Best Buy, or as known on the stock market BBY could be going down in a major way. Earlier today Best Buy released Q4 results, which were not good. The company is down 7 Percent, which translate to losing $1.7 billion. This massive loss is more than Best Buy can handle. The company is now undergoing a complete infrastructure overhaul. What does this mean? Sadly, 400 people will lose their jobs when BBY closes 50 stores.
With consumer spending at an all time low, Best Buy has not been able to maintain sales. They blame their loss on the fact that people are not buying electronics as readily. Some good news for the 400 people who will lose their jobs is that a small handful may be hired on at mobile Best Buy stands. Best Buy plans the opening of Best Buy booths in malls and other locations.
Fifty store closings is a part of an $800 million cost reduction plan. In America company will begin to focus more on eCommerce, yet in China they plan to open 50 new stores as par of a growth initiative. They also plan to strengthen customer loyalty as a whole by offering better customer service and increasing Reward Zone points. Full details can be read at Best Buys Fiscal Fourth Quarter and Full Year 2012 Report.
Best Buys plan sounds dandy, but some still believe that this is the first sign of a sinking ship. Investors seem to agree as they sell off BBY stock in mass.
No comments:
Post a Comment