Best Buy

Best Buy (BBY) - BidnessEtc

The recent trends have not gone in favor of Best Buy Co., Inc. Reduction in prices of Consumer electronics such as T.Vs which consist of a large chunk of revenues for Best Buy Co., Inc. have forced Best Buy to increase the variety of T.Vs in order to enhance the Retail margins earned on sales of T.V’s. The concerns remain whether it has done enough to diversify its inventory enough to offset the change. Along with T.Vs, Personal Computers have also seen reduction in prices. The 2013 holiday period also did not work in their favor as revenue moved backwards to the surprise of sales executive of Best Buy Co., Inc. Another problematic trend for Best Buy is the comeback of its market rival Amazon and other small scale online retailers. Investors were worried that Best Buy had stopped doing business with many customers due to the price falls experienced by these products. The falling of confidence in Best Buy has not helped the investors. Amazon is on the charge due to impressive selling of its product range of Kindle tablets whereas Best Buy has nothing to offer in this regard. The appointment of the Hubert Joly as the new CEO in August 2012 was seen as cause of optimism but that too was short lived as even he couldn’t offset or provide a solution to o these trends above mentioned. With time though there is no doubting the fact that Best Buy Co., Inc. once gets over the reshuffling of its upper brass will get in the groove very soon.