Best Buy announced its fourth quarter fiscal earning yesterday in which they revealed a year over year decline in revenues. The data showed that there was a 4.5% decline in revenues over a 3 month period when compared to the previous year.
Brian Dunn, the CEO of Best Buy is looking to expand their online presence via BestBuy.com. Best Buy is aware that many of the items that can be purchased in their stores can be purchased for much less online. They are looking to compete better with companies like Amazon.com or Newegg.com. Right now, the selection on BestBuy’s website doesn’t even compete with pricing available on other websites.
“For example, historically we would carry 100 televisions–I’m using that as an illustration–100 televisions within the store,” Vitelli said during the call. “Now we’ll have over 400 televisions online, of which 300 will be online only. And that allows us to be very aggressive in the online-only pricing, because we have a similar operating model there to compete effectively in that channel.”
I for one just visit Best Buy occasionally to see what new stuff they have, if I am going to make a purchase I then just visit a cheaper website. I highly doubt that Best Buy will be able to compete with Newegg.com or any other large website in the near future it will take Best Buy a couple of years to come even close.
If Best Buy could bring their prices closer to that of other websites, that combined with their site-to-store program could be a large money maker in the future. Imagine being able to walk into a Best Buy store and purchase something for the same price that you can get in on Newegg. [Cnet]