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), Target (TGT), Walmart (WMT) 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.
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