Subject: General Tech | August 6, 2014 - 10:58 PM | Scott Michaud
Tagged: best buy, tablets, convertible, laptop
Hubert Joly, CEO of Best Buy, talked with Re/code about the overall health of their company and various industry trends. The first question (at least in the order Re/code presented them) asked about the decline of the PC industry. He responded that PC sales are actually recovering, to some extent, but that Android tablets are, now, "crashing".
His view is that laptops are adopting the successful bits of the tablet market, especially as a result of various two-in-one initiatives. He believes students, in particular, appreciate tablet/laptop hybrids. This is certainly what Intel has been hoping for, through its recent Ultrabook efforts. He hopes that innovation will be done at the high end, so consumers will not simply settle for the $300-tier.
He did back off on his "crashed" statement, regarding the tablet market, however. The growth of tablets, from the start, were amazing. However, like the argument with "good enough" PCs, there does not seem to be a compelling argument for users to move to the next device, at least not yet. Like PCs, devices are being replaced, just not driven from industry forces. Also, like smartphones, the market seems to have matured, slowing in growth.
Naturally, Joly believes that Best Buy will be around for years to come. I agree with his reasoning. He acknowledges the squeeze between online resellers and boutique shops, which puts Best Buy in an awkward middle niche when the goal of a big box store is to be not niche. My interpretation of his strategy is to, instead of being crushed, strive to overlap. Embrace what the customers want on either side while doing your thing in the middle.
It is still questionable whether it will work, but it seems like the right move.
Subject: General Tech | November 8, 2011 - 08:37 AM | Tim Verry
Tagged: best buy, workforce, UK, retail
Best Buy is one of the few major big box electronics stores still standing in the United States. Despite the retail chain’s history of annoying tech enthusiasts and pushing services, there system is no doubt profitable in the US. Unfortunately, the “big box” modus operandi is not working out as well on the other side of the Atlantic. The company opened up 11 of its big box stores in the UK on April 2010, and employs 1,100 workers. These 11 stores are only a drop in the bucket compared to the 2,500 small box stores specializing in mobile phones. These 2,500 stores are owned as a 50/50 joint venture between Best Buy and Carphone Warehouse. The smaller stores are proving to be more popular and profitable with UK consumers than the big box, more generalized electronics approach.
Image courtesy Loudrocksurfer via Wikimedia Creative Commons
Due to the profitability disparity, Best Buy has decided to refocus its efforts and will be closing all 11 big box stores in the UK. Fortunately, Best Buy has stated that it is committed to keeping the “vast majority” of the 1,100 affected workers employed in the company by shifting them to positions in the new small box stores. The new stores will specialize in cell phones and other mobile technology including tablets.
Do you think Best Buy is backing away too soon, or is the big box, brick and mortar retail electronics store just not as popular overseas? Let us know in the comments. I feel that it is also worth mentioning that our thoughts and best wishes go out to all those affected by the store closures.