Consumer electronics retailer Best Buy, Inc. (NYSE: BBY) has less competition now that former rival Circuit City is now out of business, but that doesn't mean it has had a stellar year so far. Best Buy has been hit hard by the recession just like all other retailers, but it's also planning for the future despite sagging sales and the like in its last three fiscal quarters.The Richfield, MN-based retailer will be opening 13 new retail locations in 2010, with each location having about 50,000 square feet and a cost of about $13 million. That's a tune under $179 million in store expansion next year, and would increase the retailer's U.S.-based store count to 1,045 stores in 49 states.
This is a good strategy for Best Buy. The company, like many, is taking advantage of an economic downturn to plan for long-term future expansion. It sits atop the mountain in terms of national retailing of consumer electronics.
Discounters like Wal-Mart Stores, Inc. (NYSE: WMT) and Costco Wholesale (NYSE: COST) have been upping their consumer electronics merchandising and selection, but from what I've seen, Best Buy still beats them both on not only pricing (the biggest differentiator) but breadth of product selection and presentation as well.
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Reader Comments (Page 1 of 1)
6-10-2009 @ 9:30AM
aimanddo said...
Jim,
From your Comment "...and would increase the retailer's U.S.-based store count to 1,045 stores in 49 states.", A quick question jumped into my mind. Which of the 50 states will I not be able to find a BestBuy in?