Best Buy's Best Hope?

The following video is from Friday's Motley Fool Money roundtable discussion, in which host Chris Hill, along with analysts Jason Moser, Ron Gross, and Charly Travers discuss the week's biggest investing news.

Best Buy (NYSE: BBY  ) reported lower-than-expected quarterly earnings, but shares were up on the news. What does Best Buy need to do to better compete with Amazon (NASDAQ: AMZN  ) ? How can Best Buy better differentiate its business? In this installment of Motley Fool Money, our analysts discuss the future of the retailer.

The brick-and-mortar versus e-commerce battle wages on, with Best Buy caught in the middle. After what might have been its most tumultuous year in history, there are now even more unanswered questions about the future of the big-box electronics retailer. How will new leadership perform? Will old leadership take the company private? Will a smaller store format work out for both the company and its brave investors? Should you be one such brave investor? To help answer all these questions, The Motley Fool has released a new premium research report detailing the opportunities -- and the risks -- in store for Best Buy. Simply click here now to claim your comprehensive report today.

The relevant video segment can be found between 6:36 and 10:33.

For the full video of today's Motley Fool Money, click here.


Read/Post Comments (8) | Recommend This Article (1)

Comments from our Foolish Readers

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  • Report this Comment On March 01, 2013, at 7:36 PM, socalfred wrote:

    There was a time that I enjoyed shopping at best buy, those were the days that the sales peopler

    paid attention to once needs, today shopping at best buy is only for one reason, let me see the product, let me feel the product, and let me by the product somewhere else, Best Buy is a Joke to say the least.

  • Report this Comment On March 01, 2013, at 11:40 PM, Itsawhiz wrote:

    I once new a man, he would drive miles and miles to find the cheapest gas prices. He was bragging that he found a station that was selling gas twenty cents cheaper then anywhere else. When I asked him where? he said its only 30 miles north of here. I asked him if he would drive the 30 miles every time he needed gas. he responded, "of course". I asked him how much he saved by driving 30 miles to that station. He said it took 20 gallons to fill his tank so he saved $4. I asked him how many MPG he gets in his car. He told me about 20. So I said you would use 3 gallons of gas to get to and back from the station at $3 a gallon that's $9 additional cost, not to mention the time you wasted if you went to the gas station right at the corner. He said but I saved $4.

    Moral of the story, Stupid people waste more time and more money trying to find the best deal without realizing that it cost them more. What value do you put on your time? And if you needed the product right away are you going to wait a week? That's why we need the Best Buys. Because you have people that have better things to do with there time then spending it looking for the best price.

  • Report this Comment On March 02, 2013, at 2:44 PM, mistacy wrote:

    "better things to do with there time then spending it looking for the best price" What about spending time on a better education...

    e.g. there-> their & then->than

  • Report this Comment On March 02, 2013, at 2:51 PM, mistacy wrote:

    Best Buy is more aware than some realizing people do want the best deals, ergo "Price Matching policy".

    Best Buy also realizes that e-shopping is where it's at, one of Jolly's main point in his revival plan is to expand its website to reach out to e-shoppers. Some e-retailers are way ahead in that game & do not have the cost of brick & mortar stores. As much as Best Buy might be satisfying to some, I don't see a bright Future for their stores.

  • Report this Comment On March 04, 2013, at 12:25 AM, oEMPYREo wrote:

    I used to work for best buy, and aside from e-retailers, Wal-Mart was one of our biggest competitors as well. They were constantly selling movies, blu-rays, and laptops for far cheaper than what anyone could afford to sell them for. The only leg up we had on them was more variety and employees who (kind of) tend to your needs. Other than that, Wal-Mart had us beat and the only thing that kept them from destroying us was their lack of good employees.

    Not to mention there are not very many products with high margins. The highest margins were accessories and the warranties. When you're competing on low margins and high sales, then you're competing with Wal-Mart and we all know how that will end up.

    Keep in mind I'm only referring to a different competitor that a lot of people forget about. E-retailers are obviously a huge problem for Best Buy as well.

  • Report this Comment On March 04, 2013, at 1:26 AM, frankstein wrote:

    @mistacy:

    "Best Buy is more aware than some realizing people do want the best deals, ergo "Price Matching policy"." Huh?

    Before you criticize someone else's grammar/spelling/education, make sure yours is spot on. Better yet, don't even comment on it. You know what they were trying to say. And Best Buy's CEO is Hubert Joly. Not Jolly. I mean, I'm sure he is, but that's not how you spell his last name.

  • Report this Comment On March 04, 2013, at 3:25 AM, frankstein wrote:

    @oEMPYREo:

    I used to work for Best Buy as well and I don't ever remember Walmart selling laptops for less than Best Buy. That's not to say they didn't, but you would know that laptops were pretty much sold at cost. All the money is made on the accessories and protection plans. And DVD's and Blu-rays have the same problem. No one makes any money selling them. However, I think you're right when you say that a lot of people forget about Walmart's role in the battle for CE customers. No one goes to Walmart for customer service. They go for price. And if you did work for Best Buy, then you got your share of customers who bought something at Walmart and then headed over to your store to ask you how to work it. The problem was, if you suggested a Geek Squad service you were a crook and if you couldn't help because Best Buy didn't sell an off-off brand TV/computer/you name it, then you were lazy/stupid/worthless. It seems that price will get a customer to come back, but you have to pay for good customer service somehow. Most comments I've read (yours is not included in this) come from people you want Best Buy to sell everything for less and provide top notch customer service. Guess what people? That customer service isn't free. If you want excellent customer service, you're going to have to pay a little more for that CE item. And if price is what you're after, don't complain when you don't get the right answer.

  • Report this Comment On March 04, 2013, at 3:33 AM, frankstein wrote:

    *who want Best Buy to sell...

    Sheez

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