Best Buy Cleveland will face tough challenges to continue its long-serving retail sector in the following: • More competition and less innovation • Competition from online and high streets • Greater competition on low-profit margins and under capacity in some markets. Also, watch for more stores being forced to close in certain markets like Phoenix.
If we see the number of stores being sold off we believe that we will see even lower profit margins and this trend will continue to play out.
More stores being sold down the street should lead to even lower operating margins and a higher return for shareholders Be a survivor, You have to be willing to survive any storm. And in a survival situation where you know your fate, it is only a matter of time before everything that is important to you is lost.
These are the trends that will see BestBuy continue to survive but change the focus of the company away from brick-and-mortar stores to online shoppers. They should focus on offering an engaging sales experience that includes online ordering and customer self-service. They should also focus more on physical stores. They currently have stores in Canada, the United Kingdom, Germany, and other global markets and it is a sad fact of the retail industry that we have to compete on price.
“As a franchisee, we are forced to rely on the same retail channel and pricing structures that our brick and mortar competitors are using. If we are forced to compete on price we stand to lose.
Best Buy has had problems in locations like Canada and the United Kingdom; one could argue that these locations are a poor fit in this case. However, if we can find success in U.K. and U.S. markets in the future we have the makings for success. There we are offered a high-quality customer experience. In essence, there is nothing they can offer you that you don’t want or need at home.