Best Buy recently released their Fiscal 2012 December Revenue Summary. The company states, “Gaming and digital imaging both experienced low double-digit declines in comparable store sales.” Best Buy saw a total revenue of $8.4 billion; however, the company has experienced an over all loss of 1.2% compared to the previous year.
The CEO of Best Buy, Brian J. Dunn, made a few comments that were released with this financial statement:
“We built off of share gains in the third quarter to deliver December sales that we believe compared favorably to the retail CE industry. Based on our performance in December we continue to expect to achieve our annual guidance, despite customer traffic that was lower than expected until the last week before Christmas, which resulted in December revenue that was slightly lower than our expectations.”
Best Buy’s domestic online channel saw a growth of 26% in revenue compared to the previous year. Brian J. Dunn also noted that Best Buy’s sales of “eReaders and smart phones continued to deliver strong growth in December.”
Analysis: There are many reasons why I don’t frequent stores like Best Buy or GameStop anymore. This is a big problem with brick and mortar stores: every time I go in there, a representative will spew spam at me at one point or another. I don’t mind if an employee approaches me and asks if I need help, but if I do ask for it and we find what I am looking for, don’t tell me about about the additional services Best Buy offers. I think offering an extended warranty is appropriate, but trying to shove your Geek Squad install services is another, and in my mind, it’s inappropriate.
I used to like Best Buy, and at one point I used to like Game Stop, too. Unfortunately, they’ve become too carried away with selling their own overpriced, and in my opinion, feature-lacking services. There’s a reason we have spam filters for our e-mail, but I can’t turn one on when I go into those places.
This is just the tip of the iceberg, but if you look back to last year, Best Buy closed their Best Buy UK stores back in November. I have to wonder how much this cost them. Seriously, they put a huge investment in to open these stores in 2010 and closed them only a year or so later. This is one of the reasons why I believe Best Buy’s a sinking ship. This Forbes article I read recently shares this sentiment as well.