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
The last few years have been a challenging year for
Best Buy (
BBY), never mind the stock's explosion in share price this year. BBY is undergoing a transformation -- and it's about time. After all, as the country's biggest electronics retailer, Best Buy has a big target on its back. As the firm works to shake off the threats from online rivals, it's making big strides to fix itself.
Until recently, Best Buy was little more than a physical showroom for online competitors. While the convenience benefits of its brick-and-mortar locations were hard to beat, its prices weren't -- especially on big-ticket items that historically offered the biggest margins. The "Renew Blue" turnaround plan aims to change that by boosting web sales, cutting costs at brick-and-mortar locations, and finding margin boosters like services to sell to customers.
Despite the huge benefits of online shopping, for many consumers there's still something to be said for talking to a salesperson and walking out with a product. That fact presents Best Buy's biggest opportunity to de-commoditize its sales experience right now. Margins should expand as BBY does away with earnings drags in its property portfolio. Along the way, investors should expect a boost to BBY's already solid balance sheet.
Currently, Best Buy pays out a 17-cent dividend that adds up to a 2.36% yield. As major concentrated shareholders look to get paid, that number looks likely to get boosted in the next quarter.
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.