Best Buy's new chief is selling from Day 1

  • Article by: THOMAS LEE , Star Tribune
  • Updated: September 8, 2012 - 8:25 PM

Instead of closing stores, Hubert Joly wants to grow sales, a philosophy closer to founder Richard Schulze than Wall Street.

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ekholmSep. 8, 12 7:44 PM

...The CEO then offered to have Geek Squad install the flat screen tv, pay too much for a warranty that was not needed and sell the reporter a $200 HDMI cable. At that point, the price of the sale was increased by 200% and the reporter walked away from the deal. Sources close to the reporter say he then bought the tv on amazon for over half the cost.

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cman2500Sep. 8, 12 9:56 PM

Oh good lord all these people are out of touch. If you work there get our now more rearranging the deck chairs. When this next down turn hits BBY will be done.Unbelievable !!

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rayk1800Sep. 8, 1210:59 PM

I don't believe Showrooming is that big. The problem with looking at BBY and then buying at Amazon is you don't know if your going to get a new item or a returned item. Anyone that has bought camera equipment on Amazon knows the risk of getting a returned item with incomplete paperwork and packaging. BBY needs to dump the extended warranty hard sell and not take back items like tv's because a bigger one goes on sale and people return tv's to get the bigger one. Then BBY tries to sell the returned TV's as new. Wrong. I buy at BBY, Amazon, Office Depot, Target. If I see what I want and the price is reasonable, I pick it up.

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wtfwaldoSep. 8, 1211:33 PM

Note to BBY....this is not good optics...having the CEO of your company trying to sell blenders...in a Best Buy store. Seriously? Blenders is the future of Best Buy? OMG!!!

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wtfwaldoSep. 8, 1211:37 PM

The BBY model works if they can find a way to make the service/support component more affordable. They need to sell monthly subscriptions for support, just like Center Point Energy has a $17/month plan so they can service my furnace and ac once a year,even though I only use them every 3 years. IF Congress doesn't pass some sales tax neutrality bill soon, folks like BBY aren't going to make it against pure play e-commerce stores who don't have to collect sales taxes. We have a lot of Minnesota retailers who are vulnerable to Amazon, and if we want BBY and these others to go the way of Damark, then sit back and watch the show. Otherwise, write your Senator and Congressman and ask them to get off their duff and earn their paycheck....and support some of our largest Minnesota employers.

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wdsmiaSep. 9, 12 7:14 AM

I am surprised that there hasn't been more coverage over the fact that former BBY CEO Brad Anderson sits on the Carlson board. It would appear that BBY has a CEO in place with Joly that is aligned with BBY's founder whether Schulze takes the company back or not. After BBY bled the institutional knowledge when its key executives left, this was a direct move to put a CEO in place that has the same mindset as Schulze and Anderson to lead the company.

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rhankinsSep. 9, 12 7:22 AM

The game is changing. The old game was to get folks into your store, then sell them stuff. The new game is to get folks to your website and then sell them stuff. The stores/warehouses are now something you use to deliver more, and market less. In-store customers might reassure themselves that they're making the right purchase, or buy from someone else online, if that place can deliver better, cheaper or more conveniently.

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spartan227Sep. 9, 12 7:36 AM

It comes down to service.. More money needs to spent on training and hireling well educated people at the store level...

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balderdashedSep. 9, 12 7:38 AM

CEO Jolly is right about one thing: the Showrooming effect has been greatly exaggerated. It's a strange argument to suggest that because internet sales have grown, Amazon's customers are using Best Buy as a showroom. So I want to buy a 42-inch led TV -- Amazon has about 800 of them, and I can read about the features and specs, browse customer reviews pro and con, and easily check out reviews and prices on other web sites. Why should I get in my car and drive to Best Buy for the privilege of seeing one percent of what's available on online? Maybe for exercise -- I'll have to walk quickly to avoid being buttonholed by several blueshirts trying to sell me a cellphone plan (last trip I was approached three times in five minutes), and this does burn calories. Or maybe for the thrill of it -- trying to find the product you're looking for in Best Buy can be a bit like an Easter egg hunt, or searching for the St. Paul winter carnival medallion. But at least the winter carnival offers clues -- when it comes to the products in their stores, Best Buy's salespeople often have none.

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isbjornmydogSep. 9, 12 8:43 AM

I think it is great that he is out there. I work for a huge local company (the biggest, let's say it focuses on Healthcare) and it would be great to have the CEO selling along with us-even for a day!

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