[Armageddon]

http://news.yahoo.com/s/ap/20081216/ap_ ... s_best_buy


MINNEAPOLIS – Best Buy Co. Inc. , the nation's biggest consumer electronics retailer, said Tuesday that its third-quarter profit sank 77 percent as it faced dramatic changes in consumer spending.

[ROCKMAN]

Armi -- that may be the most bone chilling headline I've seen yet. In my part of the world Best Buy is THE center of discretionary spending. Folks go to WalMart for what they need...Best Buy for what they want and can afford. In the 4Q it will be interesting to see if the Christmas spirit helps them to rebound or is just one more nail in the coffin.

[DJSNOLA]

I think you nailed it Rockman. If Best Buy is hurting this bad, any other company that falls on the discretionary side is in a world of trouble. No wonder Circuit City is in bankruptcy. Seriously though, can a store even make money with a good Christmas, if they lost that many sales in the 3rd quarter. Black Friday got its moniker because it was the day that many stores got out of the red for the year. Im thinking this year there will be no such day for many businesses!

[Armageddon]

I read on another forum they had over 1 million applicants for the 25,000 season positions, and most were college grads . This is a very telling story. And I agree with you ROC, Best Buy is the epitome of discretionary spending. As I have thought all along, once the ATM house is gone, the economy will follow. Probably a 12-24 month lag. Where is the consumer going to find cash now ?

[DJSNOLA]

I think we will see shopping coupons like Japan is doing soon! That way the money you receive must get spent and cant be saved.

[ROCKMAN]

But the always a silver lining if you look close enough armi: now maybe I can get that Wii at BB before the sell out the next shipment. Good for me...unfortunately not so much for the rest of the folks .

[Armageddon]

But the always a silver lining if you look close enough armi: now maybe I can get that Wii at BB before the sell out the next shipment. Good for me...unfortunately not so much for the rest of the folks .

Good Luck. I luckily was at CC last year when they were putting them on the shelve. Me and the wife were like, do you want one ? One year later, our 2 daughters 13,11 still play it. They love the mario cart and bowling the most. My wife got them the guitar hero for christmas this year. If you get one, they have a special deal where you get an addional remote that comes with the sports package. And, she bought this thing rechargable battery thing too. It's the only way to go. Wii's rule.

[jedinvest]

BB still made a profit, so I don't think they are going out of business. Just that there are a lot of sales and discounts out there. Great time to shop. Buy those trinkets while they are still available. Except for appliances, I have to agree that BB caters to the discretionary spenders. And with less granite countertops being installed, I guess the appliance business is not doing so well either.

First-tier businesses will keep going. Second-tier businesses will have a hard time keeping in the black and/or getting credit.

Detroit must be a second-tier business relative to the world leaders in autos.

[Sixstrings]

But the always a silver lining if you look close enough armi: now maybe I can get that Wii at BB before the sell out the next shipment.

Does the fact that I just don't get the "Wii" make me officially Old?

I know, I know it's popular.. I just don't get it. Standing in front of the tv, waving a controler. Ok, why do you need a game system to do this?

On the topic of gaming.. it appears it's a bright spot in the economy. The more people want to escape from life, and the less money they have to do real things, the more they'll game.

[Snowrunner]

I know, I know it's popular.. I just don't get it. Standing in front of the tv, waving a controler. Ok, why do you need a game system to do this?

Because if you do that without a game system you are usually in place that provides patted rooms for your comfort

[Armageddon]

I know, I know it's popular.. I just don't get it. Standing in front of the tv, waving a controler. Ok, why do you need a game system to do this?

Because if you do that without a game system you are usually in place that provides patted rooms for your comfort

He probably means why not actually go bowling or play real tennis.

[smallpoxgirl]

Does the fact that I just don't get the "Wii" make me officially Old?

If so, I'm right there with you.

