NPD Group: Best Buy Is Just Fine, Thank You

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NPD Group: Best Buy Is Just Fine, Thank You
By Swanni

Washington, D.C. (April 26, 2012) -- Despite the abrupt resignation of CEO Brian Dunn and a slew of recent disappointing financial reports, the NPD Group says Best Buy is in no danger of going out of business.

In fact, Stephen Baker, NPD's vice president of industry analysis, says the CE retailer's market share is growing and the company has simply been the victim of rapid change in the economy and the industry, reports Home Media Magazine.

“(Best Buy's) challenges today are not because they haven’t seen the change coming, or because they haven’t been preparing for it, but instead because of how dramatically and swiftly the changes happened over the past year,” Baker wrote yesterday in a blog.

After Best Buy this month reported a $1.7 billion loss and Dunn's resignation, many analysts predicted that the company will soon be overrun by online CE retailers and eventually forced to declare bankruptcy.

But Baker says the $1.7 billion loss can be attributed largely to a write down of overseas operations and Dunn's exit could be tied to a personnel matter. He adds that Best Buy is only facing what other retailers are facing today: fickle consumer behavior due to the slow economy. In Best Buy's case, consumers, worried about their job prospects, have been less likely to fork over their hard earned dollars for new flat-screen TVs and other gadgets.

What do you think? Offer your comments below!

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The NPD analyst, however, says Best Buy's market share actually rose one point in 2011; the market share was 31 percent, three times higher than any other CE retailer. BestBuy.com even added 1.5 percent in market share in TV sales last year.

“While there are challenges ahead, Best Buy remains the dominant retailer and in the best position to succeed in the coming years,” Baker writes, according to Home Media.

What do you think? Offer your comments below!

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

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