Best Buy Going Bye Bye
Bad news for all the Best Buy lovers out there, the company is about to be in financial dire straits and will most likely not be around in the next 5 years. According to several sources I have read Best Buy is in a world of hurt. Its last earnings announcement disappointed investors. In 2011, the company’s stock has lost 40% of its value. The forward price-to-earnings ratio is a mere 6.23 (industry average is 10.20). Don’t worry Wal-Mart is not going anywhere. As I am sure most of you know when all the competition is gone and products are in high demand. This puts the retailers in a position of power, they are no longer worried about your business per-se, and they are worried about there own bottom line. Really Best Buy closing only makes sense, Circuit City was a bigger company and they went to hell pretty damn quick. To be honest the customer service at Best Buy is really not that good. They usually employ a chick and assign her to work in the movie section, problem is the girl does not know if Die Hard is a comedy or action flick. I have been several times and the sales associates are really not able to provide some basic answers. I cannot tell you how many times, I have made the annual trek to Best Buy for Madden. My experience is the same every time, the damn game never seems to be on display and I usually have to ask the cd chick to run to the back and grab me a copy. I had a friend get an aftermarket cd player for Christmas bought at Best Buy costing about 100 bucks. When he went to see about the installation, Best buy informed him it would cost over 200 bucks to get it installed…not a good way to do business. Most people buy electronics online and hate even leaving the house to do so. I predict the electronic landscape to switch from retail stores to simply online retailers in the near future. So this is just a heads up, because I know some of my friends love Best Buy. As American’s have fallen in love with convenience, being able to purchase almost any item with the press of a button. It will ultimately come at the expense of us running the actual stores into extinction…that is the word!