Best Buy ( BBY) should get out of the business of selling CDs, Jim Cramer said on The Street.com Wall St. Confidential
Web video Friday. Although Cramer says the consumer electronics retailer "really has this field to itself," it has a "tremendous amount of floor space" devoted to music CDs. Cramer called CDs a "going-away business. Way too much floor space devoted to a dead weight category." Cramer said many people get their music from iTunes, and that's a trend that's going to continue. "The weakness is what they have on the floor," Cramer said, "but the strength is that they may be the only game in town." Host Farnoosh Torabi asked Cramer what he thought about the store inviting people to sales events, and if Best Buy was trying to become like Nordstrom ( JWN). Cramer said that was a reasonable approach because Best Buy is selling some high-end products that run from $4,000 to $6,000. Cramer says Best Buy is a stock that is "down 3, up 10. If the Fed cuts, it should go up." He also said Best Buy should rise if Circuit City ( CC) goes down or gets in real trouble. But Cramer says he would rather own Costco ( COST) or Target ( TGT), because Best Buy "doesn't have a catalyst now."