best buy cutting an additional 2,400 jobs, with about 600 of them being geek squad

[NutBucket]

Remember Radioshack? they used to sell diodes, capacitors and even computers. Now they sell only cell phones and way overpriced coaxial cables and accessories. The cell's are their main business now thanks to them being throw away devices.

Uh, they still stock some basic electronic components. Quite convenient since there is one in walking distance to my apt.

 

[MovingTarget]

I'm not surprised. I used to work for them back when they bought GS and transitioned their tech crews over to the "new" GS. Honestly, I naively signed up to be a computer repair person. I was constantly limited in what I could do to actually help customers and constantly pushed to "meet budget" weekly. We became warranty and accessory pushers, regardless of what customers needed. After a while, we were pushed to just try to con(vince) customers to do a backup/reformat/reinstall for just about any software issue on the tech side. I hated it, and eventually quit.

As a customer, I used to think they were great, but I can't even go in and browse anymore without being harassed every few feet by employees trying to be "helpful". You can see it in their eyes that they would rather not bother people unless they looked like they wanted help, same as me. Even if they weren't fleecing their customers, that kind of behavior ruins the shopping experience.

 

[SKORPI0]

Circuit City 2

People should just stop lining up/putting a tent days before their Black Friday sale.

That 42" Sharp 1080p TV they had for $199 looked like a low tier model, but still people wanted it. Limited quantity. Bait and switch to bring you inside the store to buy something else. Longs checkout lines too.

Not unique situation to their stores, but common if you're put something on sale .. make it available in quantity and limit 1 per household.

 

[Sonikku]

Best Buy killed my mother.

And raped my father.

Then raped my mother.

 

[QueBert]

BB will price match Amazon.com, and Amazon doesn't offer extended warranties. On some items like a Cell phone, mouse or a keyboard I want a warranty. I have bought them on both and they saved my ass. At Best Buy the extended warranty on a cell phone also covers the battery. I recently picked up a keyboard as BB, they price matched Amazon and I got the 2 year warranty for $20. I'm hard on my keyboards so I'm sure it'll break before 2 years is up. Getting a new $130 keyboard for free if this one breaks seems like a good deal to me

*shrug*

I would be sad if they closed, I like instant gratification and 80% of what I buy they sell, with the price matching I don't have any real reason to not buy shit there.

 

[MotionMan]

Uh, they still stock some basic electronic components. Quite convenient since there is one in walking distance to my apt.

True, but no one who works there knows what to do with any of that stuff.

Radio Shack has so much mainstream electronics now, it is almost sad.

MotionMan

 

[CPA]

Wait a minute! We're talking a little over 1% of their employees?!? How the hell is that a sign that BB is going down?

I've been with my current company for 14 years and have been through 3 major company-wide layoffs due to "restructuring". However, not once was this a result of the company possibly going under. It was due to either efficiency gains, needed profit increase to satisfy the market, reduce redundancy or get rid of non-essential personnel.

I can also tell you that he non-Geek Squad layoffs are primarily for the Loss Prevention folks at the front door. I know this because one of my wife's very good friend's husband is one of those guys, and he just got the word that the position is being eliminated. To me that sounds like eliminating non-essential personnel, very similar to what Walmart did by getting rid of their Greeters recently.

So, my point is that a company has many reasons for mass layoffs and it seems that Best Buy has a reason other than it's facing imminent company-wide closure. That said, Best Buy still sucks and I wouldn't shop there.

 

[manimal]

Wait a minute! We're talking a little over 1% of their employees?!? How the hell is that a sign that BB is going down?

I've been with my current company for 14 years and have been through 3 major company-wide layoffs due to "restructuring". However, not once was this a result of the company possibly going under. It was due to either efficiency gains, needed profit increase to satisfy the market, reduce redundancy or get rid of non-essential personnel.

I can also tell you that he non-Geek Squad layoffs are primarily for the Loss Prevention folks at the front door. I know this because one of my wife's very good friend's husband is one of those guys, and he just got the word that the position is being eliminated. To me that sounds like eliminating non-essential personnel, very similar to what Walmart did by getting rid of their Greeters recently.

