late. Falling stock price, sales down, CEO resigned amid scandal, store closings and restructuring, etc.
I don’t think it’s anything they’ve done wrong but rather a massive change in market demand for what they’ve sold.
CD sales, which used to be the entire center of their stores, are gone with everyone going downloads.
Home audio HI-FI is a disappearing market. Nobody buys tower speakers anymore, or seperate components, or even shelf systems/boom boxes.
Car-audio has shrunk since auto makers now make their systems integrated into the dash and are harder to swap out and offer premium sound systems when you buy the car.
Desktop PCs are more scarce. No more buying tower/monitor/scanner/printer sepaerately with all the cables. Laptops and tablets have taken over.
Not to mention the sales taken away by the internet. BestBuy has become the hands-on showroom for products that people will go home and find for the cheapest price on Amazon.
Which is happening to a lot of stores. Target announced in the past week or so that they will no longer carry the Amazon Kindle because they are “tired of being Amazon’s showroom”. ((I’m sure the fact that they now have an Apple store within a lot of their stores had nothing to do with that))