Best Buy founder Schulze gets 30 day extension on his bid deadline to conduct due diligence
0. phoneArena 15 Dec 2012, 01:20 posted on
Seeking to buy out his own brainchild, Best Buy founder Richard Schulze has received a 30 day extension of his deadline to make a bid for the big box retailer, so that he can conduct due diligence; the founder and former CEO of the Best Buy now has until February 28th to make an offer for the troubled electronics retailer...
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1. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
Given the recovering economy, I suspect Best Buy will do better this season than last season. Better sales on Best Buy's part should enable a better offer to be made.
9. miles16852 (Posts: 241; Member since: 20 Oct 2011)
Given the recovering economy, ! what GIVEN RECOVERING ECO! ?? LOL!!
10. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
The UE rate is lower than it has been at any point in the past 4 years. I didn't say booming economy; recovering is what is happening.
2. networkdood (Posts: 6330; Member since: 31 Mar 2010)
The problem with Best Buy is that they have appliances - get rid of the appliances and you will have more space to offer a greater selection of PCs, PC accesories, cameras, and you can even have more room for your 'mobile store' within a store - become an actual electronics/tech store. Expand on computer selection because every year they have a poorer selection of desktop PC.
Lower the prices on software - I can get it cheaper at Target or Amazon or Walmart - those 3 companies are Best Buy's main rivals - if they can improve their pricing/selection and redesign their ugly website (and give it better pricing), then they have a chance to get better.
Also, if you offer extended warranty - fully explain the process with the Black TIE warranty and make sure those people are trained properly for improved customer service over the phone.
4. tigermcm (Posts: 851; Member since: 02 Sep 2009)
they always price match so I don't see an issue with pricing
5. nak1017 (Posts: 328; Member since: 08 Jan 2010)
Floor space costs money and appliances waste a lot of it.
They compete with Homedepot in that category and can't hope to match them in either price or selection...
6. networkdood (Posts: 6330; Member since: 31 Mar 2010)
do not just match when asked - hardly anyone actually does the price match - they just need to lower their prices.
7. lsutigers (Posts: 819; Member since: 08 Mar 2009)
The problem with offering more and more PC's is that they don't offer good margins. In fact Best Buy, and Circuit City when they were around, actually lost money selling PC's, that's why they always pushed the Geek Squad / Firedog services and warranties, that's the only way to make profit in the PC segment. Consumer electronics profit margins have been declining over the past 10 years at a steep rate, you almost have to rely on warranties, services, overpriced accessories and good 'ole customer service which is where BBY needs to improve. All of that holds without even bringing in stiff competition from the likes of Walmart and Amazon which has very little overhead. They are doing good selling profitable mobile carrier plans but BBY has too much overhead an with today's savvy consumer, it will have a tough time as CC did.
8. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
I am starting to wonder about the Amazon.com business model going forward. Until about a month ago, the compelling value proposition for Amazon.com was no sales tax. For high value, low weight items (DSLR cameras, MacBook Pro notebooks, etc.), Amazon was a viable alternative (as in you would have to want instant gratification over saving coin on a purchase). Now with the sales tax being added and having to pay shipping, Amazon has not been competitive to BBY. Reward zone further impacts the value proposition.