Is Best Buy Doomed?http://www.fool.com/investing/general/2012/04/12/is-best-buy-doomed.aspx Robert Eberhard
April 12, 2012
Its CEO left, and you would think that most of Best Buy's (NYSE: BBY ) stores had burned to the ground -- at least based on all funeral marches that were cued yesterday morning.
I am currently bearish on Best Buy's performance, and a lot needs to change for it to survive, but the departure of CEO Brian Dunn is not the final straw. Liquidation sales are not right around the corner. Everybody just needs to take a deep breath and wait to see who the new CEO might be. Then we can happily jump back on the anti-Best Buy wagon and merrily ride down the trail to obsolescence.
Why all the hostility?
The workforce at Best Buy hasn't helped. Instead of the helpful Geniuses found at an Apple store, you are left with mostly apathetic employees who know the bare minimum about the products they sell. There was a time when Best Buy's employees were knowledgeable of products, and top performers were rewarded with pay often not found in retail. However, in the name of cost-saving, this system has been replaced by one that pays a lower hourly rate and offers incentives for selling add-ons like the notorious buyback protection plan at checkout.
Change from outside would be better