The Gradual Death of the Brick and Mortar Tech Store
Cutting_Crew writes "As we all know brick and mortar stores have been closing left and right recently. We had CompUSA, Borders and Circuit City all close their doors within the last 4 years. According to an article on Forbes.com, it is spelled out pretty clearly why Best Buy is next in line to shut its doors for good. Some of the reasons highlighted include a 40% drop is Best Buy stock in 2011, lack of vision regarding their online services, management too concerned with store sales instead of margins and blatant disregard for quality customer service."
They have no concept of the competition that Amazon represents. They think in store purchases will keep them alive. They need to:
1. Fire half the staff, and only hire professional sales people (Not 30 seventeen year olds)
2. Reduce the store size by half or more.
3. Reduce prices by having less selection but enjoy the bulk purchase price point.
4. Stop high pressure pushing of accessories and service plans on people.
5. Work with vendors to have exclusive items made for them not found online (like a white or pink dyson)
Still doomed by their horrible reputation.
Radio Shack these days is a shadow of it's former self. I went there with my dad as a kid, and remember shelves full of electrical and radio crap that I couldn't even comprehend. I went in there for the first time in ages about 3 years ago.. holy crap. It looked more like an AT&T store than the Radio Shack of old. People were lined up to pay their phone bills, and the walls were lined with cell phones and MP3 players and whatnot. Only in the back corner were any sort of electrical components, and nobody could really help me find what I was looking for. It's almost as if someone bought the Radio Shack name, and slapped it on a completely different store...
The sole reason to go to a BestBuy is "I need this item today." That's about it.
They also tend to have stuff in stock, and for many items (printers, monitors) working items you can examine. Why would you go to a store when you could order online for much less? Three good reasons
1) You want it now
2) Shipping cost overwhelms the price difference
3) You'd like to take a look at it before buying it
But most brick and mortar retailers mess up _all three_. They won't carry much and what they carry they won't keep in stock, so you have a good chance of not finding what you want. For things where shipping cost is significant (e.g. cables), they'll carry only ridiculously-priced brands so they're STILL more expensive than ordering online + shipping (even for one lousy cable). And if they have any samples out, they're often obviously broken, and usually not actually working.
What Brick-and-mortar store can hope to compete with the internet for commodity-level components? It's not even fair to hope they would. I mean, cmon - Best Buy stocks even-further-overpriced Monster Cables as their entry-level cable. I don't fault the Shack for seeking higher rungs on the value chain. And I'm hardly a fan of either the Shack ("You have questions, we have blank stares") or Best Buy ("Best means most expensive!"). But, I do fear for the complete loss of generalist tech stores. A book is a book is a book, but when deciding between tablets or notebook PCs, or the like, actual interaction with the device answers a gazillion questions that don't seem to have answers on websites.
Returned Peace Corps IT Volunteer