Best Buy to follow Circuit City's demise?

[Matthew DeCarlo]

With former heavyweights like Circuit City out of the game, industry experts are questioning the future of remaining electronics superstores. Wall Street Journal reports that retailers like Best Buy have taken staggering losses as online rivals rise to dominance. Although there are less brick-and-mortar competitors than a few years ago, Best Buy's stock has plummeted some 19% on-year. By comparison, Amazon's shares increased 31% in the same period.

The transition from retail to etail consumption is especially apparent in electronics-related departments. Amazon's electronics and non-media revenue rose 66% to $18 billion last year, which included a substantial market share increase in segments including LCD TVs and portable audio devices. The shift is mostly attributed to the obvious: shopping online is often cheaper, easier to compare products, and it's simply more convenient to shop from your home or mobile device.

Despite its losses, Best Buy isn't exactly sinking -- or at least not yet. The store still represents a third of US consumer electronics sales and it's actively pursuing more competitive prices -- but lowering prices in itself could spell doom. The WSJ report notes that BJ's Wholesale Club also decided to cut prices in 2002 in an effort to maintain its market presence, and while sales improved, gross margins tumbled for eight consecutive quarters and shares fell more than 70% on-year.

Greg Melich of ISI Group made an amusing but accurate comment, noting that shoppers often use Best Buy as Amazon's "showroom." In other words, people frequently visit physical stores to test products before purchasing them online -- something the TechSpot staff is admittedly guilty of doing. Do you visit Best Buy solely to window-shop, or do you actually break out the credit card occasionally? Personally, I haven't been to a Best Buy in about five years, perhaps longer.

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https://www.techspot.com/news/42713-best-buy-to-follow-circuit-citys-demise.html

 

[mrtraver]

I most definitely use Best Buy as a Newegg showroom, but I rarely make large purchases there. I did by a $230 camera there recently that I could not find cheaper online or in any discount stores, but I usually don't spend more than a few dollars at a time. I do like the convenience of taking home a CD, recordable media, etc. on the same day rather than waiting for it to be shipped, sometimes smaller items are cheaper since I don't have to pay shipping, and occasionally they will have a good sale or clearance item.

 

[p51d007]

I hope BB doesn't go anywhere...where else can I waste a few minutes, listening to the blue shirts lie to people that are wanting help LOL

 

[spartan948265]

BestBuy is always over pricing all of their inventory. They also slap on ridiculous sales taxes and after fees. Lets say a TV costs $599. After their taxes and sales the tv now costs $799. Source? Personal experience.

Also, NewEgg for the win. ALWAYS

 

[BlindObject]

I worked at Circuit City when they closed down..sad times. PC Richards now owns the place. Anyway, I kinda wanna see BB go down the same hole, Geek Squad alone is ridiculous.

 

[BrianUMR]

"The shift is mostly attributed to the obvious: shopping online is often cheaper, easier to compare products, and it's simply more convenient to shop from your home or mobile device. "

Shopping online is often far far cheaper. It is easier to compare products because typically Bestbuy only has one product to look at. I really don't think shopping online for many things you would get at bestbuy is more convenient online. However if I need a new network cable I would rather wait a couple days than have it now and pay over twice as much. For most things like cables and other accessories the Bestbuy brand is way lower quality and costs over twice as much money.

 

[matrix86]

The only use I got out of BB was that it gave me something to do when I needed time to kill, and it gave me a chance to try out laptops to see if I liked them or not. Other than that, i've never actually bought anything from them. Part of the reason they are so expensive is because they run a website and physical stores. That means they spend more money, which results in us having to spend more money.

Newegg...FTW.

 

[DokkRokken]

I buy stuff from Future Shop (BB owned) and BB somewhat often, but only if it's something on sale like cheap headphones that I can buy a couple of and trash during my commute.

 

[3DCGMODELER]

By By

Best Buy ...

 

[Guest]

PC Richards doesn't own CC online. Systemax owns CC online which owns TigerDirect and CompUSA.

 

[Raswan]

Worked for Best Buy for four months, which is about six years in retail years. They jack the price of everything up, upsell worthless extra crap, and provide weak customer service. As the fear of buying online continues to erode (it's all but gone, though still lingers for the over-fifty-five crowd) and Best Buy loses their "credibility" with the consumer, Walmart will be the only retailer selling electronics to be left standing. And that will only be because the rank and file will go there to shop for everything else already.