So, my point is that a company has many reasons for mass layoffs and it seems that Best Buy has a reason other than it's facing imminent company-wide closure. That said, Best Buy still sucks and I wouldn't shop there.

good post and interesting point about LP.

 

[steppinthrax]

This is why Best Buy is going to hell.

http://www.bestbuy.com/site/AudioQue...&skuId=1267782

 

[PingSpike]

I just got back from the toilet where I read a Wall street journal article about Best Buy. Apparently the founder who still owns a 20% stake seems to want to take the company private, possibly to make large changes though. The stock is down 38% for the year and same store sales are down for two years running. Still, the founder was forced to resign from the board after some CEO/subordinate affair fiasco a few years back so I almost wonder if he's out to get revenge. Apparently the board has made some changes to prevent against hostile takeovers. The article alluded to the fact that private buyout would be unlikely to occur since the company is floundering and the founder would need other buyers to jump on a sinking ship with him to make it happen.

 

[manimal]

I just got back from the toilet where I read a Wall street journal article about Best Buy. Apparently the founder who still owns a 20% stake seems to want to take the company private, possibly to make large changes though. The stock is down 38% for the year and same store sales are down for two years running. Still, the founder was forced to resign from the board after some CEO/subordinate affair fiasco a few years back so I almost wonder if he's out to get revenge. Apparently the board has made some changes to prevent against hostile takeovers. The article alluded to the fact that private buyout would be unlikely to occur since the company is floundering and the founder would need other buyers to jump on a sinking ship with him to make it happen.

Going private would be great thing for BB. I sold all my shares a long time ago.

 

[AdamK47]

I remember when Best Buy was cool. That was around the same time 3Dfx was still alive.

 

[MovingTarget]

Wait a minute! We're talking a little over 1% of their employees?!? How the hell is that a sign that BB is going down?

I've been with my current company for 14 years and have been through 3 major company-wide layoffs due to "restructuring". However, not once was this a result of the company possibly going under. It was due to either efficiency gains, needed profit increase to satisfy the market, reduce redundancy or get rid of non-essential personnel.

I can also tell you that he non-Geek Squad layoffs are primarily for the Loss Prevention folks at the front door. I know this because one of my wife's very good friend's husband is one of those guys, and he just got the word that the position is being eliminated. To me that sounds like eliminating non-essential personnel, very similar to what Walmart did by getting rid of their Greeters recently.

So, my point is that a company has many reasons for mass layoffs and it seems that Best Buy has a reason other than it's facing imminent company-wide closure. That said, Best Buy still sucks and I wouldn't shop there.

Wow, I didn't realize this until you mentioned it. I don't go to walmart very much anymore, but the last time or two that I've been there I didn't see a greeter.

I know for sure that they didn't transfer the greeter employees at my local store to cashiers because despite the store always being packed with paying customers, there are only ~2 lines open with 10+ carts. Walmart needs to hire more people, not less.

 

[DAPUNISHER]

Wait a minute! We're talking a little over 1% of their employees?!? How the hell is that a sign that BB is going down?

I've been with my current company for 14 years and have been through 3 major company-wide layoffs due to "restructuring". However, not once was this a result of the company possibly going under. It was due to either efficiency gains, needed profit increase to satisfy the market, reduce redundancy or get rid of non-essential personnel.

I can also tell you that he non-Geek Squad layoffs are primarily for the Loss Prevention folks at the front door. I know this because one of my wife's very good friend's husband is one of those guys, and he just got the word that the position is being eliminated. To me that sounds like eliminating non-essential personnel, very similar to what Walmart did by getting rid of their Greeters recently.

So, my point is that a company has many reasons for mass layoffs and it seems that Best Buy has a reason other than it's facing imminent company-wide closure. That said, Best Buy still sucks and I wouldn't shop there.

The last year or so we have been discussing their problems. Since that time, the bad news has been steadily compounding for them. That is why someone asked if we should have an official death watch thread. Because these threads keep popping up more and more frequently.

