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Best Buy, Inc. (NYSE: BBY), which saw modest sales gains in the holiday shopping month of December, is set to dominate the consumer electronics sector in 2008. Circuit City Stores, Inc. (NYSE: CC) is flailing its arms in surrender and competitors like Wal-Mart Stores, Inc. (NYSE: WMT) and Costco Wholesale (NASDAQ: COST) just cannot match the consumer experience for gadgets and gizmos that Best Buy offers.

Although Best Buy has a commanding lead in the consumer electronics marketplace in my opinion, the company's stock has been classified as one of the "worst stocks" to own in 2008 by The Motley Fool. Technically, the analysis is something I agree with. Indeed, there are many good things going for Best Buy going into 2008, but at the same time, consumer spending may decline as energy and food prices continue to be high. Consumers may very well curb their discretionary spending on flat-panel televisions, iPods and laptop PCs.

However, I don't agree with the statement that competitors are becoming better in the consumer electronics space. Wal-Mart has really made a push towards displaying consumer electronics much like Best Buy does. Despite a helpful customer service experience, breadth of selection and pleasing overall environment, it doesn't come close to Best Buy's customer experience (my two cents).

How about the prices? Best Buy is right there along with Wal-Mart, for example. From what I have seen, Wal-Mart's electronics products pricing is not any lower than comparable products at Best Buy. Wal-Mart also has no incentive program like Best Buy's ultra-successful Rewards Zone loyalty program. Considering all that, where would you shop for that next 50-inch plasma TV?

Best Buy considered one of the 'worst stocks for 2008' originally appeared on BloggingStocks on Thu, 17 Jan 2008 15:03:00 EST. Please see our terms for use of feeds.

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