NEW YORK ( TheStreet) -- Corporate turnarounds are never easy. I was never in the camp of those who thought beleaguered retail giant Best Buy (BBY - Get Report) could escape the grasp of Amazon (AMZN).Amazon has been stealing customers away through its online ecommerce platform, while Best Buy's margins were being squeezed on the ground by, among others, Wal-Mart (WMT).
Elsewhere, it doesn't seem as if Best Buy's management has figured out ways to keep Amazon and Wal-Mart from picking off its electronics business, which was down roughly 12% this quarter despite improvements in merchandising and showroom advancement. Although areas such as appliances and phones posted growth of 12% and 8%, respectively, these were negated by a 17% decline in entertainment. I really want to like Best Buy again, especially after seeing all of these efforts. Plus I've been wrong in the past. But the eroding margins are still discouraging. Gross margin shed 180 basis points while operating margin declined by 70 basis points to 1.8%. Although this was still enough to beat estimates, the 36% decline in operating income still stood out like a sore thumb.