I don't see how they can match online prices, pay for all that B&M overhead, and stay in business long term.
That was my thought as well. Their new strategy seems to be double down on the old failed strategy. Competing on price with online retailers is a complete waste of time. Online retailers don't have tons of B&M stores and their associated costs and logistical problems so they will drive you right into the ground on cost without even trying.
I read a pretty good article (which I unfortunately can't remember where I read it) about how stores like Best Buy need to offer a local service that you just can't get online and forget about trying to win the price game. Probably like a geek squad that didn't suck and serviced lots of products. The article went on about how instead of playing to the strengths of the retail store, they ignored them and focused on battles they could never really win. At the same time internet retailers like amazon and newegg have worked really hard to offer things online that you couldn't get in a retail store like customer reviews and tons of products while also working very hard to mitigate their disadvantages with better warehouse networks and great websites.
The trouble is a lot of things seem to be designed to break and then be thrown away now so I feel like service of products has kind of been gutted in general. And best buy has been going in the wrong direction so long its probably to top heavy and entrenched to make any big changes. Most big companies seem to become filled with dinosaurs that protect their dying core business at any cost, leaving the brand more or less helpless when times change.
On a side note some local businesses started hemming and hawing to the state government that they can't compete with online retailers because of sales tax. These guys are just deluded more or less. Online retailers haven't out competed you on price, they've out competed you on everything. You can charge sales tax if you want, I'll go to your stores just as often. Local stores usually gouge the hell out of you on small items and then bombard me credit card offers and extended warranty plans after waiting in a line to pay for the item. I have to lose part of my weekend and pay for gas to drive to the store where I don't even know if they have the item in the first place or if its in stock. I wander around the store like a jackass while every employee gives me the same "I don't know, that isn't my department line". I also can't even make a guess about whether its a piece of shit or not when I finally find it. I can buy shit online in my underwear, it takes 5 seconds, I often get more pictures of what it looks like besides the outside of the box, there are customer reviews right there, it comes to my door and their selection and stock is known before I purchase.
The ultimate irony, when I go to stores like Lowes to look at an appliance they don't have any of them on the display floor or in stock and tell me to look at pictures online. My wife went to a clothing store where they didn't have any size small and told her she could order them online. My mother told me yesterday she went to a store to buy a curtain rod and again they told her they didn't stock any but she could buy them off the website. Even in businesses like appliances (where you want to see the item to determine fit and quality) clothing (where you want to try the item on) and selling to old people that hate computers businesses are simply don't know what they're doing. As they are run now most of these stores could be replaced with a return kiosk, improve their website and do more than they were before. Why aren't they shutting down their retail locations or changing them so actually offer something?