Former Circuit City CEO Asks: Can Best Buy Beat Amazon with Service?
Traditional consumer electronics retailers are struggling. Best Buy’s quarterly earnings, released yesterday, were significantly below last year’s as a result of declining same store sales, lower gross margins and higher expenses. Radio Shack announced, in October, a quarterly loss of $47 million, compared to a slight profit the year before.
At the same time online retailers are flourishing. Amazon announced its quarterly sales were up 30% and its operating cash flow was up 8% to $3.4 billion for the trailing 12 months. While Amazon lost a small amount of money