Monday, October 25, 2010


Business Week

         The article we chose talks about how Best Buy, as a retailer, expects more consumer electronic retailers to follow Circuit City into the dust this year. Although Best Buy has struggled along with most retailers, the company is cutting cost to boost profitability and still opening new stores. Brian Dunn, CEO of the company says “despite the struggles Best Buy is actively scouting vacant Circuit City store sites…I take no joy in it, but I have every intention of capitalizing on the opportunity.” If Dunn's forecast holds, there will be even more carcasses for Best Buy to pick at in the coming months. As far as a list of stores expected to go under Radio shack is considered on the list because Radio Shack's core mobile-phone business has been eroded by the growth of retail outlets from carriers like Verizon and Sprint as well as by Best Buy's burgeoning mobile-phone business. Radio Shack also does brisk business in set-top digital converter boxes, but those sales are expected to dry up once the switch from analog to digital goes into effect later this year. “Best Buy's new leader said he's positioning the company "not just to duck and cover, but to come out of this and grow. There will be huge opportunities coming out of the back side of this difficulty." (BusinessWeek)





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