Best Buy's Holiday Discounts Failed To Impress
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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Same Store Sales
Walmart +1.9%
Sams Club -3.2%
Macys -4.7%
Sears -7.3%
Total BBY revenue only fell by 1% in December so I wouldn't say this news is horrid. [www.marketwatch.com]
@redskull: Thanks! I thought so but when 20 people are telling you the complete opposite you start to question yourself.
@TinkishDelight:
I didn't realize being a Consumerist reader had to be synonymous with not shopping at Best Buy.
Speaking just for our area, the competition increased for the 3 area BBY stores. In the past year I think we've gotten a couple new Walmart Supercenters and at least 3 new HHGregg electronics stores, which is sort of like Best Buy with more knowledgeable service people.
And among the fatwallet/slickdeals/etc people, BBY has a pretty tarnished rep. It's going to take a lot for them to recover from stuff like the "fake website scam" and the whole "angel/devil customers" attitude.
Bought a hard drive at Best Buy. Of course the in store price was $15 more than the web price. Had to go to customer service to get the correct price. Same thing happened when I bought a laptop from them earlier this year- online price was $100 less than their in store price. More shenanigans from Best Buy. If I want something now, I usually got to Best Buy and haggle over the price. If I can wait, its Amazon or Newegg.
Ha, in this day, a 6.5% drop is considered a positive thing, it might even encourage investors ;-)
Anyway, I'd have thought that the number of people preferring BB due to CC's uncertainties would be completely offset by the number of people going to CC to seek out store-closing "bargains" (unless these shoppers are savvy or the stores in question were already closed).
@Ash78: I used to work for HHGregg...
Good store, if you know how to haggle right, you can do well there.
@Patricia McDermott Comeau: That's impressive. I couldn't even get Walmart to PM Walmart.com on some movies. So I just bought them anyway, then bought them off Walmart.com for site-to store. On my next visit to Walmart picked them up at the back of the store and returned them up front with my more expensive receipt.
I was really disappointed in the after-Christmas sales across the board. I was hunting for Wii games, and I know that's a hot market right now, but nothing I wanted was discounted more than a couple bucks. I probably could have been tempted by a great deal on a digital camera or something in that range, but nothing I saw was anything special.
I guess they figured that they might as well not take a bath on the few things that were actually going to sell, since traffic was down anyway.
Is it just me, or in Canada, does Best Buy seem to have a better rep than Future Shop? I shop at Best Buy all the time and have never ever had an issue with bad service, or sketchy stuff going on. Judging by the line for boxing day (where I was 500th in line!!), people seem to think they had good enough deals.
Hell, the shelf where the $99 dollar Rogers HD boxes were-that was literally bent and mangled.. the deals must have been awesome!!!
Why would I want to buy anything from Best Buy when there are stores with better service, like Costco or Amazon?
I'll give you a great example of a recent transaction I did. I recently bought off Amazon a box set of Fred Astaire and Ginger Rogers DVD. The set was actually a combination of two other sets that the company had put out earlier (this was the "Ultimate" collection or some sort).
Fast forward four weeks after the holidays, and I decided I wanted to watch Top Hat. I opened the case- but no DVD. I opened a few other cases- turns out that all of the discs that belonged to one of the two collections were missing (probably a packaging problem when they put the set together).
I call Amazon- or rather, have Amazon call me. I'm given two options- I can send the whole thing back for a refund, or they will send me the set of the discs I'm missing for free. I take the latter option, and I'm all set. Perfect service.
If I had went into Best Buy, I would have been accused of stealing the discs I was missing. Or, because I didn't notice it for 28 days, I would have been sent packing. With Amazon, I was trusted and treated like a valued customer. So why would I shop anywhere else?
@mmcnary: I got the Mitsubishi 60" dlp also. Was on sale for $999, plus I was able to use a 10% reward coupon and $40 in reward redemptions. Can't beat that price.
Overall though, the prices sucked in general this season.
I wouldn't want to shop at best buy (at least with a credit card) since they tend to automatically charge you for magazine subscriptions you do not want even if you refuse, to boost the margins of the store. Then these subscriptions are very difficult to cancel and causes you a bigger hassle and to waste more time when you could be spending that time playing with the gadget you just bought at their store! That is reason alone not to shop with them, at least with a credit card, which means I will not be buying any high ticket or large purchase items there.
I would rather shop with Amazon or Newegg and wait for my stuff and know that I will not find any weird credit card charges on the bill, and to get lower prices as well. They are making their store a place that I don't even consider shopping at.
