Best Buy on Tuesday announced that CEO Brian Dunn under a “mutual agreement” with the company has agreed to step down as pressures continue to mount for the company because of online competition along with shareholders who are worried that Dunn is not taking the company in the right direction.
In the company’s statement Best Buy officials note:
“There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures,” and “There was mutual agreement that it was time for new leadership to address the challenges that face the company.”
The announcement comes less than a week after Best Buy announced plans to shudder 50 stores amid downward sloping sales. Many analysts believe customers are browsing products at Best Buy locations but then heading to Amazon where they can purchase those goods for less money, oftentimes with free 2-day shipping thanks to the Amazon Prime program. In many cases customers are paying less and no sales tax with Amazon which makes a big difference for high priced items such as flat screen TVs and computers, two of Best Buys corp products.
I have personally purchased Amazon items from my iPhone while standing in the middle of a Best Buy store.
Best Buy’s new plan of action is to close 50 stores and then open 100 U.S. Best Buy Mobile locations, stores that focus on Smartphone products for all major U.S. carriers. By the end of 2016 Best Buy plans to operate 600 to 800 Best Buy mobile stores.
Shares of Best Buy fell 3% in heavy volume trading on Tuesday.
Do you examine items at Best Buy and then head home to make the purchase on Amazon?