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Best Buy opening 13 new stores in fiscal 2010 while spending $13M each

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.

Continue reading Best Buy opening 13 new stores in fiscal 2010 while spending $13M each

Best Buy (BBY) discounts Apple (AAPL) MacBooks in rare move

When Best Buy, Inc. (NYSE: BBY) starts discounting the normally un-discountable Apple, Inc. (NASDAQ: AAPL) MacBook laptop computer, we know it's a tough selling season. That's just what the largest consumer electronics retailer has done, though, as the cheapest MacBook being sold right now comes in at under $900. Until now, that's an unheard of price from any retailer.

Apple's grip on the MAP (minimum advertised price) for all retailers is strong. It's not known for heavy discounts -- or any discounts at all, actually. Apple's pricing arrogance, though, is part of what makes it so desirable. Talk to any salesperson who sells premium-priced products for a lecture on this if you'd like. Even so, Apple has had to cool its jets just this week on pricing at its own retail stores.

Then again, this is no normal retail landscape. Holiday retail sales are expected to be very bad and sales will be necessary to keep inventory turns up and product flowing. Sometimes they have to be made at any cost. The older Apple MacBook, which is still being sold even though newer models were just announced and released in October, is now being sold for $899. That's a full $100 under Apple's suggested list price. While it doesn't sound like a big discount, it is for an Apple system.

You'll notice that usually you don't see iPods or iPhones being discounted more than a dollar or two off Apple's list price. There's a reason for that, but it makes this $100 cut even more interesting. And some of the more pricier MacBooks being sold at Best Buy saw $100 and even $150 price cuts as well. Even Apple can't maintain its pricing smugness in this economy and keep sell-through where it needs it to be. Yes, there are market and purchasing conditions that can even pinch Apple, folks.

Best Buy (BBY) testing new smaller stores inside shopping malls

Best Buy, Inc. (NYSE: BBY) just keeps on ingraining itself into every customer niche it can. It's already entering the Chinese market. It may be coming to an airport near you. Now, possibly expect Best Buy to be seen in a shopping mall in your area soon.

In the Washington D.C. area, the largest consumer electronics retailer will open a new 3,000-square-foot stand-alone location inside the Fair Oaks Mall today that will sell wireless phones, laptop PCs and all types of accessories for both product categories.

There will be two more mall openings by Best Buy this month in yet-to-be disclosed locations. It will be double the size of the Best Buy Mobile kiosks already in place within some malls and will have locations next to your favorite Hollister or Yankee Candle stores.

According to the retailer, these new mall concept stores will cater to teens and women -- many of whom don't like shopping at its big-box locations. Best Buy has already turned its focus to women shoppers, and these new openings are just another leg in the stool from where I sit. Well done.

New Best Buy stores being designed with women in mind

Best Buy, Inc. (NYSE: BBY) is ditching the warehouse-blue store format that it's grown famous for. Well, not really -- but in some newer stores in Denver, that cheery blue is being supplemented by earth tones and skylights as the largest consumer electronics chain in the U.S. sets its sights on the female demographic. That's right -- the anti-gadget crowd who rolls both eyes when guys start salivating over that 50-inch flat screen television.

Women do have a huge (indirect) impact on consumer electronics sales, although the merchandising most retailers push definitely fits the male buying persona. So, instead of the gray, techie feel where those large flat-panel displays generally reside, Best Buy will be placing some (if not all) of those televisions into staged rooms that look like a set from a typical home. What a better way to visualize that new purchase than by seeing how it looks in the real world, right? Ever sold a home and staged it to sell? Same thing.

Best Buy even asked 40 local female customers to work with its employees to help them form ideas. In other words, merchandise your products in a way that makes them comfortable to be around and use, not as cold hard hunks of steel, plastic and chrome. Serving the needs of women shoppers better is a perfect way to grow sales in this economic state (if that's even doable) -- Best Buy certainly has the right idea here. There's nothing better than involving your customers in decisions that affect how they purchase, right?

Best Buy (BBY) chooses new brand agency to manage 'Home Life' category

Best Buy Co. (NYSE: BBY) has selected Minnesota-based Barrie D'Rozario Murphy (BD'M) as its primary advertising agency that will be charged with the ads and marketing to consumers revolving around Best Buy's "Home Life" business. The "Home Life" segment of Best Buy's business mostly involves the brown and white goods part of Best Buy's inventory (appliances), plus more. I'll suggest, right off the bat, that BD'M change the name to something other than "Home Life."

The change to an ad agency outside of Best Buy's normal corporate ad agent was due to a conflict of interest, so BD'M will now be responsible for corporate consumer communications and marketing planning for Best Buy's appliance business. The Best Buy announcement specifically references tuning into female customers with its "Home Life "business, which makes sense from my perspective. Who uses most of the in-home appliances these days? Easy answer, right?

BD'M will have to coordinate with Best Buy's overall ad agency -- BBDO -- to ensure branding and imaging are kept consistent, but it will be interesting to see how this new partner will refresh the marketing of appliances to the American female shopper. BD'M has a long roster of creating female-targeted marketing (Nordstrom, Jaguar and Lee, to name a few brands), and how the company will get Best Buy customers excited (if that's possible) over home appliances. Perhaps it could use a tagline like "Spin your way into Best Buy today." On second thought, scratch that.

Best Buy begins transformation marketing towards women

Best Buy Co., Inc. (NYSE:BBY) was founded with simple roots many decades ago with the "grab and go" mentality of having all electronics under one roof for predominantly male customers to come in to browse -- and ultimately leave the store with (paid of course).

While consumer electronic purchases are often made by men, women have a voice in their design and the selection offered at major electronics chains, I believe. The styling of many nicer electronics within several main categories looks better than ever, and often evokes an almost emotional response when looked at -- they are as much a piece of furniture as just a gadget.

The local Best Buy stores I have been into recently were quite loud and to be frank, obnoxious. A nice and relaxing atmosphere is *not* what you'll get at your local Best Buy, judging from my experience. What you will get is not enough help (during the holidays at least), long waits for customers, and blaring and annoying music that is way too loud to allow people to drift and browse the aisles. In fact, I sometimes am relieved when leaving Best Buy just to get away from the incessantly loud music.

That may be changing though, as shoppers may notice a softer, more personal atmosphere according to the company, which is "feminizing" the merchandising of consumer electronics in a way. The company says that music is quieter and lights are lower. Salespeople talk to customers about their lifestyles, what they want the technology to do for them, and how they want it to fit into their homes, offices, cars.

So far, though -- that's a very long stretch of a claim that I have not yet seen. It would be a welcome change, though. A very welcome one.

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Last updated: November 25, 2009: 03:16 PM

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