• by Sarah Mahoney  @mahoney_sarah, November 12, 2008

Best Buy, the big-box electronics store that has fared relatively well in the recent retail downturn, says things are looking mighty bleak. In a statement warning investors about tumbling same-store sales, it says it is unlikely to make its financial targets, and that the current economy "has limited the company's ability to project revenue for the critical holiday shopping season and the balance of the fiscal year."

Same-store sales fell 7.6% in October, and 1.3% in September.

"Since mid-September, rapid, seismic changes in consumer behavior have created the most difficult climate we've ever seen," it says in its statement. "Best Buy simply can't adjust fast enough to maintain our earnings momentum for this year." It now predicts that same-store sales for the balance of its fiscal year, from November through February, could fall anywhere between 5% and 15%.

"In 42 years of retailing, we've never seen such difficult times for the consumer," company executives add. "People are making dramatic changes in how much they spend, and we're not immune from those forces." Still, the retailer insists that it is gaining market share, and that other indicators are strong.

"We continue to see improvements in employee turnover, customer satisfaction and market share--and our commitment to our strategy of customer centricity is unwavering. In fact, given recent announcements by competitors, we believe we have even greater potential to serve new customers and to capture market share in the months and years ahead."

The Minneapolis-based chain's announcement comes just days after Circuit City, its smaller rival, filed for bankruptcy protection.

Separately, Best Buy says it will roll out a series of in-store workshops next week in its 25 largest markets, in partnership with the National Association of Broadcasters, to educate consumers about the looming switch to digital television. Workshops will use local TV personalities, as well as Best Buy experts.