India Markets closed

Now Best Buy Is Even Losing Out To Mom-And-Pop Chains

Ashley Lutz

Best Buy isn't just losing out to Amazon anymore. Even mom and pop chains are better off than the retailer, which reported abysmal earnings today. 

Brian Sozzi, an analyst at NPG Productions, explains: 

"After this type of news bomb, Best Buy reminds me of a decaying bridge; it was lovely and served an important purpose when it opened, but it’s decaying state through the years has caused a new bridge to be built nearby that is stealing all the car and truck traffic.   

The new bridge in this comparison is any other consumer electronics retailer not named Best Buy, and that includes local mom and pop chains that have ramped up their personal touch customer service efforts."

Consumers now have higher expectations from retailers. And while other stores have responded by focusing on customer service, Best Buy is laying off tons of employees. 

Back in December, Larry Downes at Forbes predicted that Best Buy would go out of business within a few years. He relayed his own horrible customer service experience at the retailer: 

A few days ago, I visited a Best Buy store in Pinole, CA with a friend.  He’s a devoted consumer electronics and media shopper, and wanted to buy the 3D blu ray of “How to Train Your Dragon,” which Best Buy sells exclusively. The item wasn’t there and the sales staff had no information.

But my friend decided to buy some other blu-ray discs.  Or at least he tried to, until we were “assisted” by a young, poorly groomed sales clerk from the TV department, who wandered over to interrogate us.  What kind of TV do you have?  Do you have a cable service, or a satellite service?  Do you have a triple play service plan?

He was clearly—and clumsily–trying to sell some alternative...I tried to change the subject by asking if there was a separate bin for 3D blu rays; he didn’t know.

While Best Buy's new CEO was poorly received yesterday, he does have a background in hospitality. Maybe he can turn the business around by deciding that customer service is worth focusing on. 

DON'T MISS: The Brilliant Tactic Walmart Uses To Fend Off Competition From Dollar Stores >


More From Business Insider