The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( TheStreet) -- Best Buy ( BBY - Get Report) has been battling aggressively to fight against the drowning effects of sluggish economic recovery in the U.S.

The resulting decrease in consumer spending on electronics goods has made the situation much more of a struggle for the specialty retailer. According to Best Buy CEO Brian Dunn, the TV industry continues to be challenged and its TV sales comps in second quarter were down low double digits. Best Buy competes with general retailers like Wal-Mart ( BBY - Get Report) and Costco ( COST) as well as other specialty retailers like Radio Shack ( RSH) and GameStop ( GME).

Our price estimate for Best Buy's stock stands near $34.70 , implying a 35% premium to the market price.

Best Buy has initiated various steps to provide a boost to its sales.
  • It launched Best Buy Market Place to allow third party sellers to sell their products through BestBuy.com.
  • It is working on creating innovative digital marketing strategies. It recently launched Deal of the Day program, which is designed to drive additional traffic and new customers to BestBuy.com.
  • It expanded its Geek Squad Tech Support program which offers customers one to two years of comprehensive computer service via remote chat session, a store visit, phone call or e-mail.
  • It initiated a Buy Back Program at the start of the year that allows customers to return a product within two years of purchase and get a gift card equivalent to product's present worth.
  • Despite these initiatives, Best Buy reported dismal second-quarter performance numbers.

    It reported a 30% fall in operating profit for second quarter 2011 with flat revenue growth for the quarter. We believe that it would be difficult for the world's largest electronics retailer to deliver positive performance unless the economic conditions improve. The recent initiatives could definitely pave the way for an increase in Best Buy's topline growth. However, presently, much of this seems to boil down to consumer confidence in the U.S. economy.

    See our full analysis for Best Buy here.

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    This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.