Boston, MA 06\/04\/2014 (wallstreetpr) \u2013 The intensive competition from online stores saw Best Buy Co Inc (NYSE:BBY)<\/b> suffer sales decline in 1Q2014. Although the consumer electronic retailer anticipates continued fall in sales in 2Q and 3Q, it expects 4Q to show improvement in its top-line. However, before then, Best Buy has a formula that it believes will support stronger bottom-line amid weak sales.<\/p>\n
The key formula that the retailer has taken up is cost-cutting. In making internal cost and expenses improvements, Best Buy is not only able to price its merchandise competitively to ward off the impact of online stores, but cost-cutting also enables the company to makes big financial savings. The money saved through cost-cutting can be redeployed into the business to improve performance through strategic investments or returned to shareholders in the form of hiked dividends and shares repurchase.<\/p>\n
In the recent times, the retailer has taken aim at its store management where it is reducing management positions to trim operating expenses. Reduction of store numbers is also a strategy that appears to be paying off for Best Buy Co Inc (NYSE:BBY).<\/p>\n
In addition to cost-cutting, the retailer is also revamping its merchandise. Introduction of new products with higher profit margin is supporting the company\u2019s bottom-line campaign. Additionally, the consumer electronic retailer is also investing in employee training. Training employees enhances customer experience especially where services and advice are required.<\/p>\n
Retail competition<\/b><\/p>\n
Best Buy Co Inc (NYSE:BBY), like most other traditional retailers today, is facing competition from e-commerce and discounters such as Amazon.com Inc (NASDAQ:AMZN). In the competitive environment, BBY, under CEO Hubert Joly, not only seeks innovating ways to drive up sales, but is also pursuing efficiency aggressively so that investors can have a good reason to stick with the company even in challenging times such as these ones.<\/p>\n
Overcoming market challenges <\/b><\/p>\n
Although customers held off spending in 1Q in anticipation of new smartphone and tablet launches in the fall, Best Buy Co Inc (NYSE:BBY) managed post encouraging earnings in the quarter. It earned a profit of $1.31 per share, better than a loss of $0.24 per share in the same quarter last year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/04\/2014 (wallstreetpr) \u2013 The intensive competition from online stores saw Best Buy Co Inc (NYSE:BBY) suffer sales decline in 1Q2014. Although the consumer […]<\/p>\n","protected":false},"author":3,"featured_media":24642,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[2782,1249],"stock_ticker":[],"class_list":["post-24638","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-best-buy-co-inc-nysebby","tag-nysebby","entry"],"acf":[],"yoast_head":"\n