Best Buy founder abruptly resigns

In what appears to be a case of getting out while the going's good, Best Buy chairman and founder Richard Schulze has abruptly resigned from the company, and now he's trying to figure out what to do with his 20.1% stake in the company. Schulze had been planning to resign on June 21st, and step down as director next year, after an investigation found that he was aware of former CEO Brian Dunn's 'inappropriate relationship' with a female employee.

Best Buy has been suffering from a slump in profits since last year, and announced the closure of 50 stores this year. The stock took another hit from Schulze's departure, despite his assurances that Best Buy has a future. Hopefully Mr. Schulze can unload some of that 20.1% stake before it slumps further.

“I continue to believe in Best Buy and its future,” Schulze said, noting that “There is an urgent need for Best Buy to reinvigorate growth by reconnecting with today's customers and building pathways to the next generation of consumers.” Well, that's certainly reassuring.

In the meantime, it looks like Best Buy could go the way of Circuit City sooner than later unless something drastic happens. Where will we get our cassette recorders then?

Source: MSNBC

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23 Comments

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If BB closes, where the hell am I going to go to get hands-on tests for products I'm going to buy, especially peripherals?

We still need retail stores for this reason, among others.

DAOWAce said,
If BB closes, where the hell am I going to go to get hands-on tests for products I'm going to buy, especially peripherals?

We still need retail stores for this reason, among others.

Frys electronics.

SirEvan said,

Frys electronics.

I've even written letters to them trying to get them to come to Colorado and wipe Best Buy and Microcenter off the face of the country.

Worked at Best Buy than I was let go after three years and I never miss working there, too many stupid customers who you can never satisfy and do not know anything about Electronics. I love dealing with phone when I was there and Nintendo Wii just came out and some hack complaining how it is a Sunday and it is not right to put a Wii on a Church day or my favorite do have W-2s, and all my time favorite when you are busy helping out another customer they get ****ed telling them one second let me help this customer out and the ****ed customer says "**** you I will go to Target" and I say "do not forget to buy some deodorant" LOL.

Seriously, do customers really think that making a threat going to a competitor to a floor employee they would care? Best Buy cold have been a better place to work if they hired smart employees and customers learned to read the policies on the back of the receipts about warranties and return policy.

As for the CEO Brian Dunn, this is no shock at all the stuff that is coming out about him a lot bs I have seen happening while working at Best Buy.

TsMkLg068426 said,
Worked at Best Buy than I was let go after three years and I never miss working there, too many stupid customers who you can never satisfy and do not know anything about Electronics. I love dealing with phone when I was there and Nintendo Wii just came out and some hack complaining how it is a Sunday and it is not right to put a Wii on a Church day or my favorite do have W-2s, and all my time favorite when you are busy helping out another customer they get ****ed telling them one second let me help this customer out and the ****ed customer says "**** you I will go to Target" and I say "do not forget to buy some deodorant" LOL.

Seriously, do customers really think that making a threat going to a competitor to a floor employee they would care? Best Buy cold have been a better place to work if they hired smart employees and customers learned to read the policies on the back of the receipts about warranties and return policy.

As for the CEO Brian Dunn, this is no shock at all the stuff that is coming out about him a lot bs I have seen happening while working at Best Buy.

So... You worked there, were fired, and you wish they would hire smart employee's... hmmmmmm. Does no one else find the humor in those statements?

As far as customers go, the type of people who "Shop" at Best Buy and similar stores are NOT the educated customer types, they are the ignorant massess who need to have thier hand held and be reassured they the TV/Appliance/etc they are looking at is "right"; as such the employees who work in these stores NEED to be up on thier product knowledge AND also need to have the time and freedom to allow for helping customers. All too often though they are under trained or not trained at all on the product they are "Selling" and told they need to meet X qouta of "Upsells" (cables, installs, etc.. the "High Margin" products that make the store money).

When you go into a Best Buy and buy a PC and ONLY the PC you may have actually COST the story money, a lot of the items are sold at or below cost or with little to no markup. Then you factor in overhead: Employees, Taxes, Leases, Utilities, etc.. and you have a situation where individual stores CANT COMPETE WITH A NATIONWIDE WEB BASED RETAILER WHO SIMPLY SHIPS FROM A WAREHOUSE.

