Best Buy Still on Top
Issue date: 2/18/08 Section: Business
Electronic company Best buy said on Friday Feb 15 that its annual fourth quart profits are expected to fall compared to fourth quarter profits from last year.
Despite this news, Best Buy continues to plan on expand in this upcoming year and is expected to open between 130 and 160 stores worldwide, which will include 20 to 25 stores in China alone.
The expansion is a risky one because it may either increase its market share in many underrepresented markets or help bring their main competitor, Circuit City closer to them.
They reported comparable sales were up 1.5 percent which is better than most of their competitors whose sales were down during the same period. This downtrend can be attributed to a weak January during which many retailers saw few consumers come into their stores. Best buy credits their profits to a strong Christmas shopping season.
All profits add up to $40.2 billion for the company as a whole. This makes one wonder that if the quality and segment leader is struggling, how poorly is everyone else below them doing.
Patrick Comer
Despite this news, Best Buy continues to plan on expand in this upcoming year and is expected to open between 130 and 160 stores worldwide, which will include 20 to 25 stores in China alone.
The expansion is a risky one because it may either increase its market share in many underrepresented markets or help bring their main competitor, Circuit City closer to them.
They reported comparable sales were up 1.5 percent which is better than most of their competitors whose sales were down during the same period. This downtrend can be attributed to a weak January during which many retailers saw few consumers come into their stores. Best buy credits their profits to a strong Christmas shopping season.
All profits add up to $40.2 billion for the company as a whole. This makes one wonder that if the quality and segment leader is struggling, how poorly is everyone else below them doing.
Patrick Comer
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