By Paul Page Paul Page The Wall Street Journal BiographyPaul Page @PaulPage [email protected] May 24, 2018 4:23 p.m. ET 0 COMMENTS Best Buy Inc. BBY -6.65% says the rapid expansion of inventory ahead of even its fast-surging sales is the result of the retailer’s efforts to draw customers by having goods in place both online and in its physical stores. The electronics giant reported overall sales rose 6.8% to $9.12 billion, part of a strong report issued Thursday that showed Best Buy growing at a sharp rate on improving consumer confidence and a lineup of popular new products. The company also reported that inventories on its balance sheet in the quarter ended May 5 reached $4.96 billion, up 7.1% from the end of last year’s fiscal first quarter, and that inventories on a per-square-foot basis—an important measure of supply-chain efficiency for retailers—were up 9% from a year ago. Read More on Logistics Union Pacific Chief Praises GE-Wabtec … [Read more...] about Best Buy Keeps Store Shelves, Distribution Centers Stocked
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(AP) NEW YORK - Electronics retailer Best Buy Co. (BBY) is laying off 600 staffers in its Geek Squad technical support division and 1,800 other store workers as it seeks to restructure operations and improve results, the company said Friday. The cuts amount to about 1.4 percent of the company's total staff of 167,000. Best Buy is trying to combat the "showrooming" of its stores, as consumers test out products at its stores but go home and buy them cheaper online or at discounters. Interim CEO Mike Mikan has vowed the company is committed to fundamentally changing operations to improve results. Spokesman Bruce Hight says the layoffs are part of Best Buy's "ongoing turnaround plan." Best Buy raises dividendAnalyst: Buyout not likely for Best BuyReport: Best Buy founder may seek to take company private In March, the company announced a restructuring aimed at improving results. At the time, the company said it would close 50 of its U.S. big box stores, cut 400 corporate jobs and trim $800 … [Read more...] about Best Buy to cut 2,400 jobs in turnaround effort
(AP) RICHFIELD, Minn. - Best Buy (BBY) announced over the weekend the locations of 50 stores that it is closing this year, including seven in California, six in Illinois and six in the company's home state of Minnesota. Complete list of Best Buy stores expected to close permanently The struggling electronics chain said last month that it would close some of its so-called big box stores, cut 400 corporate jobs and trim $800 million in costs. Best Buy plans to open 100 smaller, more profitable Best Buy Mobile stores. The company is trying to avoid the fate of Circuit City, which went out of business in 2009. It faces slower sales of expensive items like TVs, plus increased competition from Amazon.com and discount stores like Target. Best Buy store closing list: Is yours on it? Best Buy CEO's exit linked to "personal conduct" Best Buy creates committee to search for new CEO Best Buy has about 1,400 locations in the United States. It has already closed two stores this year, one … [Read more...] about Best Buy’s store closing list: Is yours on it?
Best Buy (NYSE: BBY) is closing down its 257 Best Buy Mobile stores by the end of May, ending the consumer electronics superstore's foray into small retail locations, which began over a decade ago. Best Buy has found that the industry has matured, and with the broad proliferation of competition, it's simply become too expensive to operate these niche outlets.Because the electronics retailer's big-box stores already include store-in-store boutiques dedicated to carriers and manufacturers like Apple, AT&T (NYSE: T), Samsung, Sprint, and Verizon -- and because Best Buy is adding more of these this year -- there's little reason to continue competing against itself with the stand-alone stores.So Best Buy isn't exiting the mobile phone business, just consolidating it, and that should worry GameStop (NYSE: GME), which is hoping to turn around its own mobile phone business to help offset its declining gaming market.Image source: Getty Images.Can't game the systemAlthough GameStop is best … [Read more...] about Is Best Buy’s Loss GameStop’s Gain, or Just More Pain?
Best Buy Co.’s same-store sales grew 9 percent during the fourth quarter, the company said this morning, a stunning jump that showed it is benefiting from improving consumer confidence and fewer competitors. The nation’s largest consumer electronics retailer attributed the sales growth to strong demand for video games and better product availability during the crucial holiday period. Profit fell 40 percent in the quarter, however, as the Richfield-based company paid performance bonuses to more than 85,000 employees and it faced costs due to the new U.S. tax law. Net income was $364 million, or $1.23 a share, in the three months ended Feb. 3, down from $607 million, or $1.91 a share, a year earlier. Revenue in the quarter was $15.4 billion, up 14 percent from $13.5 billion a year ago. Best Buy said it expects same-store sales to grow 1.5 to 2.5 percent in the first quarter of its new fiscal year, a pace that is strong but far more normal for an established retailer. The … [Read more...] about Best Buy wins the holidays with a massive jump in sales