I actually think the OP of this thread is encouraging news. If they're still managing to turn any profit in this market, that's quite a positive sign IMHO.

[emersonbiggins]

Does the fact that I just don't get the "Wii" make me officially Old?

If so, I'm right there with you.

I actually think the OP of this thread is encouraging news. If they're still managing to turn any profit in this market, that's quite a positive sign IMHO.

3Q numbers might have still been [positively] biased by the $150bn stimulus package, which only fully disbursed by the end of the 3Q08, I believe. The impact of the stimulus cannot be overstated, as it was roughly equal in size to three months' worth of U.S. mortgage equity withdrawals at the height of the housing bubble.

[vision-master]

Maybe I can pick up another sweet LCD TV and surround sound system in the belly-up-sale.

[ki11ercane]

http://news.yahoo.com/s/ap/20081216/ap_on_bi_ge/earns_best_buy


MINNEAPOLIS – Best Buy Co. Inc. , the nation's biggest consumer electronics retailer, said Tuesday that its third-quarter profit sank 77 percent as it faced dramatic changes in consumer spending.

Not trying to burst your bubble, but this is not a deal breaker for Best Buy, or any company.

Profit is defined as the "cream" atop the crust. This is the "extra" after all the bills have been paid. Right now, their cream is 33% rather than 100%, and at least they are still making cream.

I am self employed as well, and at this time of year, my profits for my company drop "100%," but I am entering my 10th year in business. My business has survived just fine on 6 months of feast and 6 months of famine. It's not the end of the world for a business to have a drop in "profit." When they can no longer meet their bills and suppliers, ie. there is no longer any cream left atop the crust, then illiquidity sets in, then insolvency, then bankruptcy. It's like cancer, it kills in stages. The trick is to stay out of or not pass stage one.

[TWilliam]

I just don't get it. Standing in front of the tv, waving a controler. Ok, why do you need a game system to do this?

It's largely a marketing ploy designed to appease the increasingly vocal segment of parents who frown on the sedentary aspect of excessive gaming. "Look! We're giving them exercise while they play!"

[seldom_seen]

One of their problems is they aren't a best buy.

I have walked in to their store before just for the shock value of seeing how expensive their camera equipment is compared to what you can find online from reputable camera dealers.

[Minvaren]

One of their problems is they aren't a best buy.

I have walked in to their store before just for the shock value of seeing how expensive their camera equipment is compared to what you can find online from reputable camera dealers.

Bingo.

When I find a monitor cable 50% off BB prices at a "mom and pop" 1/3rd of a mile from Best Buy... Something is rotten in Denmark. All the money you save on the item on-sale is made up by the product warranty and overpriced peripherals that are required.

[InToWishin]

One of their problems is they aren't a best buy.

I have walked in to their store before just for the shock value of seeing how expensive their camera equipment is compared to what you can find online from reputable camera dealers.

Bingo.

When I find a monitor cable 50% off BB prices at a "mom and pop" 1/3rd of a mile from Best Buy... Something is rotten in Denmark. All the money you save on the item on-sale is made up by the product warranty and overpriced peripherals that are required.

Yeah but they will be a Best Buy soon if only for a short time.

Bankruptcy sales hurt business for other retailers

... Shoppers are waiting to make purchases, particularly when dealing with bankrupt retailers. They know that as the time nears for the doors to close forever, the markdown percentages increase. ...

Is this the new trickle down economy in action?

[hironegro]

But the always a silver lining if you look close enough armi: now maybe I can get that Wii at BB before the sell out the next shipment.

Does the fact that I just don't get the "Wii" make me officially Old?

I know, I know it's popular.. I just don't get it. Standing in front of the tv, waving a controler. Ok, why do you need a game system to do this?

On the topic of gaming.. it appears it's a bright spot in the economy. The more people want to escape from life, and the less money they have to do real things, the more they'll game.

There really isn't any public spaces anymore. Video games are the new public spaces for my generation.