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alstry (< 20)

Alstrynomics....All about being RIGHT



June 16, 2009 – Comments (3)

How bad is it really out there??????

Best Buy's same-store sales fell 6 percent

Think about that number for a itself it is bad enough.....then factor its biggest big box competitor, Circuit City shut down for the entire time period allowing BBY ot gain market share!!!!!!

Imagine how bad the numbers would have been if Circuit was still operating???

Now Citigroup and others say credit is going to be much harder to get???  How do you think that is going to impact a credit based economy???

If you don't see the light will soon......the end of 9.09 is not much time.

3 Comments – Post Your Own

#1) On June 16, 2009 at 10:24 AM, wasmick (< 20) wrote:

BBY is a crap business in a crap industry.  CC's demise has little to do with BBY.  The impending death of BBY is the same as every other big box electronics retailer.  Compounding that is the fact that BBY's biggest issue isn't another crappy big box retailer, it's being a very low margin business coupled with the ready availability of better pricing and delivery through the internet.  I'm surprised it has survived this long. 

Using BBY as a proxy for anything is as ridiculous as using Starbucks and Krispy Kreme. 

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#2) On June 16, 2009 at 6:15 PM, bigcat1969 (81.39) wrote:

I disagree wasmick.  I think Best Buy is one of the best indicators of what you might call 'self' spending for most tech savvy folks.  They cover the range from CDs, DVDs and video games to tvs and computers.  When they can't profit from CC's demise and Sears continued same store sales declines, it means that spending on the electronics habit is taking a big hit.

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#3) On June 17, 2009 at 9:45 AM, wasmick (< 20) wrote:

I don't disagree that electronics spending is taking a hit in this environment as is virtually every other kind of discretionary spending, that's hardly news.

But using BBY as a proxy simply because CC went out of business is silly.  They're the same business.  Why would anyone assume that BBY's fortunes would behave differently from every other big box electronic retailer in the past 30 years?    They're not different. 

Every single one of the products you mention is available elsewhere (although not all in one place other than the internet) and each is available on the internet at a better price than BBY is offering.  Why would anyone with any sense go to BBY again?  What's the value proposition?   

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