Best Buy is a leading American tech retailer, catering to consumers & end-users seeking a wide-ranging electronic & digital devices. See more on BBY stock here.
Interesting story on BB.
For those of you with select memories, remember BB's major competitor, and an industry leader for a long time...Circuit City
A classic story of a big box store getting greedy, cutting staff/customer service and ultimately folding in 2009.
People who wanted to buy a high-end electronic with discretionary income expected some level of quasi-professional customer service. CC offered that in spades.
Instead of adhering to their successful business model, CC self-gutted themselves by hiring (ahem) younger, less costly staff (i.e. part time, didn't give a crap attitude ) and reducing the sales commission structure. Being too successful as a salesperson meant you might get your hours cut, commissions cut or simply let go because you were too expensive
...see the quote below from the article I've referenced.
"In 2003, Circuit City finally decided to eliminate its commissioned sales force. In one day, the company fired 3,900 of its highest-paid salespeople, with plans to replace them with 2,100 hourly associates. The move crushed employee morale and productivity. “Anyone who was working in the store thought, gee, if I’m too successful they’re going to fire me, because I’ll be making too much money,” Wulf says. “So there was no incentive anymore to take good care of the customer.”
And it showed. People flocked to BB where, at the time, you could have a staff person actually wait on you and talk about what you needed/wanted. Again, it was a big ticket purchase back then and people wanted some sort of personal touch before handing over big buxx.
Yes, there were other mismanagement issues such as stock buy backs, eliminating appliances, etc but the major issue was the rapid decline of customer service through professional staff reductions.
RIP CC. Take heed BB.