People are making comparisons to CC with good reason. Most of what I am reading, is oddly familiar. http://seekingalpha.com/article/708531-best-buy-s-2012-layoffs-reminiscent-of-circuit-city-s-2007-layoffs

 

[Exterous]

if circuit city couldn't do it, how could they?

either they'll be another radio shack or nothing at all... actually circuitcity.com still exists... maybe bestbuy will follow suit.

Tigerdirect bought both the Compusa and CircuitCity naming rights.

Also - the biggest reason that Circuit City didn't survive bankruptcy is that the vendors/lenders were unwilling to extend new lines of credit due to their own financial meltdowns. Banks were unwilling to offer favorable or large loans. Vendors needed the cash influx of the liquidation more than they needed a customer down the road (Panasonic had recently fired some 20k-40k employees. Sony had almost a $3bn loss and was laying thousands of people off. HP was laying off ~25,000 people etc)

The post-petition loan that Circuit City obtained from its
lenders provided the company with a mere $50 million in
additional liquidity at a cost of $30 million in fees.

Its lenders were unwilling to extend the deadlines
imposed by the lending facility, without clear support and
participation from Circuit City's suppliers, which it simply
could not achieve.
Based on this recent experience, what lessons can we learn
about retail bankruptcies in the current economic environment?
First, we are experiencing an unparalleled business cycle
that is testing even the best retail operators. Bank credit
continues to tighten, debtor-in-possession financing has become
specifically onerous, and trade vendors are reluctant to extend
credit, except on the most egregious of terms. Without access
to credit, even the best retailers will not be able to survive.
Second, the current retail liquidations have little to do
with the Chapter 11 process. This is particularly true as to
the lease assumption-or-rejection deadline of 210 days.
It is telling that, when the attorney for Circuit City
explained to the bankruptcy court the reason why Circuit City
was forced to liquidate, he never mentioned the 210-day
deadline as a cause.
In fact, he specifically told the court that the reason for
the liquidation was, in his words, ``Due to the fact that
financing in this market is extremely difficult.'' This is the
hard truth, and it in no way implicated shopping-center
landlords or the current Chapter 11 process.

http://www.gpo.gov/fdsys/pkg/CHRG-111hhrg47924/html/CHRG-111hhrg47924.htm

Geeksquad has gotten pretty bad over the years, their stupid now too.

They went with the method of trying to compete in the 'operating overhead' section of their online competition at the expense of the shopping experience. This means lower wages and less training. They realized that anyone who gained enough experience to leave would leave for better pay. So why waste time trying to train them? Better make it as cut and dry as possible. Here is a script. Read from it.

IMO it was the wrong move as they simply cant compete with overhead costs. Their operating model is too different.

Of course its entirely possible that they would be doomed regardless of what they did. At best I think we will see a much smaller company with stores only in select profitable locations *cough* Microcenter *cough* Frys *cough*

 

[GoPackGo]

It does surprise me to hear they're cutting Geek Squad staff, but I think people are starting to catch on to the scale of the rip off being perpetrated by them.

LOL at Best Buy. As was mentioned in a thread earlier this year, I think the thing that really hurt them was when their jackass CEO came out and said they didn't need "bargain hunters" at their stores and eliminated most rebates. I'd ask the idiot how that is working out for them, but I think he was 1 or 2 CEOs ago.

Imagine my amazement when I heard they're building a NEW STORE in the town next to me to replace the existing store. Struggling stores shouldn't be doing stuff like that.

That is an excellent point... I also wonder how the "keep changing how the rewardzone works" has affected them. I hate the fact that you can't earn points using a gift card.

 

[GoPackGo]

Best Buy has made marketing mistakes but their biggest fail is overlooking the feeling the consumer has while shopping. It can referred to as "atmosphere" or "vibe".

When you are shopping at any store the feeling should be that you are welcome and invited to take your time, peruse the merchandise, and yes, pick the items up and examine them at your leisure. The assumption by management that they need to prod you into buying something turns off the modern consumer. Big box retailers are not car dealers.

One thing Best Buy used to require is product knowledge in order to work at the store. They also had monthly / quarterly training on new products and they had to take tests. Most of those people are long gone and when you actually want to ask a question, if it's not on the product card they are clueless.