I comparison shopped one larger ticket item recently (just after the holidays) and Best Buy was one of the places we went and got prices from (website and in-store, as we know from the Consumerist that those two prices can be different). I don't really want to buy the item from Best Buy (I hate that inevitable passive-aggressive tussle from the salesperson trying to sell me the extended warranty and overpriced accessories) and it turns out it won't be hard to avoid it. I'm having trouble finding a price from another retailer on the two or three models we're considering that's *higher*. There was only one of the other four retailers we would consider purchasing from that was more expensive than Best Buy's price.
So yeah, I guess their discounts are a little disappointing on that basis, as I would only brave the add-on hyping Best Buy salespeople if they had the best pricing.
While the deals on what I wanted weren't there (I was specifically looking for a certain model Samsung TV as I had a Best Buy gift card for most of the purchase price). They had it on and off on sale for a crappy sale. This week, however, the store had it on sale for $1199 (regularly $1499 or $1599) and it was on sale online for $1249 (Samsung ln46a550 46" LCD 1080p). As soon as I found out, I headed to the store to buy my TV.
Other items, however, have been decently priced, I just haven't been in the market for them.
I'm not buying it, so to speak. Their parking lots here have been packed non-stop since early November and continuing. For the couple years before that I've never seen them so crowded. I guess these troubled shoppers are just wandering into the stores to look at all the fancy stuff they won't buy before going home, right?
Are they accounting for lower prices on TVs, computers, and some other electronics? Because that'll get ya. Sorry we won't pay as much, but we're still buying, guys.
@htrodblder: There's never been any particular problem with the service at my local one, and a few other people have said the same. It'd be more sheeplike for me to stop going than to continue in such a case.
@Islandkiwi: Me neither...can anyone else clue me (and the rest of us) in on where all these "unbelieveably humungous never before seen" discounts are because I haven't seen any of it.
@Kenmist: That seems like a pretty standard open box sale, not like they priced it down for new years.
@Islandkiwi:I'm in the suburban Chicago area, which is sick with concentrated retail centers (i.e. a BB/Wal-Mart/TRU/Kohls/Target intersection every 4-5 miles), and I was frankly surprised at the lack of any really attractive sales at the national chains, both pre- and post Christmas.
You'd think they'd be trying harder, but the obvious Catch-22 in all of this is if they cut too deep they're as un-profitable as they are if they don't discount at all. Kind of a lose-lose.
@Jenkinsbball: Exactly, I'm currently looking to buy a new receiver. BB has it "on sale" for $300 more than Amazon.
It wasn't just lack of genuine bargains that kept me away from Best Buy.
It was also the continuing sleazy sales tactics we keep hearing about, like extended warranties and the TV "calibration".
Just checking out of the place requires me to say "no" more times than I have at any point in my life since I was a two-year-old.
Then our local BB re-organized their merch for the umpteenth time -- and forgot to put up genre signs in the DVD/BR department. So you can't find anything! Brilliant!
@Norcross:
I got the same camera for my mother inlaw. $160 shipped from Amazon, plus a free 16G Class 6 SD card.
@htrodblder: @htrodblder: I'm with flora on this one. Maybe it's because I live in geek central (aka right across from Microsoft) but the worst thing I can say about the service at our Best Buy is that sometimes it's hard to find an employee who works in whatever specific section you are shopping unless that section is computers. If you grab any employee though they're quick to help you find whoever it is that you need.
@Dead Wrestlers Society: I got the entire box set of The Wire, which was half price at BB. It was the same price on Amazon too, but there's nothing like instant gratification.
with such horrible economic situation is 6% really THAT bad for bestbuy?
you know if the CEO's and all other CxO's of these companies were getting less bonuses and more real life paychecks then their companies wouldnt be in such distraught.
i bet that -6 came after they paid the CxO's xmas bonuses....right before that they were probably split even!
Let's see... ridiculously long lines, crowded store, no employees to help with anything, crappy prices... and they thought they were going to do well?
I bought one video game from them for xmas, and cringed at the fact that I didn't just order it off amazon sooner, since best buy sold it for $10 more than amazon. :/























I ended up buying a King of the Hill boxed set, which was pretty cheap, but no big ticket items. I personally thought most of the after Christmas sales at the mall were pretty weak. After their "50-60% off" prices, stuff was still about what it normally cost after their typical weekly sales.