Thursday, March 29, 2012

Amazon is slowly killing Best Buy...

Best Buy’s announced it is closing 50 big box stores in 2012, shares plunged 8.1% to $24.47 in early trading today.

"Critics have noted that its expansive, attractive stores have essentially become showrooms for online retailers like Amazon: Customers go to Best Buy to see a product, and can quickly use a smartphone to find a cheaper price online. This has led to six straight quarterly declines at stores open at least 14 months, including a 2.4% dip last quarter." Scary numbers...

It's not only Amazon that is putting pressure on the retailer, but a host of other online only retailers including newegg and buy.com, all of who like the model of using Best Buy where consumers try out the products and ask BestBuy workers about the items of interest and then go back and buy it online... A business model that will not be in BestBuys favor....

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