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Best Buy's new chief is selling from Day 1,[url=http://monclerjackendeutschland.albirank.net/][b]Moncler Jacken Günstig online Deutschland Moncler Jacke Herren Outlet Shop[/b][/url]
Best to buy CEO Hubert Joly's tenure in the company is less than a week old. But the 52-year-old Frenchman is already pooh-poohing the two most commonly held beliefs about what ails the struggling consumer electronics retailer.
Showrooming -- the concept of consumers viewing products in a store simply to buy them cheaper online -- is a myth, he says. "If there is a lot of showrooming, I don't think we would have $50 billion in revenue. We must have a minimum of a few people buying within our stores."
"Our market share is stable," he continued. "Of course, Apple and Amazon have gained share in electronic devices recently. It's the smaller and independent guys that have gone away."
Best to buy hired Joly, who previously led hospitality and travel giant Carlson, to change Brian Dunn,[url=http://peutereyjacketsuppliers.webmium.com/][b]Peuterey Jacket sale[/b][/url], who resigned amid allegations of an improper relationship with a female employee. Joly orchestrated turnarounds at Carlson and Vivendi's gaming business, a streak he hopes to carry on at Best to buy.
Donning a blue shirt and "CEO in Training" badge while learning the ropes in the Best Buy store in St. Cloud, Joly seemed eager to show off his skills as a salesman in additional ways than one.
Like a temporary store employee, he tried to sell a reporter a blender and widescreen television. As CEO of a Fortune 50 company, Joly suggested Best to buy continues to have plenty of room to develop.
"I'd like to adjust our say/do ratio," Joly said. "We should say less and do more."
For instance,[url=http://woolrichdeutschlandarcticparka.albirank.net/][b]Woolrich Parka women[/b][/url], Joly said Best to buy could sell more small appliances and expand into home security through its Geek Squad unit. The company also has discussed opening an app store like Apple and ways to offer more digital content like movies, music and television shows.
"I pay Comcast $120 per month for cable," Joly said. "That's lots of money. How can we participate in that?"
Joly also cited the growth of Best Buy Mobile. mobile market, a feat Amazon can't match, Joly said.
Investors and analysts argue Best to buy needs to dramatically reinvent itself. Sales at stores open not less than annually have fallen two of the past three years weight loss shoppers flock to the net to buy televisions and computers, the heart of Best Buy's business. At $3 billion, Best Buy's online sales make up just 3 percent of their annual sales, a number even Joly admits might be higher.
"People are changing how they are purchasing things," said Jonathan Gaw,[url=http://monclerjacketsformenssale.albirank.net/][b]http://monclerjacketsformenssale.albirank.net/[/b][/url], an analyst with IDC. "Best Buy isn't well-suited to take benefit of these buying habits."
Joly bills himself as a turnaround specialist who takes decisive action. His first priority is to certainly not craft a long-term strategy but to "stop the bleeding." That doesn't mean slashing costs or closing stores. Actually, Joly would prefer to not turn off stores but rather squeeze more sales from them.
"I'm not really a big fan of shrinking the company," Joly said. "Most of our stores have long-term leases, and then we should maximize what you can do using the space."
Joly's aversion to downsizing, together with his beliefs on showrooming and Amazon, put him directly at odds with not only Wall Street but the man he succeeded: G. "Mike" Mikan.
"Ending [showrooming] is a main concern for our team," Mikan, a board member who served as interim CEO, told investors during the annual shareholders' meeting in June. He also stressed the significance of becoming smaller and smaller.
"We're also going to make some tough decisions about shrinking the company's physical footprint," Mikan said.
A resource near to Best Buy told the Star Tribune before Joly's hiring the organization will soon announce plans to reduce its retail space by a minimum of A million sq ft, mostly by shrinking stores but additionally several closings.
Laura Kennedy, an analyst with Kantar Retail, a consulting firm outside of Boston,[url=http://wheretobuyrogerviviershoes.webmium.com/][b]where to buy roger vivier shoes buy roger vivier shoes online[/b][/url], said she found Joly's remarks, especially on showrooming, somewhat puzzling.
"I don't believe he's right," Kennedy said. "I think there's plenty of evidence of people doing that."
Said Gaw, the IDC analyst: "Where does he think the Internet sales are originating from? The consumer electronics pie has not been getting any bigger."
Kennedy wonders if Joly intended his remarks for Richard Schulze. Best Buy's founder and largest investor is attempting to buy back the organization for around $9 billion and has recruited former CEO Brad Anderson and former chief operating officer Al Lenzmeier for everyone on his management team.
The Star Tribune previously reported that Joly, who is near to Anderson,[url=http://woolrichdeutschlandarcticparka.albirank.net/][b]woolrich deutschland women online shop Woolrich Parka Günstig outlet[/b][/url], would likely stay on as CEO should Schulze succeed in taking Best Buy private. A source close to the situation,[url=http://woolrichoutletitalia.albirank.net/][b]Woolrich Giacche Outlet online Italia Woolrich Piumini Vendita italy[/b][/url], however,[url=http://rogerviviershoesshoponline.webmium.com/][b]http://rogerviviershoesshoponline.webmium.com/[/b][/url], said Schulze has rebuffed Joly's effort to contact him.
Schulze has yet to reveal his plan for revitalizing Best Buy. But Schulze and Anderson's history at Best Buy suggests both men, like Joly, are loath to close stores as well as want to focus on sales growth.
At the conclusion of his interview using the Star Tribune, Joly said he desired to directly address the Schulze matter.
"It's very odd for an organization to be at odds with its founder,[url=http://peutereyjacketsuppliers.webmium.com/][b]peuterey down jacket[/b][/url]," Joly said. "Dick may be the founder of this unique company. I have a lot of respect for him,[url=http://peutereyjacketsuppliers.webmium.com/][b]http://peutereyjacketsuppliers.webmium.com/[/b][/url], though I've never met him. He's also the company's largest shareholder.
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