Best Buy’s same store sales were down 6.5% as their discounts failed to convince you to buy, says Bloomberg.
Still, there seems to be an overall consensus that things would have been worse for Best Buy if Circuit City hadn’t filed for Chapter 11 bankruptcy.
Circuit City, the second-largest U.S. electronics retailer, sought bankruptcy protection in November after suppliers concerned about declining sales cut off credit and demanded cash up front.
Best Buy probably benefited from shoppers wary of buying from a retailer in bankruptcy, David Schick, an analyst with Stifel Nicolaus & Co., wrote in a research note Jan. 6. Schick, who is based in Baltimore, estimated December same-store sales would decline 6.5 percent, including a 7 percent drop in the U.S. He advises holding on to the shares.
Where you impressed by Best Buy’s holiday bargains? Or not?
Best Buy Sales Drop 6.5% as Discounts Fail to Attract Shoppers [Bloomberg]
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