As news of Brian Dunn stepping down as CEO of Best Buy spreads across the Interwebs, many people are asking, “What is next for Best Buy?” Is Best Buy on the same crash course that sank Circuit City in 2009?
I am sure anyone who has been in a Best Buy lately has noticed that the computer section looks much different that it did just two years ago. The desktop section is as easy to miss as the alarm clock section and the laptop selection is about as underwhelming as Lamar Odom’s performance with the Dallas Maverick’s. However, the tablets are spreading like the weeds in my front yard and their phone sales are so impressive that Best Buy has “Best Buy Mobile” stores popping up in malls.
Obviously, a reorganization of the company and it’s business model are about the only way that Best Buy can make sure they stay relevant for the next decade plus.
There is one retailer who has recently had to do the same and can offer a perfect example of how to adapt to 2012 and reignite their brand.
JCPenney’s took a huge leap of faith earlier this year to revamp their pricing and their product. Although they are also in the midst of layoffs and an organization restructuring, they are no doubt setting themselves up for long-term success. Sure they might be having to layoff a few thousand people, but in the big picture, a few thousand is better than all 150 thousand plus employees if they had continued failing to adapt to today’s environment.
Does Best Buy need to copy JCPenney’s to a tee? Absolutely not. However, Best Buy can certainly look to JCPenney’s as a great example of how to adapt and thrive.
I love JCPenney’s new layout. I used to go in and scavenge for the sale racks once every few months. Now I find myself in there twice a month buying a few things. Not only has their pricing model changed, but I have also seen an improvement in the quality of their products.
According to Business Insider, “JCPenney’s New model is already being copied around the industry.” No surprise there considering it was a stroke of genius, although a risky one. Props to their leadership for being innovators and leading the way.
If you are listening Best Buy, please make an effort to be the JCP of the tech retail world.