More Lessons From Best Buy

摘要

Best Buy's dominance has always given independent retailers plenty of agita. But it has also provided them with many ideas on how and how not to run their businesses. The company's recent Q4 report is no exception. A quick look at Best Buy's Q4 statement shows that Best Buy Mobile was one the few bright spots for the company during a rough Q4, with strong revenue driven primarily by connection transactions for phones and tablets. CEO Brian Dunn said the company will continue to focus on that market throughout the year. Who can blame him? Sluggish sales and razor-thin margins from TVs and other traditional electronics dragged down the company's quarterly profit 16%. Domestically, Best Buy sales suffered "a low double-digit decline in entertainment hardware and software, as well as TVs, as current consumer demand in new television technologies had not yet emerged as a significant revenue driver," according to the quarterly report.