Circuit City died because their management team made a series of errors stretching a decade. Their real estate plan was crap, their inventory management was crap, their decision to stop selling appliances was crap, and their decision to go from a commission based compensation plan to an hourly rate was crap.Well it looks as if you can say that about Best Buy also?
After today's earning release, I agree with you on Best Buy. Thumbing through trailing twelve month statements, they need to cut half of their real estate costs and also need to a better online presence. Combine this with a head scratcher of a CEO pick (this guy has never done retail or a company this big) and the fact that some shareholders might sue because the board is not listening to the founder's takeover bid and it is ugly for them in the future.
Then they're completely crazy & out of touch with reality. Any CEO would fail if they kept with the same vision because of simply what it is at hand. They'll end up suing each other & tearing the company apart instead of seeing the big picture. Best Buy, and most retail like this, needs to start the painful process of scaling back these huge storefronts, fire a bunch of zit faced employees who aren't needed, increase their online presence & use the store spaces for pick ups, exchanges, distribution, etc.
Amazon has it right. Check this out: http://www.businessinsider.com/amazon-locker-2012-8
Yes, its small & not in a lot of cities. But I can imagine a not too distant future where people just order what they want online, even bigger items, & go pick it up locally. Maybe even the same day if distribution centers are close by. And with very little overhead so prices remain the cheapest they can.
This is the kind of major disruptions I'm talking about. I'd bet anything that most the big box & other retail crap is gonna go bye bye in the next decade. Blanding Blvd will look like a damn bomb hit it.