Victim Of The Internet

The electronics retailer, Best Buy, missed badly and I believe the disappointments will likely continue into the future. As more people become comfortable shopping online it makes little sense to shop at a brick and mortar electronics retailer. There is simply no way for Best Buy to compete with online merchants who have little overhead and sell for razor thin margins. I believe Best Buy is a company in secular decline and while it may look like a value, I believe it is a value trap.

5 comments:

Lars said...

Best buy is not alone. Many retail outlets are hurting as internet sales impact their bottom line. This phenom will (is) also impact media companies and may even affect college and universities as tuitions continue to jump.
The next generation could become electronically "cocooned".
Have you watched how many people spend hours texting as if in a trance?

Tsachy Mishal said...

I was on the NYC subway last week and it feels like being on a train with 100's of zombies. It seems nobody sees one another and everyone is typing away at an electronic device. Very few newspapers.

nicasurfer said...

How should this affect Simon?spg

Tsachy Mishal said...

It will make physical retail locations less valuable.

Anonymous said...

I think we are extreme not sure whether market pullback or not...but something not right now..lets wait and see

http://stockcharts.com/h-sc/ui?s=$CPC&p=D&yr=2&mn=0&dy=0&id=p47931322363