A tale of two big-box retailers: After bearing the brunt of the Amazon Effect, Conn's (CONN...

A tale of two big-box retailers: After bearing the brunt of the Amazon Effect, Conn's (CONN +1.2%) and Best Buy (BBY -0.8%) took different approaches to their transformation. Conn's decided to move toward a focus on selling furniture, refrigerators, and other higher-margin items while Best Buy starting pumping its services and mobile business. Over the last six months, it's been a period of falling same-store sales at Best Buy while Conn's has managed to make gains. Same thing with share price: BBY -20.3% vs. CONN +43%.

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Comments (4)
  • Dio73
    , contributor
    Comments (7) | Send Message
    Is there a reason a 6 month period was used instead of the critical 3 month holiday period? Taking into account that BBY did not have the leadership team in place until late Nov it could be argued the new strategy under measure was not even in place.


    An article could just as easily be written to state that BBY stock is up 33% since the week before Black Friday where where Conns is only up 6.8% in the same period (11/20 forward).


    I am personally interested in how both strategies work out, but appreciate a view that considers where both companies are at in the timeline.
    7 Feb 2013, 12:45 PM Reply Like
  • benitus
    , contributor
    Comments (3300) | Send Message
    BBY deserve to collapse for their refusal to expand their inventory and make better use of their real estate, whilst CONN deserve their success for doing what BBY has failed to do. The margins for electronics and consumer items are too thin for big-stores to compete successfully with online retailers without innovation.
    7 Feb 2013, 02:17 PM Reply Like
  • Tom Doyle
    , contributor
    Comments (8) | Send Message
    conn is a regional operator that does $1 billion in annual sales. BBY is national chain doing $40 billion of domestic sales. A better comparison, if available would be bby's sales in conns markets.


    The two chains sell electronics, but are not really comparables.
    7 Feb 2013, 02:30 PM Reply Like
  • ML610
    , contributor
    Comments (118) | Send Message
    How meaningful are same store sales anyway? We don't even know what's in it (i.e; most companies don't break out the e-comm component). Also, with the increasing number of bby mobile stores, doesn't that further cloud the sss number?
    9 Feb 2013, 10:12 AM Reply Like
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