Best Buy head honcho Brian Dunn resigns from his post as CEO
In what was mentioned as a mutual decision, Brian Dunn has resigned from his post as CEO of the nation’s largest consumer electronics retailer. Interestingly enough, there wasn’t any sort of disagreement regarding the matter – such as financial controls, policies, procedures, or operations. On the other hand, though, the company said that new change was needed in leadership to adapt to the challenges that the company is dealing head on.
Despite being Best Buy’s CEO since 2009, Dunn, who is only 50, has actually been an employee for the company for over 28 years. In fact, he started out as a store associate, and eventually moving up the ranks, thus, leading up to his tenure as CEO. Currently, board member Mike Mikan will be taking over as interim CEO, as the company shops around for a new leader worthy enough to turn around the struggling company. With the news about Dunn’s resignation, Best Buy’s stocks is actually up over 2.3%.
As we know, Best Buy announced closing 50 of its big box stores in the US – though, they still plan on opening approximately 100 small-format stores that’ll focus on mobile devices and tablets. Of course, it’ll be interesting to see how Best Buy as a whole will become an even more prevalent figure in the mobile landscape.
1. vvelez5 (Posts: 623; Member since: 29 Jan 2011)
Big box retailers are a thing of the 90s. Best Buy's future is in its stand alone mobile stores. You just can't compete with online pricing especially in the electronics department.
2. bolaG (Posts: 468; Member since: 15 Aug 2011)
Unless you do like Frys Electronics and price match amazon :)
3. vvelez5 (Posts: 623; Member since: 29 Jan 2011)
I honestly can't comment on Fry's since there isn't one in Florida. But I will say that most electronic retailers don't make their money on the actual electronics but the accessories. Not many people come in looking for someone to price match Amazon or any other online retailer for electronic accessories. But I will say that is pretty sweet that Fry's electronics offers that service. Also I don't know if Fry's is doing well or not so again I can't comment on them.
I used to work for Best Buy myself and that's how I know about how they make their money. Through accessories and warranties.
4. sgtdisturbed47 (Posts: 187; Member since: 02 Feb 2012)
Anyone who has gone to Best Buy in the last couple of years has seen why they are struggling. It's not all about prices, or employee competence, but it's a place that many are going to just "window shop". People are going in with their smartphone, taking a look/feel of the merchandise, scanning the barcode with their phone, and buying it from Amazon or eBay for 15-30% less [shipped]. It seems that big box stores are only catering to the impulse buyers, and those who have their own personal reasons for not shopping online. Best Buy, among other electronics retailers, make their money off of accessories, and since people can buy equivalent accessories on Amazon for a fraction of the price, they skip the cables and connectors and installation hardware at the time of buying their end-product.
We live in an Online Society, and people are buying online all the time. Shopping at a big box store isn't really shopping for a lot of people these days. They check out the product in-store, but buy it online from a competitor. In today's economy, people are looking to save money on everything, electronics included. If there is a competitor with consistenly lower prices, then people will gravitate towards them. Because Best Buy has a lot more overhead than Amazon, their prices must be higher or else they would go out of business.
Granted, not everyone does this, but the percentage is growing.
5. Das70 (Posts: 124; Member since: 05 Jan 2011)
Meh. Iw ould rather pay a hundred dollars more for a tv than get one through the mail. I have had so many lemons over the years with shipped product as well as store bought product that I would just rather have the easier option of returning it in-store. Thats worth the extra cash for me.
6. Virile (Posts: 38; Member since: 01 Mar 2012)
100% agree with you, the option to just walk into the store and get a refund or exchange makes the little increase in price way worth it. Opposed to ordering online and waiting for it to be shipped to you only to find out its defective and have to send it back in, hope the retailer pays return shipping and then wait all over again to get your product.
7. quryous (banned) (Posts: 106; Member since: 07 Mar 2012)
Bust Bye, like many "big" box stores, needs to shrink. They should mainly be an online business with a very small display store in major cities, carry only a few of each item for the diehards who are willing to pay excessive "instant" delivery prices, and just be a place for people to look at things they intend to buy on-line.
8. W.P._Android_in_that_Order (Posts: 207; Member since: 15 Feb 2012)
As a best buy employee, i 100% agree with you but i also think that expanding the mobile division was a good decision because thats where all of the money is at right now.