Follow us on Twitter
Why Best Buy is Going out of Business…Gradually
Electronics retailer Best Buy is headed for the exits. I can’t say when exactly, but my guess is that it’s only a matter of time, maybe a few more years.
Consider a few key metrics. Despite the disappearance of competitors including Circuit City, the company is losing market share. Its last earnings announcement disappointed investors. In 2011, the company’s stock has lost 40% of its value. Forward P/E is a mere 6.23 (industry average is 10.20). Its market cap down to less than $9 billion. Its average analyst rating, according to The Street.com, is a B-.
Visit Link
1 Comment
james is discussing.
james 2:52 pm on January 5, 2012 Permalink |
I can count the number of times I’ve stepped foot in a BB within the last 10 years on one hand, so I don’t know if this is still true, but back in the day I remember thinking that BB made money by selling old stuff at original retail price. They’d sell a year-old computer hard drive that originally retailed for $130 for $130. The same thing was available online from dozens of sites for $50. They’d always seem to have one product that was the latest-and-greatest, and then a dozen year-old models that were priced only slightly less. So I don’t think it’s that online stores are undercutting them by having less overhead, it’s that they’ve chosen to overprice 90% of their stuff.