Is this Best Buy CEO Hubert Joly's vision? Is this what makes him a turnaround specialist?
We built it and managed to stick around so people will come. And we'll focus the business on super-serving people who might not be the most tech savvy in the world. (And, as somebody who uses technology to interact with Cramer on a daily basis, I think he sells himself short in that regard).
While I understand and appreciate the demographic makeup of the U.S., I just can't imagine building a technology-based business around customers who can't seem to connect some wires and press a few buttons (and, again, I think most people are capable, but, if they have the means, leave the elbow grease to the Geek Squad). And then Best Buy's other attraction is price -- we'll sell you stuff for what the online guys sell you stuff for.
This is the product of the decade-long butt whipping Amazon.com (AMZN - Get Report), Target (TGT - Get Report), Walmart (WMT - Get Report) and others administered to Best Buy? To stress customer service and price. Isn't that what Macy's (M) and Sears (SHLD) have been doing since the mid-to-late 1800s? This is the transformation Joly is bringing to big box retail?Somebody has been hanging out with Ron Johnson. Joly and Johnson: Masters of the culture of obviousness. While this hollow resurgence might lift the stock price -- great trade if you made/are making it -- it's a toxic recipe for Best Buy as well as the brick and mortar space's long-term sustainability. Best Buy is doing nothing to prevent itself from getting its butt whipped once or a dozen more times before the decade expires. It's not positioning itself to innovate and avoid getting out-innovated; rather it's hanging on for survival with a set of unimaginative, reactionary moves it should have made when Jeff Bezos was busy visioning in the mid-1990s. Go long at your own risk. But don't think for a second you're making an investment; you're making a trade in a stock floated by a company setting up to make the same types of mistakes twice. Follow @rocco_thestreet -- Written by Rocco Pendola in Santa Monica, Calif.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts