The Death of Best Buy

ReadWriteWeb: Amazon vs. Best Buy: A Tale of Two Retailers

I've posted on Facebook quite a while ago how I thought Amazon was eating Best Buy's lunch.  I can't think of the last time I went into a Best Buy and actually PURCHASED anything.  Usually I go in to look at something, and like the rest of America, I go home and order it on New Egg, or Amazon, or "Insert Site Here."  It seems like their entire model is falling apart before their eyes.  For each department, there is another company that does it better and cheaper.

Sears, Home Depot and Lowes have the appliance market cornered (I threw Sears in there for old time sakes.  They are just as doomed as BB I think...)  I don't know anyone who purchases DVDs anymore.  They attempt to sell cameras, but I don't know anyone who would actually buy an SLR from them when companies such as B&H sell for so much cheaper.  Even other stores such as Ritz and Wolf Camera at least are staffed by people that know what the hell they are talking about. 

Movies are right behind DVDs is sagging sales.  With the explosion of streaming options and cheap rentals, it's harder to justify purchasing a DVD or Bluray.  Why spend $25 on a Bluray when I can push it to the top of my Netflix que and have it within 2-3 days.  I can even rent something from Redbox 25 times before it becomes more economical to purchase it.  The cost just isn't justifiable anymore.

The one area where I feel they could actual compete is in televisions and entertainment systems, but they still can't compete on price.  When I purchased my 52" Samsung LCD, I got it for $1000 cheaper on New Egg during a great sale, including free delivery.  The warranty service from New Egg was also $300 cheaper than Best Buys.  Not to mention Best Buy's overpriced peripherals.  I can get an HDMI cable on New Egg for $4, or buy a Monster Cable for $80 at Best Buy, with no difference in video quality...

I think Best Buys only chance of survival is to mimic the proven model of the Apple Store.  They need to shrink their footprint dramatically, focus on consumer electronics, and put a huge emphasis on actual customer service with a knowledgeable staff.  They have an advantage that they sell cell phone for four different carriers, plus Android tablets and laptops.  Focus on that, with interactive displays similar to Apple.  No more fake plastic phone tethered to a crappy cart.  The real deal, with real helpful people.

If Best Buy doesn't dramatically change, they're doomed to fail.  The economics of Amazon are too much for Best Buy to compete with.  Their only chance is to make a dramatic change.  Hopefully the new CEO can figure that out quickly.

Meanwhile, as a shareholder of Amazon stock, I subscribe to the model, "If you can't beat 'em, buy into them."

**********UPDATE 27APR12*********************
After reporting first quarter earning, Amazon's stock price is up $30 today to ~$226.  Best Buy, meanwhile, is plodding along...

Are kilts coming back into style?

So I was playing on REI's website looking for some new shorts for this summer and I noticed a dude wearing a kilt from Mountain Hardware.  I immediately saw the utility in that while backpacking, and after a little more research, it turns out they are become quite a fad among certain circles.

One of the largest brands is called Utilikilt and they sell a handful of varieties for various purposes from everyday dress, to construction, to survival.  It appears they are one of the largest manufacturers of kilts and have a handful of stores around the U.S.

(Photo from www.utilikilt.com)

I can only imagine how comfortable it is to have all that air conditioning while hiking.  No wedgies, no chaffing, just a cool breeze and endless comfort.

I'd love to pick one up, but at $215 for the original, and $330 for the Survival, I'm not sure that's quite in my price range for a hiking garment.  Plus I don't think my wife would hike with me anymore...