The big-box electronics chain was suffering dwindling sales and profits due in good part to "showrooming," when shoppers would come in to a Best Buy store to check out televisions, computers and other items in person, and then buy them at cheaper prices at Amazon or elsewhere online.
Best Buy also was struggling with executive turmoil and facing a buyout threat from a major stockholder. The chain in 2012 named a new chief executive, Hubert Joly, but the Frenchman came from the hospitality field and had no retail experience.
His appointment stunned analysts, with one saying that fixing Best Buy was “a herculean task even for an accomplished retail executive.”
But Joly has proved up to the task so far. Under his turnaround plan, Best Buy has rebounded to remain one major U.S. retailer that’s holding its own in the face of Amazon’s relentless growth and the conventional retail industry’s slump.
Best Buy “came out the other side successfully to defend itself against Amazon,” said Peter Keith, an analyst with the investment firm Piper Jaffray & Co.
Timely, incisive articles delivered directly to your inbox.