Remove ads with our VIP Service
Share This Page
- Disney World Turning Epcot's Spaceship Earth Into Death Star for "Rogue One" Event - Video Added [12/2]
- Looking Back on "Casino Royale" 10 Years Later [11/17]
- Save $2 on 3 or More Movie Tickets - Good Through 9/25/2016 [9/20]
- Bakersfield, CA: KGET Takes a Behind-the-Scenes Tour of Historic Fox Theater [8/30]
- See a Movie at a Drive-in This Weekend -- Follow These Steps to Find a Drive-in Near You! [8/25]
- "Fantastic Beasts and Where to Find Them" Sequel Planned for 2018 Release [8/4]
- Looking Back at "The Devil Wears Prada" 10 Years Later [6/25]
- See "Warcraft" and Get Free "World of Warcraft" Game [5/18]
- On the 20th Anniversary of "Twister" Check Out This Stormchaser Tornado Video [5/12]
- If You Have QuickTime for Windows, Read This Security Warning [4/15]
Larry Downes wrote a story for Forbes.com in which he opines that Best Buy is slowly running itself out of business:
Electronics retailer Best Buy is headed for the exits. I can't say when exactly, but my guess is that it's only a matter of time, maybe a few more years.
Consider a few key metrics. Despite the disappearance of competitors including Circuit City, the company is losing market share. Its last earnings announcement disappointed investors. In 2011, the company’s stock has lost 40% of its value. Forward P/E is a mere 6.23 (industry average is 10.20). Its market cap down to less than $9 billion. Its average analyst rating, according to The Street.com, is a B-.Those are just some of the numbers, and they don't look good. They bear out a prediction in March from the Wall Street Journal's Heard on the Street column, which forecast "the worst is yet to come" for Best Buy investors.
Click the Read link below to view the full article, which goes through many convincing justifications for his position. It's well worth reading. It's enough to make an executive at Amazon.com smile with pride more than just a little.
While it almost seems as though Best Buy is "too big to fail," it's not all that unrealistic when you really think about it. Retail stores have been hurting for years, and recent history is littered with road kill of other big-name retailers that couldn't make it. Just recently, retailing giant Sears/KMart made headlines because of announcements about store closures and concerns about wholesale collapse.
Personal experience can be the best indicator of all, even if it is anecdotal. The problem comes in when a negative personal experience is repeated and people start sharing horror stories, and getting an overall negative impression of the company.
At a time when "buy local" is a catch-phrase that could be leveraged, retail stores that can't figure out how to serve their customers well will indeed run the risk of becoming the next flattened carcass on the road. In business, there's always someone out there that is willing to eat your lunch if you're not paying attention. I would love for Best Buy, and Sears for that matter, to figure it out before it's too late.
What do you think?
What have your experiences been with big box retailers like Best Buy and Sears? Do you buy from Amazon even if your local Best Buy has the same product for the same price? Ever been burned by the retailer's web site that made a promise that the local store couldn't keep?
Leave your comments below!
Add Your Comments
Please Note: These comments are submitted by the readers of The BigScreen Cinema Guide and represent their own personal opinions, and do not represent the views of The BigScreen Cinema Guide, or any of its associated entities.
Add Your Comments
|Commenting on Journal Articles is available only to our readers who have customized this site, which makes it easier for you to complete the form and for us to contact you with any questions or concerns about your comments.|
Please login or register a new account before continuing.
Log in to retrieve your saved settings.
Forget Your Passcode?Send My Passcode To Me
Not Registered? Create a New Account!
Our registered members enjoy more features, including:
- Save Your Location -- the site remembers your location, no having to re-enter it each time you visit
- Favorite Theaters List -- keep a handy list of the theaters you attend
- Favorite Movies List - movies you want to see, all in one place
- Write Movie Reviews -- share your opinions of the movies you see
- Block Ads with VIP Service -- view this site ad free (subscription req'd)
Basic accounts are free -- sign up today!
Concerned About Privacy?
Journal/Blog - The Marquee - Movie Links - News and Events - Now Showing - Reader Reviews
Customize - VIP Service
|The BigScreen Cinema Guide is a service of SVJ Designs LLC. All graphics, layout, and structure of this service (unless otherwise specified) are Copyright © 1995-2016, SVJ Designs. The BigScreen Cinema Guide is a trademark of SVJ Designs. All rights reserved.|
'ACADEMY AWARDS®' and 'OSCAR®' are the registered trademarks and service marks of the Academy of Motion Picture Arts and Sciences.