Decline in sales of Best Buy Co Inc.

Best Buy Co Inc. is popularly known as the best consumer electronics service provider which has a retail store as well as an online store. The company is based in the United States. Also, it operates in Mexico, China, and Canada. But the company faced a major downfall and the sales of the company as well as revenues have gone down. BBY stock price current stands at $28.44 after decreasing by 1.35% from the last closing. As Warren Buffett says, “In business, I look for economic castles protected by un-breachable moats.” Hence, the strongly built economic castle of Best Buy Co is collapsing. The company has faced a major decline hence there is less or negligible chances of turnaround.
The company’s officials and managements say that “we expect ongoing industry-wide declines in the entire consumer electronics category”. The sales have massively declined which placed the BBY shares in the negative territory. The company’s revenue, shares, revenue growth etc. have fell own and is lower than its peers such as Amazon Inc. Customers are choosing other companies like Amazon an eBay because of its quick shipment and lower prices. Because of the customers shifting to other alternatives, the revenue of this year is expected to plunge due to decline in consumer electronic sales.
The CEO of Best Buy, Hubert Joly says “we achieved market share gains in the U.S., fueled by our improved price competitiveness and an enhanced customer experience focused on advice, service and convenience.” The sales were decline by 4.1% in the consumer electronics category.
Speed bump
According to Joly, he believes that the company has hit a speed bump but will gradually improve in the near future. It was indicated towards the massive decline in sales because of the strategies that the company had adopted before.
Amazon Competition
It was reported that the company posted a net loss of $1.48 billion in two years. The company is nowhere near the business Amazon is doing by offering its customers quick shipping as well as low prices.
Conclusion
Hence in a nutshell, the company is looking forward to improve its services by changing and improving strategies in the upcoming years to cope up with the market as well as find its way back to success. Amazon have captured the online store market in the recent times, hence, it will be a challenge for Best Buy Co Inc. to rethink about its retail model.

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