It’s no secret that Best Buy has been under extreme financial duress for the better part of this year. We have discussed the many problems that they have been having in numerous classes here at DePaul. They have also been grabbing headlines for months with negative news about their declining sales. One of the main problems that the company has experienced is the fact that it cannot keep overhead costs low enough to compete with the online retailers. Circuit City had the same overhead problems a couple years ago and ended up filing for a messy bankruptcy. In this new era of prosperous technology companies such as Apple and Facebook retailers like Best Buy are struggling more than ever.
Best buy has been nicknamed by some Amazon’s showroom. Because of it’s costs to pay rent and maitenance on buildings and hire sales and operations staff they can not lower prices enough to compete with retailers without those costs. In an article that I just read about how best buy is attempting to keep it’s doors open the article noted that Geek Squad may be what the company bets on for increasing revenue. Target is already using the Geek Squad and has plans in place where Target customers get service included on tablets and computers that they buy. Now Best Buy has partnered with E-bay to offer similar service packages with electronic devices. Ebay will also offer flat rate packages for already existing items that EBay customers need servicing. With Best buy closing more than 50 big box stores this year do you think that the Geek Squad partnerships as well as an expansion of the Geek Squad can save the company? Also, are the online retailers killing brick and mortar technology stores? What does the next ten years look like for brick and mortar retailers of tech products?