 

[Guest]

Best Buys down fall will be their poor customer service and worthless managers in most of its stores.

Even if you do find someone to help you, most of the time they dont know the product at all.

 

[Guest]

I bought a pair of speakers at Best Buy two years ago for $59.99 regular price. Now they are $149.99. a 150% price hike! Ridiculous.

 

[Guest]

I tried to make a purchase at BB a few months ago. Ordered online for in-store pickup. I did NOT receive a confirmation 'till 3 or 4 days later and when I went to the store a couple of days later, I was told my ordered was cancelled and there was nothing that could be done about it.

No more BB for me.

 

[Nima304]

I hope BestBuy dies. I feel sick listening to their tech staff talking about things they barely understand themselves. NewEgg is a lot simpler, cheaper, and all around better than BestBuy and all stores like it.

 

[gwailo247]

While I don't usually shop there, I wouldn't exactly cheer when a big chain closes down. They don't seem to be replaced these days by anything other than a Wal Mart.

 

[mccartercar]

Newegg:
Documented and not biased Customer Reviews-check
Low Prices-check
Best Goddamn customers service of any supplier of goods in the industry- double check
Wide selection of products with broad ranges of variety-check
Accurate factual descriptions and technical specifications easily sorted-check

Bestbuy:
Mismanaged,Understocked, Highest prices with lowest qualtiy, Bs spewing loudmouths with blue shirts
-check

 

[Guest]

BB employees are morons and shouldn't be giving anyone advice on buying anything they sell. I love going there to hear them talk BS to a clueless customer. Yes, Maam, this GOLD PLATED HDMI cable with look signifigantly better..........for only $79.99. But the truth is, all those customers who refuse to educate themselves on products they may spend thousands of dollars on, deserve what they get.

 

[Sarcasm]

I shamefully admit that I used to work for Best Buy (many years ago) and I'd have to add that not only is everybody correct about their comments on Best Buy, but it's also a terrible place to work. Any employees that actually "knew" what they were talking about were under paid, under scheduled, and over managed. Then the managers were power abused mindless pricks who didn't know jack about any of the products. I still remember those crap meetings about "oh we're not pressuring you." but as soon as I didn't mention those service plans or upsell, I get in trouble. What a load of crap these places are. Now of course that was my experience a long time ago, but walking into these stores it doesn't look much different.

Today though, I admit I do just window shop for certain products and "test drive" them. I find that the prices are over priced compared to everywhere else but the only time I actually make a purchase is sometimes they have their deals in which in a rarity it's cheaper than other places. Even then they're poor customer service is also terrible.

 

[Xclusiveitalian]

Best Buy overprices everything, and i hate how they never have games on release dates. I wouldn't want it to go anywhere because i do sometimes buy there when there is an actual sale.

 

[Guest]

IMO, only electronic noobs go to bestbuy whenever Fry's is available locally. Price is most of the time much cheaper at fry's (since BB always has much better/pricier locations)

But yeah, tigerdirect and newegg usually beats most of the local stores prices and works when you can wait for the shipping.

oh btw, fry's is now matching online prices!! at least in my area.

 

[Guest]

I never shop Best Buy because their price is rediculous. For online shopping, I choose Amazon over Newegg, because:

1. They offer free shipping on most item
2. NO TAX (almost 10% now)
3. Usually cheapest price I can find for any item
4. Return policy is wonderful. Anything happens, you got full refund, and they even pay for return shipping
5. With prime membership, you get 2 day shipping free, next day for 3.99!

Check them out. I used to shop at Newegg, and now, Amazon only.

 

[Guest]

No kidding about Newegg's great support. I got a defective drive from them once and emailed them about returning it, and the phone rang five minutes after I had sent it. I couldn't believe it. Anyway they sent me a paid mailing label and everything and I got my replacement in a few days.

 

[mailpup]

2. NO TAX (almost 10% now)

Unfortunately, that is true in California where I live but Newegg doesn't charge sales tax for most other states, just a few.

 

[Scshadow]

Lol, having a physical retail store isn't the problem. The problem is best buy sucks. They lie, they cheat, they steal. If Best Buy were to go under, then it might be some sign that people realize that they were getting robbed blind. I'll drive 2 hours to a microcenter. Thats where my business is at.