Best Buy is about to release earnings results. Ponder the Bear Case Scenario:
Entertainment software such as games and movies is rapidly declining. Best Buy has way too much floor space selling you DVD’s at full price which Netflix will have for you soon.
The product mix remains bizarre. I can get an espresso maker, a smart phone, a big ass TV, a bag of chips and a soda all in the same place. I just don’t think so.
Other retailers are picking off Best Buy sweet spots. Best Buy is not picking off someone else’s or coming up with something new.
Consumer electronics is a blood sport with rapidly declining margins. It’s always about what’s new what’s next.
Best Buy so far is not what’s next.
George Gutowski writes from a caveat emptor perspective.