So your left with the following situation:
Customer who need educated staff to help them
Under paid under trained staff who aren't allowed to truly help
Stores with little to no profit margin who are unable to hire more staff or allot time to properly train their current staff

All of which is a recipe for long term failure. Trimming "Underperforming" stores is never a valid solution because it creates a negative "Brand" image, customers start to see and hear articles about store closings, they loose faith that Best Buy will still be in business, and the dominos just line up.....

You can qoute me on the following: 50 Stores lost this year will turn into a lot more come January 14th of next year. They will delay announcing further store closing until after the back to school and christmas seasons are over, but they already know now which stores they intend to trim.. someone somewhere is sitting on a list of stores they plan on closing.

Xionanx said,

So... You worked there, were fired, and you wish they would hire smart employee's... hmmmmmm. Does no one else find the humor in those statements?

Are you trying to say I am stupid? Because during the time I was let go other employees were randomly getting fired making up poor excuses because the location I was working at was not making budget. Only thing I find funny is that Best Buy was a ****ty place to work at and once I was fired I went back to College and got a better job, so yeah the only humor I see is your ignorance.

And as for me knowing about the products, I pretty much knew most of the products the only department I never bothered was with car sound systems because I do not know anything about it. And as for having the time and freedom imagine running the whole Media department yourself and a massive cut or a employee does not show up and you are telling me I should have put more time helping out customers? The irony of a typical Best Buy customer. Maybe the customer should put more time doing a research on a product and no one wants to hear about how another Best Buy location told a customer how supposedly there is only one of this items available such as a DVD where someone smart would know they will have no luck to be found. All the customers ever do is whine and complain because they think the rule about"Customers are always right" applies to everyone when that is entirely BS. Imagine if we always went with that idea, might as well give them items for free.

I wonder who helps out for online shoppers, lets see how that service goes in the future.

TsMkLg068426 said,
As for the CEO Brian Dunn, this is no shock at all the stuff that is coming out about him a lot bs I have seen happening while working at Best Buy.

Ooooooooooh! Details please!

Best Buy's prices are retarded. They need to bring the damn prices down so they can actually compete with online outlets.

Xilo said,
Best Buy's prices are retarded. They need to bring the damn prices down so they can actually compete with online outlets.

^this

When I walk into a Best Buy and see devices like an iPod Touch going for $50+ more than their normal price at walmart and the apple store, it makes me not want to get ANYTHING there.

People that actually buy from Best Buy every time they go in are well over 40 years old now. The younger generations are buying from Amazon or directly from iTunes because they have cheaper prices and in Amazon's case, free Prime shipping to college students.

max22 said,
I hope Best Buy dies. Just like Circuit City and Compusa did.

Why? No one is forcing you to shop there. If they go under a lot of people will be out of work.

max22 said,
I hope Best Buy dies. Just like Circuit City and Compusa did.

"I hope a bunch of people lose their jobs"
That's what you sound like.

contriver87 said,

Why? No one is forcing you to shop there.

You must not have heard of the BBP (Best Buy Police) then.

About the only thing I use BB for these days is "have to have it now" like a hard drive, cable etc. Other than that, it's a showroom, where you can touch & feel something, then get it online the next day, even with overnight charge, CHEAPER than you can get it from BB.

naap51stang said,
About the only thing I use BB for these days is "have to have it now" like a hard drive, cable etc. Other than that, it's a showroom, where you can touch & feel something, then get it online the next day, even with overnight charge, CHEAPER than you can get it from BB.

As stated below, I hope Best Buy dies also, but not because I want anyone to lose their jobs. Maybe Circuit City will come back to life then. Circuit City was 10 times the store Best Buy ever was here!

I generally prefer to spend my money locally and receive my product now, not 6-8 days later, so online shopping, although very convenient, is not how I prefer to shop.

perochan said,
digital purchase and online purchase is bring best buy type of stores down to its kneels....

I have been saying this for years. half their damn store is cds, dvd, and video games. These all will be gone in 5-10 years. BB is screwed. They were way to late to embrace digital. Kind of like Blockbuster.

I think it's a stretch right now to say they could go the way of Circuit City simply because they closed 50 stores out of like 1000. They are closing 50 and opening 50 in other countries so they aren't really losing any stores. I think he's leaving like this because they probably found some dirt on him too.

I worked at Circuit City when they closed and the problems Best Buy are having are nothing like what we had. When Best Buy loses money for 4 years straight and then closes more than 20% of their stores in one stroke, then that's when you need to worry.

They should seriously consider re-adapting, maybe taking online shopping at the next level with virtual tour of products or something. I'm sure they can figure out something with all their staff. It's either that or bye-bye.