Best Buy closes 50 stores

[Andrew H.]

Originally Posted by Barty

but the bottom line is BB just cannot continue to provide free show rooms for tax free, lower overhead e-tailers like Amazon. What's going to happen here?

I don't think that BB is actually providing free showrooms for Amazon, etc. (Although I think bookstores might be). I'm not sure how much overlap there is between what BB offers and what Amazon offers - BB seem to always have slightly different models than what Amazon offers. And, in any event, it's not like I really need to take a computer out for a test drive.

I think the problem that BB has is that it has basically the same retail model as Amazon. But Amazon does it better.

The original big box store concept was that a retailer would open a giant store with a huge selection of products, low prices, and minimal customer service. This model drove out smaller, more expensive specialty retailers, with smaller selections, higher prices...but often knowledgeable sales staff.

But then Amazon came along with an even larger selection of products, lower prices, and cheap home delivery, which took away a lot of BB customers. (Although Amazon wasn't the only one - you can buy computers and flatscreen TVs at Target and Walmart now, which will also undercut BB).

And BB is also under pressure from even larger, cheaper big box stores like like Fry's.

[fjtorres]

B&M retailing comes down to revenue per square foot.

Over the years, many companies have tried different ways to maximize their revenue by increasing their product offerings while minimizing their warehouse and showroom costs.
Showroom stores have been one of those attempts:
http://en.wikipedia.org/wiki/Best_Products
We may be ripe for an update of that model. (Quite possibly by, yes; Amazon.)

Sears, for one, long ago cancelled their catalog mailings but have more recently linnked their B&M and online storefronts into a unified operation; not only do they do ship-to-store internet sales, but their B&M staff can look up and special order any item right in the store. All they are missing are self-serve in-store terminals pre-linked to online extensions of the displayed products. (For example, in the HDTV area the terminal would access other TVs in stock at the regional warehouse so they would only have to display one model in a given brand's family. For example they could display a 60in model and order the 55 and 46 equivalents via the terminal. Make the terminals big, catchy and easy to use and they'd be a better use of space than stock three sizes of the same TV.)

B&M retailing is no more dead than pbook publishing.
But both need to update their business models and internal workflows to survive.

Which I suspect a few will do because, to paraphrase: "Nothing focuses companies quite like the prospect of Chapter 13."

[Pomtroll]

Originally Posted by tubemonkey

Best Buy to Open 100 New Mobile Stores

The other half of this story that hasn't been mentioned yet is that Best Buy will also be opening 100 new Best Buy Mobile stores.

We have a Best Buy in Mankato MN (south of the Twin Cities) but I just saw a Mobile Store opening in our major mall. I'm wondering how much longer our bigger store will be open. Business is not as good as it used to be.

[monkeyluis]

It's not that I don't mind BB stores I just can't stand people anymore.

[Shack70]

Originally Posted by monkeyluis

It's not that I don't mind BB stores I just can't stand people anymore.

lol!

I love that when you go in Best Buy to look around you get asked by every sales person if you need help. Go back in to actually buy something and you have to beg for help. I'll miss being able to see the stuff I want to buy from Amazon in a show room setting.

[Kumabjorn]

Originally Posted by monkeyluis

It's not that I don't mind BB stores I just can't stand people anymore.

Another sign of the IKEAnization of retail. It's come to the point in Sweden were customers get real annoyed if sales clerks approaches them.

If your work depends on tips, never ever acccept Swedish customers, hand them over to your worst enemy. It isn't that they are cheap (but yes, part of the equation) but they just find American sales people and waiters/waitresses way, way, too pushy.

[JSWolf]

The problem is that a lot of the things we buy these days are based on a guess. We have no way of seeing the items for sale in person and we rely on reviews and opinions of others. Then we order and have to way a week or so to get the order.

Gotta miss the old days when you could actually buy things in person.

[monkeyluis]

Originally Posted by Kumabjorn

Another sign of the IKEAnization of retail. It's come to the point in Sweden were customers get real annoyed if sales clerks approaches them.

If your work depends on tips, never ever acccept Swedish customers, hand them over to your worst enemy. It isn't that they are cheap (but yes, part of the equation) but they just find American sales people and waiters/waitresses way, way, too pushy.

I'm talking about the general public. Lol. They just get in the way & annoy me.

[Andrew H.]

Originally Posted by JSWolf

The problem is that a lot of the things we buy these days are based on a guess. We have no way of seeing the items for sale in person and we rely on reviews and opinions of others. Then we order and have to way a week or so to get the order.

Gotta miss the old days when you could actually buy things in person.

Amazon Prime helps - I get about 1/3 of my Amazon prime orders the next day, even.

[wannabee]

Originally Posted by wizwor

I think the eventual model will be showrooms with product shipped from warehouses.

It's already happening. However the showrooms are rented billboards now.

[tubemonkey]

Originally Posted by Andrew H.

Amazon Prime helps - I get about 1/3 of my Amazon prime orders the next day, even.

I tried the Prime bit, but gave it up when Amazon ripped me off. Now I'm back to shopping in person for stuff I want. It was nice getting things in one to two days, but it's no big deal to wait for my weekend trip to the big box stores.

[carpetmojo]

Originally Posted by tubemonkey

Best Buy to Open 100 New Mobile Stores

The other half of this story that hasn't been mentioned yet is that Best Buy will also be opening 100 new Best Buy Mobile stores.

So.... thats guys/gals driving around in big trucks, then, right ?

That definitely sounds like a plan for world domination, nice one ....

[tubemonkey]

Originally Posted by carpetmojo

So.... thats guys/gals driving around in big trucks, then, right ?

That definitely sounds like a plan for world domination, nice one ....

[cHex]

I like what Frys does--they will match a price found on the Internet (including shipping). I've taken advantage of this several times; you have to point out the Internet page in the department where the item originates and get a printout from them, but other than that its no hassle.

[heeby]

Originally Posted by Shack70

lol!

I love that when you go in Best Buy to look around you get asked by every sales person if you need help. Go back in to actually buy something and you have to beg for help. I'll miss being able to see the stuff I want to buy from Amazon in a show room setting.

Sometimes I think they do it on purpose to amuse themselves. I was there today and the first guy asks me and I say "I'm fine thanks" and not even 5 seconds later another guy comes down the aisle and asks again and as he is walking away ANOTHER guy comes up and asks me. I just looked at him with the "Are you kidding me?" face and he stands there. I asked him how it was possible he didn't see me talking to his coworker as he walked up and he just said "If there is anything you need let us know." and walked away. As pushy as they are I think the "no commission" thing is a lie. Not going to bother going back.