A Forbes story Monday gives Best Buy a few more years before it goes out of business.
Competition with Amazon and also Apple Stores and the failure of 3D to take off is only part of the reason. For the most part, Best Buy’s demise is its own fault, claims Forbes contributor Larry Downes.
Despite the exit of Circuit City as a competitor, Best Buy is losing marketing share. Its stock has lost 40 percent of its worth. Analysts give it a rating of B-.
Forbes’ biggest complaint is with the shopping experience at Best Buy. Clerks are unhelpful. Returns are limited. The in-store pick up of merchandise ordered over the web doesn’t always work smoothly.
Contrast this to the Amazon experience:
“Amazon lives and breathes the customer’s point-of-view. It completely engineers its business practices, its systems, and its people to support it. When they make a mistake, they admit it and they fix it. Immediately…It’s not just Amazon’s prices that are better, in other words. Its customer service is superior in every way… Phone support is instant, responsive, and knowledgeable. Returns are simple…”
The article is an excellent cautionary tale for every retailer. In a nutshell, the blog states that consumers want to shop on the web, so brick and mortar stores must find a way to include the web in the service they offer, and design their services around it.
Easier said than done…