Best Buy has raised concerns on whether or not the consumer electronic retailer is capable of turning itself around, due to disappointing sales during the holiday season. Shares dropped by nearly 29 percent to $26.83 on Thursday after the new broke of the disappointing performance of the company. On Friday, shares closed at dived 8.95 percent deeper to close at $24.43 on the NYSE.

The recent performance of Best Buy has raised concerns among investors, who are wondering whether the retailer will be able to turn itself around, and more importantly, whether it will still be active in the coming years.

The holiday season runs from November to the end of December, and during this time, retailers are expected to achieve significant growth, which can account for up to 40 percent of their annual revenue. It's a critical time, one that Best Buy failed to capitalize on. However, it could also mean that last year Best Buy witnessed weak consumer spending or was the victim of heavy promotions from competing retail chains across the country.

Best Buy went into the holiday season aiming to match the prices of all retailers in the country, including online rivals. However, plans didn't quite work out as expected and it could be a sign that brick-and-mortar stores such as Best Buy are falling prey to "showrooming," where consumers check out an item in the store, and then choose to purchase it online for less.

"When we entered the holiday season we said that price competitiveness was table stakes," said Best Buy CEO Hubert Joly. "This was true, and the promotional intensity carries all the way through the holiday. We had a choice of course to make the incremental investment necessary to be price competitive and defend our market share."

It is clear that things are not going on well at Best Buy, for despite the introduction of game consoles Xbox One and PlayStation 4, Best Buy's entertainment business fell by 6.6 percent. Sales of its consumer electronics also fell by 6 percent.

However, Emeritus Richard Schulze, Best Buy founder and chairman is not worried. "Best Buy is on this journey and in this business to win, acquire, and retain new and existing customers. I have complete faith in the long-term strategy and I am confident that management is taking the steps required to win and position the company for a successful future," Schulze said.

Encouraging words from Schulze, indeed, but if digital shopping is taking over, Best Buy will keep on feeling the pinch, though it not be the only retailer to feel it.

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