Is there any hope left for Best Buy?
Best Buy (BBY) reported quarterly earnings that were worse even than critics had expected. The world's largest electronics chain earned four cents a share compared to estimates of twelve cents. More concerning still, Best Buy said free cash flow would be as much as 30% lower than expectations.
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The numbers call into question yet again whether or not Best Buy has a place in a world of e-commerce stores and low-price televisions. The answer depends on whether or not the chain can learn how to embrace what they are and stop complaining about what they aren't.
The Showrooming Solution
Specifically, Best Buy needs to stop complaining about things like Showrooming. Defined as customers coming into stores to "kick the tires" on products prior to buying online, showrooming has been fingered as one of the key reasons Best Buy won't make it. The reality is just the opposite.
Every circular advertisement you'll see from now until Christmas is designed to drive traffic into a store. With high gas prices, parking hassles and crowding, just getting people off the couch and into the store is tantamount to a major victory. To complain about customers looking for the best price is ludicrous.
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