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Best Buy's Holiday Discounts Failed To Impress

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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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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.

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Kind of OT but I seemed to have missed the memo- Is Circuit City closing all of its stores or just some? My family and I were arguing about this over the holidays.


Also, since I am a Consumerist reader, I had no part in Best Buy this holiday season as I also don't every other time of the year.

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In a market as down as we are now, shouldn't sales being down only 6.5% be trumpeted as some sort of muted victory? Isn't the value of the number as a performance indicator only good in comparison to their competitors' numbers?

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@TinkishDelight: For now, just some. Most people think that'll change later this year.

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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]

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I bought a Sony KDL-40xbr6 New Years eve that was on sale for $1700 for $1190, basically 30% off sales price because it was a open box.

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@redskull: Thanks! I thought so but when 20 people are telling you the complete opposite you start to question yourself.

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@TinkishDelight:
I didn't realize being a Consumerist reader had to be synonymous with not shopping at Best Buy.

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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.

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I bought a few bigger ticket tech items before Christmas, an iPod and Digital Camera for example. Best Buys price on the camera was a solid $50 more than amazon, plus no sales tax and free shipping won me over easily.

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I bought a 22" LCD TV, but I wouldn't consider it a big ticket item.

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I didn't really see huge sales anywhere, and certainly not after Christmas. I think retailers are just hoping things will get better.

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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.

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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).

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I ended up in Thunder Bay for xmas, which meant being limited to Future Shop (a wholly-owned subsidiary of BB). I guess they must count FS sales in the -6.5% too?

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They had a pocket HD camcorder on sale for $90, combined with my reward zone discount coupon and some gift cards I had to burn, my total OOP was ~$27. So I bought something, but I don't know if they made any money on me.

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I bought a 60" mitsubishi DLP, it was about $300 less at BB than other places, and no delivery charge. I didn't even consider CC, because they are closing all of their stores in KC.

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Patricia McDermott Comeau

Having been to both cc and bb recently bb had better help and was eager to make sure we got the best price. Example pulled out the phone found the same item at Wal-Mart and Best Buy met the price and we never had to leave our line at the checkout.

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@Ash78: I used to work for HHGregg...

Good store, if you know how to haggle right, you can do well there.

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@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.

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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.

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Discounts? I didn't really see anything interesting discounted by a non-token amount..

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Best Buy has discounts... what?


BB was charging $400 more for the tv that I eventually bought for $2200 elsewhere.


They were also charging $900 more than the other highest price on my mother-in-law's laptop.


BB should just die. Horrible store.

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Went to the Huntington WV Best Buy before Christmas and saw no real "deals". Crossed the mall parking lot to Circuit City and scored an open-box Denon AVR-588 for under $150 including tax.

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I saw some great deals. I was able to get my mother in law a nice Canon digi camera (SD1100) with a case, 2 gig SD card, and an extra battery for $200 dollars.

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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!!!

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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?

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@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.

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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.

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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.

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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.

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I bought the complete series of The Wire for $89.99, which I thought was a great bargain. But it's not like BB was the only place selling it for that price, they were just far and away the closest.


By the way, if you've never watched The Wire, give it a try. It's amazing!

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It amazes me that a store like Best Buy reports a 6.5% drop and it has nothing to do with customer service.


It appears not matter how bad the service is, sheep still flock to the place...

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on most of best buy's holiday sales either the price wasn't that great, or the item was junk/useless to me. however, i did buy one of the $400 Acer notebooks for my girlfriend and she really likes it.

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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.

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@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.

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@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.

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@Kenmist: That seems like a pretty standard open box sale, not like they priced it down for new years.

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@cynical_bastard:
overreaction to an innocuous comment... go!

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@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.

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@Jenkinsbball: Exactly, I'm currently looking to buy a new receiver. BB has it "on sale" for $300 more than Amazon.

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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!

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@Norcross:

I got the same camera for my mother inlaw. $160 shipped from Amazon, plus a free 16G Class 6 SD card.

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@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.

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@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.

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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!

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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. :/

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A Best Buy sale you means you get the item for the same price you can get it anywhere else. They just remove their markup from "msrp".

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I got the Endwar bundle with 360 first-party wireless headset for $45 right before Christmas (just for the headset, selling the game on EBay.) I got The Dark Knight on Blu-Ray the week it came out, and a bunch of Blu-Rays the week of Christmas that were on sale.