It’s always sad to hear of a company struggling in this difficult financial climate. Bad news this week involves Best Buy. The company have suspended their profit forecast, amidst growing concerns about how online shopping is eating into their sales.
General consensus is that more and more people are viewing products in store, then looking online for a cheaper option. In the past there has been a trust issue with buying online, but with the internet working hard to ensure secure payments, improve delivery times and undercut high-street retail, people are voting with their fingers. So the writing is on the wall; adapt or die.
Market shares are being taken by companies like Amazon, so a strategy like increasing retail units seems very one dimensional. Yes people are still buying in shops, but with online getting bigger by the year, month, day; why ignore the growing market?
So, Best Buy, it may be time to invest in a new approach, before it’s too late.