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Don't Get Too Excited About Best Buy

If you want to play temporary pops, false optimism and dead cat bounces on a BBY, more power to you. If you time it right and make money, chest bumps and fist pumps all around. But, if you think these fits and starts mean anything about the long-term prospects of Best Buy (or JCPenney when it pops), you're as delusional as Ron Johnson.

Best Buy has always chased its own tail. Unless there's some dramatic managerial and cultural change at the company, it will always chase its own tail.

Best Buy, JCP and other retail skunks remind me of terrestrial radio (AM/FM). They do nothing proactive. No innovation. No there there. Rather, it's all about some other technology, some other strategy, some other company's shrewd, bold or competitive move forcing their hand. But, it takes way too long for that hand to get forced.

Jeff Bezos at Amazon.com (AMZN - Get Report) saw the future of retail more than a decade ago. Just like Joe Kennedy, the CEO at Pandora (P), according to the company's co-founder Tim Westergren, planted the seed to disrupt radio roughly ten years ago. These guys pioneered. And everybody else followed slowly, but not surely.

Old-guard retail. Traditional radio. There's little difference between the two from cultural standpoints. And that's why, while they might persist and subsist at unexciting levels, most will never break free from mediocrity and irrelevancy. The culture of obviousness holds them back.

What do they need to do to bust out? It starts with no real specific direct action. It's more broad. More cultural. Eschew being retailers and radio people; fire those not willing and able to do this and hire people from the industries of today. People capable of actually disrupting and transforming.

-- Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
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