4 Lies That Best Buy Is Feeding Youhttp://www.fool.com/investing/general/2012/01/12/4-lies-that-best-buy-is-feeding-you.aspx Rick Aristotle Munarriz
January 12, 2012
I've never met Best Buy (NYSE: BBY ) CEO Brian Dunn, but I get the feeling I would like him.
Unfortunately, he's in a bad situation, and publicly going to the mattress to defend his company is only making Best Buy look worse.
It's a shame, because Dunn is likable. Unfortunately, he's just not really believable.
Speaking at the annual CES in Las Vegas yesterday afternoon, Dunn was interviewed by Consumer Electronics Association CEO Gary Shapiro. I wasn't there, but Forbes' Eric Savtiz was and he provided some of the head-scratching comments made by Dunn.
Since I can't cover them all, let's go over four of the more unbelievable claims.
1. "I wouldn't put returns and exchanges in the problem bucket."
The reason that Amazon is eating Best Buy's lunch -- and it is, while eyeing dinner and breakfast, too -- is that a seemingly cold and detached company can handle returns and exchanges more effectively than Best Buy. Even in the brick-and-mortar world, several department stores have kinder policies.
If Dunn isn't placing this in the problem bucket it's only because there are so many problems in the bucket that this one just doesn't fit.
2. This is the best time in history to go buy a television.
Sure, prices are going to be low as retailers get desperate about clearing out inventory. I'll admit it. I saw a Cyber Monday deal on Amazon.com for a 32-inch LCD for less than $200 and I pounced on it for my youngest son's room. However, anyone who would fork over good money for a TV now -- and much less a 3-D TV -- is as dumb as anyone buying an iPad 2 this month when the inevitable price cut is coming in a matter of weeks.
Sure, Dunn was being interviewed by the CEA. This is what he had to say. Come on, though. Protect your customers from a regrettable mistake.
3. Once the state sales tax issue for online retailers results in a level playing field, "it gets interesting."
There are certain cost advantages that online has over physical retail. There are also a lot of people out there who s