7 Reasons Best Buy Won't Be Around in 7 Years

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Best BuyThe hunt is on for Best Buy's (BBY) next CEO.

It won't be an easy job to fill. Just because Best Buy outlasted Circuit City and several smaller consumer electronics retailers doesn't mean that it won.

Best Buy has an ambitious plan of closing down some stores, updating others, and ramping up its chain of smaller Best Buy Mobile locations.

Thankfully, Best Buy is still profitable. Its balance sheet is also in decent shape. The last major consumer electronics superstore concept still left standing will definitely be around for the next few holiday shopping seasons.

However, the reason that it will be hard for the company to secure a top helmsman is that the concept -- if not the industry itself -- will become less relevant with every passing year. I recently went over a few ways for Best Buy to save itself, but the prognosis isn't very positive. Let's go over some of the things working against Best Buy's long-term viability.



Longtime Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of Amazon.com, Best Buy, and Apple. Motley Fool newsletter services have recommended buying shares of Apple, Amazon.com, and hhgregg, as well as creating a bull call spread position in Apple.



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394 Comments

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Elizabeth Kammerer

Kenmore does not MAKE appliances, GE, Whirpool, Maytag, etc. DO. It's just a label. Research your facts better please. It's EXACTLY like Best Buy they have Insignia and Dynex which, just like Kenmore, are made by manufactures like LG, Samsung etc.

April 13 2013 at 9:31 PM Report abuse rate up rate down Reply
cloud2988

i sue best buy in 2008 because i was going buy a camcorder, and a security guad claim i stole something a product and i never heard of, he broke my leg had surgery for and it happened on my birthday and i work for the health department, i think best buy needs to close down because thier stuff isn't commercial wise and plus the employees are lazy.

June 03 2012 at 12:48 PM Report abuse rate up rate down Reply
gwynnemn

I quit buying from Best Buy three years ago. I got so weary of telling The Geek Squad rep." to sit back down, we aren't finished yet". ! The GS reps are paid by the number of calls they make, not by their service ratings. The final straw was when they tried three times to repair my laptop, and finally decided to "give"me another computer," but lost my motherboard! It is indeed a schill store!

May 05 2012 at 6:56 AM Report abuse rate up rate down Reply
sunlightSHINES

WALLSTREET IS A SCAM and FLOATS SHILL COMPANIES LIKE BESTBUY, promising employees a lifetime career all-the-while draining American Investor retirement money. When the Banksters suck-off enough funds from good, honest investors...VIOLA, the BigBox stores go under, leaving thousands jobless, hopeless and destitute and do-good investors broke and sorry.
Don't fall into the trap. Don't invest and don't even shop there.
If you want to make a few dollars SHORT SELL BestBuy.
I Promise you it will FOLD just like Circuit City, and then a new Shill company will emerge.
BESTBUY is a BUST. Pass the word and Watch...
Adieu BestBuy & Good Riddance

May 03 2012 at 6:20 AM Report abuse +1 rate up rate down Reply
hkidher1

I think Best Buy has the worst customer service. What kind of store charges you for returns? Won't be surprised if their on the chopping block.

May 02 2012 at 10:10 PM Report abuse rate up rate down Reply
1 reply to hkidher1's comment
AOL WHITE VOICES

When you can even get them to take something back. IF you buy something and it does not work, they force you to have it serviced first. I stopped using them for that reason alone.

May 03 2012 at 5:25 PM Report abuse rate up rate down Reply
danmateus

I disagree with every single thing listed in this article as to why Best Buy is failing. I'll make it very simple. One word...WALMART. Since Walmart started selling real HDTV's like Samsung and Sony and various other forms of name brand electronics,I have noticed that the always busy Best Buy in my area became a ghost town overnight. Another advantage of Walmart also is that their buying power gets you lower prices also they don't having annoying sales kids pestering you to buy worthless service plans. They'll ask you once at the register if you are interested and you say no and the issue is dropped. That is good customer service. Don't pester the customers! I bought a DVD player at BB about 10 years ago and this kid was trying really hard to sell me a plan and I finally said "Look if I thought I needed a plan for this player I wouldn't buy it then. I'm buying a Sony because I trust it'll always work for me." Kid looked at me and smiled and agreed.

May 02 2012 at 1:09 PM Report abuse -1 rate up rate down Reply
1 reply to danmateus's comment
AOL WHITE VOICES

Have you ever bought something at Best Buy, found it to be defective and had them give you a refund? Good luck on that. You go in, pay $150 for a personal DVD player and by the time they are done servicing that "NEW" DVD player, a month or two has passed. So they are holding your $150 and you have nothing. It goes out again, same thing. By then you are cursing mad. So what. They still have your money and you nothing. That does not happen at Walmart. What I am trying to point out is, that a little customer service and good policies, tend to get return business. I'm not touting Walmart but staying away from Best Buy after my bad experiences. Mine was a $2000 computer not a DVD player so that really makes one angry.

May 03 2012 at 5:13 PM Report abuse rate up rate down Reply
catbell7

I will not even go into a Best Buy. The human beings are rude and only interested in waiting on younger customers, most of the time they have their frigging cell phone in their hand or ear and I just refuse to spend my $$ any where where the staff have a phone up their ass. As I tell my friends: you VOTE with your $$ if you do not like the service tell the manager and walk out -- taking your bucks with you. Eventually the message will be understood. Same with purchasing any item that has their 'service' department in India -- yes they say "Robert/Roberta/Rebecca/Linda" but I will not purchase from any company if I have to deal with someone outside North America.

May 02 2012 at 12:17 AM Report abuse rate up rate down Reply
1 reply to catbell7's comment
AOL WHITE VOICES

How are the aliens...at best buy? ;) I agree with you on the customer service at Best Buy. It's horrible. I stood there, loudly told the idiot to go ahead and finish his phone call....(it was a personal call too) and when he finished and found it convenient, he could ring me up. Manager heard me and came over. Took care of that. I do the same thing at any store when an employee feels they can talk on the phone while ringing my order. Love the reaction,

May 03 2012 at 5:24 PM Report abuse rate up rate down Reply
Brian

I had a bad service experience with Best Buy and have not shopped there since. This was about 2003, I took a computer in to have it repaired. They basically reloaded the hard drive with one little exception, they could not get the mouse to work. Not only were they ok with returning the computer to me in this state, but they charged me $107 for the work. So, for the money I paid, I got my computer back and it would boot up to windows, but I had no mouse, only the keyboard. So, needless to say I had to buy a new computer. And I didn't buy it at Best Buy.

May 01 2012 at 6:48 PM Report abuse rate up rate down Reply
dantraversecity

Best Buy hardly sells any media anymore. Their stores used to be the place to go for CDs, DVDs and games but they gave up on trying to be competitive in these markets...I think this reduced their foot traffic substantially.
btw, I've generally had positive experiences at Best Buy.

May 01 2012 at 3:41 PM Report abuse rate up rate down Reply
lmadsyntst

best buy is very bad , circuit city i never went there , but Federated was great !

May 01 2012 at 12:19 AM Report abuse rate up rate down Reply
2 replies to lmadsyntst's comment
Valerie Ferguson

Yeah!! Federated, that was the place to go. I could find anything I wanted and/or needed.

May 02 2012 at 4:40 PM Report abuse -1 rate up rate down Reply
cloud2988

circuit city is 10 time better then best buy

June 03 2012 at 12:49 PM Report abuse rate up rate down Reply