I’ll preface this comment by saying that I’ve been (unprofitably) short Best Buy for a few months now, so …. I’m interested to see the retailer’s moves today. I have a general thesis that downbound companies go through multiple phases, analogous to the stages of grief when dying. Late on this list is “Doing dubious acquisitions”, and it strikes me that Best Buy has reached that point with its purchase today.
I am, however, perfectly happy to be convinced I have this all wrong. What is the strongest case for continued Best Buy dominance going forward? Is there a role for a big box retailer in consumer electronics in a world of Amazon, Pricegrabber, NewEgg, et al? I’m genuinely curious.
I’ll start things off: I haven’t purchased anything in an bricks-and-mortar electronics retailer in at least three years, and maybe longer. I have popped my head in, mostly to a) use the restrooms, oe b) treat the store as a showroom for things I was planning to buy online.