Best Buy Implodes
Best Buy, the popular retail company has been in the news for the past few months now. The news is all about the state of the company’s share price in the stock market. The company is on the way to shifting to a new business model with mobile sales and smaller stores in plan. A reliable source said that, the plan is to boost the sagging revenue of the company and also help in competing with rivals such as Amazon and Wal-Mart.
Best Buy’s Big Box Stores in the state will be closed – and it has been confirmed by the company that 50 will close down this year, 2012, the company said early in the morning today.
In its plan to get back into the business, Best Buy will test the new model stores in several popular places such as Texas, San Antonio and St. Paul, Minneapolis. The renovation of the company would reduce store square footage by at least 20%, and it should be finished by the end of this year, maybe around the next Christmas.
The source said that the those new “Connected Stores” will focus more on selling cell phones, tablet computers & e-readers. Also, the store will feature other service plans that were not offered by Wal-Mart or Amazon.
Please watch the video below for an interview about Best Buy and some other information.
CEO Brian Dunn said:
“he is not satisfied with how quickly the company is responding to a rapidly changing retail environment. Investors don’t seem satisfied either; Best Buy’s stock was down in morning trading.”