Is it all-or-nothing for Best Buy (BBY +2%) with the company either going private or going...

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dacama1 Comments (104)
 
what the heck does that factoid have to do with anything?
23 Jan, 10:00 AM Reply Like

Tony Petroski Comments (6373)
 
Fair point Mr. dacama1.

In business school we learned that a retail jewelry store could gross 5 million a month with a staff of three while a grocery store grosses 5 million with a staff of 47.

Here's the real factoid that bites: The Energy Department has 18,000 employees and doesn't produce anything.
23 Jan, 10:08 AM Reply Like

Valley Outsider Comments (10)
 
Have fun with the meltdown at the nuclear plant near your house.
23 Jan, 10:34 AM Reply Like

benitus Comments (785)
 
Hear, hear, Mr Tony. Well-said. Nonetheless, BBY knows the drill and has been shutting stores with weak sales and cutting back on both retail estate and staff, even though it's badly over-staffed, which conversely, makes consumers like me happy, as I get my questions answered whenever I step into BBY. So, it's no wonder that its outlook has improved but can it be sustained? I doubt very much, unless they can beat online vendors at their game.
24 Jan, 07:58 AM Reply Like

TySchuh Comments (13)
 
I think it's a valid fact to point out. In addition to market cap we know or should know their comparable margins and it also implies to add in BBY's operational strategy which is very labor intensive which creates obvious hurdles to achieving higher margins and profitability.
23 Jan, 10:18 AM Reply Like

Ted Barac Comments (380)
 
Go private or go bankrupt? Actually, going private substantially increases BBY's bankruptcy risks, as they will have the same underlying business with substantially more debt and debt service costs (and the resultant weak balance sheet and financial position). Of course, that would be a problem for the new shareholders.
23 Jan, 10:26 AM Reply Like

benitus Comments (785)
 
Definitely, Ted. Going private will increase bankruptcy risks, especially as their figures can be tweaked without transparency.
24 Jan, 08:00 AM Reply Like

swhmetta@gmail.com Comment (1)
 
I was just hired on as a Manager in a store. I start Feb 1st. Should I be concerned? I also had a job working for the State. It's a 1/3 of the salary that Best Buy offers. It might be more secure. Although, they now call State positions "unclassified", meaning your're "at will" like the rest of the world. Thus, you're not protected.
23 Jan, 12:02 PM Reply Like

benitus Comments (785)
 
well, swhetta...you need to produce results better than the chain, to ensure your longevity at BBY and improve your rewards. There's nothing to worry, if you work hard and produce results. Watch out for the slackers, though, as BBY is famous for harboring too much deadweight. Don't be afraid to hire and fire. It will put the rest on their toes and pull up their socks. Too much buddying in the past, so bad habits will die hard, unless you introduce shock therapy. It will ensure your own survival, if you can get more out of your staff, instead of letting them while away their time and collect their pay-checks without pulling their weight. That was how the demise of BBY began, when they hired too much deadweight (too confident of future prospects, when volume increased) and costs outweighed revenue, so profit didn't stand a chance.
24 Jan, 08:07 AM Reply Like

abe11 Comment (1)
 
in addition to all the jobs bby recently cut, Futureshop(owned by bby in canada) just laid off ~780 employees...good sign? or bad sign?
23 Jan, 03:59 PM Reply Like