After vanquishing its biggest competitors, redefining the consumer electronics segment and expanding internationally, Best Buy seemed unstoppable. But after five consecutive quarters in which same-store results decline, it has just announced its first such gain – by an underwhelming 0.3%.
And all those lines outside the doors on Black Friday? All those customers were taking advantage of deals on merchandise that had been promoted at high cost for sale at paper-thin margins. It was a play for market share – not the profit investors expected.
Here, from Inside Business, is a more detailed analysis of Best Buy’s problems and its bet for the future: mobile.