According to several gaming websites and blogs this morning, Best Buy (NYSE:BBY) has written an internal memo regarding sales of the Nintendo Wii and how to fully capitalize on the craze for gaming consoles this holiday season. The leaked Best Buy memo cites the following three reasons for holding back on Nintendo Wiis until December 17th:--"This is the last competitive weekend for holiday shopping, which encourages a large amount of traffic to our retail stores once customers realize the system is available."
--"Customers shopping for other products will have the ability and be encouraged to purchase the gaming console."
--"The system is more readily available then (sic) other competing gaming systems."
What is Best Buy up to here? The largest consumer electronics retailer in the U.S. is apparently trying to fully exploit the holiday shopping season by implementing a "mad dash" strategy. Last minute advertising will probably state that only "XX units remain per store!" in a marketing ploy to sell out of all Nintendo Wii's before the Christmas holiday ends.
With the Nintendo Wii being more available that the Sony Playstation 3, this makes sense for Best Buy as it tries to get inventory out the door and ensure customers don't leave mad when they can't find a Sony Playstation 3. Shrewd move, Best Buy.
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Reader Comments (Page 1 of 1)
12-14-2006 @ 1:46PM
Joseph said...
Walmart did the same thing. They had Wii's instock but were told to not sell them until dec. 6th at 7am.It was part of a "re-launch" according to walmart. Ridiculous. I know because I work there.
12-14-2006 @ 5:42PM
Michael said...
EB Games is doing the exact same thing - the manager told me he had units out back, but that they were not allowed to sell them until Sunday at 10am. Wouldn't even take a bribe - I tried.
12-19-2006 @ 5:28PM
Ken said...
I don't suppose anyone here knows the definition of "embargo". This is a very standard, long-practiced policy in the retail industry.
Why doesn't Borders or Barnes & Noble just open those pallets of the newest Harry Potter book the second they arrive? Why doesn't Virgin just allow a free-for-all when the latest Janet Jackson disc comes off the FedEx truck?
Enough of the sarcasm, or too-good-for-the-world attitude. BBY rose from a bona-fide tragedy when a tornado ripped right through the largest Sound of Music store (Sound of Music was a St. Paul-based stereo store, and the predecessor of Best Buy Co., Inc.) to become the country's largest electronics retailer in less than 20 years. They certainly didn't get the reputation and sales performance they've achieved by engaging in unfair or unethical business practices.
As with any hot item, larger retailer outlets will ***always*** receive their shipment before the smaller Mom & Pop shops. This is because Bob's Game Store only needs about 20 minutes to uncrate, stock and create a display, whereas a company which has 800+ stores needs to ensure that ***all*** their stores have received undamaged and complete shipments, cleared shelf and display space of other items (usually working an un-standard third shift, in order to not disrupt their customers “shopping experience”), set up demonstration units, scheduled extra staff (if needed) to accommodate their customers, trained their sales staff on how to set-up, sell, and demonstrate the units, and re-stocked the items which need to be moved, in order to sell the product to you - who obviously definitely need to get your hands on a Nintendo console ASAP.
You might also find that the guy you tried to bribe - and all of his employees, co-workers, and even his corporate bosses - are not allowed to purchase even one unit of any high profile item from their own store (they must go to a competitor) until after the holiday rush is over, under standard industry practices and most corporate policies, in order to ensure that all units go to their customers.
I'm sure glad I never got into the gaming "thing". I can't imagine being so upset about such a trivial thing as when I can buy a ***game***. Aren't there more important things in the world than a Nintendo or X-Box?