Best Buy hasn’t been enjoying much success lately: Its CEO departed amidst allegations he had an inappropriate relationship with a female employee, prompting the exit of Chairman Richard Schulze for not handling that situation well. And oh yeah, it’s not selling as much stuff as it used to. Interim Chief Executive Mike Mikan isn’t parsing any words on that front.
“Not that long ago, Best Buy was the authority in this market; our stores wow-ed consumers,” he said during a conference call with analysts, according to the Los Angeles Times. “Not anymore. Today’s marketplace is different. From my perspective, it’s a marketplace we weren’t prepared for.”
He admitted that the company doesn’t offer a unique customer experience any more, and doesn’t have a “distinct competitive advantage” like it used to.
The company is trying to take a fresh tack these days, closing some stores and shrinking others down a sizable amount, while attempting to compete price-wise with giant e-tailers like Amazon. It also recently launched a Geek Squad service for AARP members to lure in an older customer base.
More changes are in the pipeline, says Mikan, and they don’t all sound too pleasant.
“Tough decisions will be made,” he said. “We must take a fresh look at our investments and the entire business, and I can assure you there’ll be no sacred cows.”
Best Buy the authority in electronics? ‘Not anymore,’ says CEO [Los Angeles Times]