Posted by Shirley Brady on March 29, 2012 03:28 PM
As Best Buy's March Madness commercial states, "It's time for comebacks and miracles."
The big box retailer used to be able to count on such major sports events — along with the Super Bowl, NFL Kick-Off, MLB Opening Day — to drive sales of new TV sets and big-screen home theaters. But with HDTV penetration at about 63% in the U.S., and an estimated one in four American homes a Blu-ray disc player, the big box consumer electronics retailer is backing away from its big box model.
Today, the company (which recently closed its UK operations) announced as part of its dismal quarterly earnings report that it is closing 50 of its 1,100 U.S. stores this year, while testing smaller tech support-centric "connected stores" in San Antonio and Minneapolis.
As part of its restructuring, it will also lay off 400 corporate and support workers in order to slash $800 million in costs and turn around its struggling business model. In addition to shifting away from being a big box retailer, it's also looking to China for growth.Continue reading...
Posted by Sheila Shayon on January 10, 2011 05:30 PM
"Smart technology — really?" Jane Lynch, LG spokeswoman, quipped in a video that the brand brought to last week's Consumer Electronics Show tech confab in Las Vegas. "Just exactly what do you mean by smart technology? Smart like Einstein? Smart like LG products can read my mind? Are you telling me my refrigerator will know things, like what I'm craving right now?"
Yes, Sue — brands and tech just got a whole lot smarter and connected, as was amply in evidence on the show floor at CES 2011.Continue reading...
getting by with a little help
Posted by Abe Sauer on January 5, 2011 12:30 PM
In the battle for market supremacy, one approach is for a brand to become the industry standard. Once a standard is established, market development often takes the path of least resistance, i.e., it develops along with the existing standard. A standard in motion stays in motion.
History has numerous examples of how this works both ways, from how the North's victory in the Civil War led to a unified national rail system to the disastrous attempt of the US to adopt the metric system.
With that in mind, consider the timed-to-CES news that leading electronics manufacturers have agreed to place Netflix-branded one-click buttons on their remotes.Continue reading...
Posted by Stephanie Startz on December 14, 2009 08:20 AM
Accenture ends sponsorship of Tiger Woods. [NY Times]
Citigroup in tentative deal with government officials to repay bailout funds. [NY Times]
Asda to share sourcing with parent-company Walmart, cutting costs and slashing prices. [Times of London]
The Google phone, "Nexus One", leaks to the web as phone enters beta-testing. [WSJ]
Forecasting dismal performance in 2010, Nokia cuts jobs at Finnish plant. [NY Times]
Beijing Automotive will buy parts of Saab. [WSJ]Continue reading...
Posted by Abe Sauer on November 24, 2009 02:36 PM
Poor Best Buy. The way things have been going, the brand will soon be forced to rebrand to "Just Kinda' Good Buy."
As Black Friday approaches, Best Buy is being forced into a price war with retailers like Amazon and Wal-Mart after suffering through a 77% seasonal earnings drop in 2008. It already started with pre-Black Friday "early doorbuster" deals on hot items like HDTVs. And it's losing:
"In a price comparison of 50 overlapping non-TV products, which included Blu-ray Disc players, Pali Capital analyst Stacey Widlitz found that Wal-Mart and Amazon lowered retail prices 3% and 1.3%, respectively, while Best Buy increased prices 2.1% since a similar price comparison Nov. 2."Continue reading...
Posted by Stephanie Startz on November 3, 2009 04:28 PM
The DVD death march continues.
Best Buy today announced plans to offer digital entertainment online, available to consumers to rent or purchase in partnership with Sonic Solutions.
The ambitious retailer will offer on-demand movies and entertainment, powered by Sonic's Roxio CinemaNow service, through various consumer electronic devices -- citing set-top boxes, portable media players, Blu-ray Disc players, mobile phones and PCs -- produced from a variety of manufacturers.
Best Buy is joining a cadre offering content on-demand online, hitching their wagon to the success of Netflix, Blockbuster, Hulu, Amazon and Apple.Continue reading...