This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Will Best Buy Go Out of Business?

NEW YORK ( TheStreet) -- Best Buy's (BBY - Get Report) board of directors blew it. Shareholders should demand that, to a person, they're removed and held in contempt.

The board let investors down. It let Best Buy employees down. And, from a broad perspective, it let the largely pathetic retail space down.

If it stays the present course, Best Buy will go out of business.

The company must capture the Walmart (WMT) and Whole Foods Market (WFM) audiences and all those in between.

But how do you create a retail environment that brings shoppers from diverse backgrounds together under one roof? And keeps them coming back irrespective of how technologically advanced society becomes?

An environment that serves low-income households; people crazy enough to camp out for a Black Friday deal; folks who, to save a couple bucks, will buy an iPad from Best Buy, forgoing the Apple (AAPL) experience; and the well-off who drop thousands on guitars, refrigerators and home entertainment setups with a relatively carefree regularity.

An environment that makes Best Buy cool like Apple or Lululemon (LULU), as convenient as (AMZN) and as progressive technologically as Starbucks (SBUX - Get Report).

That's quite the task. And there's no way in hell Hubert Joly -- the man Best Buy plugged its CEO hole with -- can get it done.

With that in mind, I finally got around to watching Best Buy's Analyst and Investor Day Webcast from earlier this month.

The experience killed nearly all hope and optimism -- expressed here, here and here -- I had for Best Buy.

I gave Best Buy the benefit of the doubt because it hired young and tech-minded Stephen Gillett away from Starbucks where he helped pioneer the company's superior mobile and digital efforts.

For a minute, I thought Best Buy might follow in the footsteps of Yahoo! (YHOO), who hired the youthful, aggressive and with-it Marissa Mayer as CEO.

It made too much sense. Best Buy loaded Gillett with responsibility and oversight (see my previous BBY articles for details). It flowed logically that you give the guy free reign to transform Best Buy into the type of retailer he played a key role in helping Starbucks become.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BBY $31.78 0.95%
SBUX $61.39 -1.27%
AAPL $118.30 0.42%
FB $104.24 -1.15%
GOOG $742.60 -1.02%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs