Best Buy CEO Felled By Web Rivals
As gadget retailers live by technology, they die by it, too. Falling into the latter category, Brian Dunn, CEO of struggling Best Buy Co., announced his resignation on Tuesday. “Under Dunn's tenure, which lasted less than three years, critics have complained that Best Buy became a showroom for Amazon.com and other Internet retailers, with consumers going to Best Buy stores to sample electronics like high-definition televisions, but then buying them elsewhere at lower prices,” Reuters explains.
As a result, the world's largest consumer electronics chain has seriously struggled against stepped-up competition from Web retailers and discounters. In fact, the company has fallen short of sales expectations for several quarters in a row, as Reuter notes. “Despite offering bigger discounts and free shipping to lure shoppers, same-store sales fell 2.4 percent in the latest quarter, including a 2.2 percent decline at U.S. stores open at least 14 months.”
As such, Michael Pachter, an analyst at Wedbush Securities, tells Reuters: "I hate to be rude, but I think he (Dunn) was doing a terrible job. This is a company that had a sales guy in charge, and I just don't think they are well positioned to deal with the onslaught from the Internet."