Best Buy Co. (NYSE: BBY), which recently gave a dire prediction about the state of its future sales, has decided to cut back on the amount of inventory carried in each store during this holiday season, as it weathers the consumer spending downturn caused by the current economic recession.Many industry titans have indicated that this is the worst retail environment they've ever seen, and that list now includes Best Buy President Brian Dunn. Dunn indicated that the speed and depth of the recession caught the consumer electronics retailer off guard and by surprise. As a result, the retailer is curbing television commercials and is doing more to pump its lower prices through email and cheaper marketing methods.
Although Best Buy is now offering zero interest for 18 months on all purchases $499 and up, that's not good enough. If Best Buy really wants to get feet in the doors -- even in a recession -- it should offer no interest financing for all purchases above $19.99.
That's right, anything from the price of a new DVD on up. Trying to push sales of its recently-unveiled and overpriced Blue Label goods won't cut it. It should pull those goods until the recession has ended and re-introduce them. Customers aren't looking for products created with their opinions in mind. Right now, it's all about price.
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