News
Best Buy prepares for UK assault
Ben Furfie May 8 2008, 10:14am
Comments (8)
Full size retail stores set to roll out in 2009 after �1.1bn investment in The Carphone Warehouse
Best Buy is set for a massive expansion into the UK and the rest of Europe next year, following a deal with The Carphone Warehouse that will see it acquire 50 per cent of its European and US retail interests for £1.1 billion.
A spokesperson for The Carphone Warehouse confirmed to PC Retail that the UK would see full scale Best Buy stores opening in 2009.
The move will be spearheaded by a roll out of the Best Buy brand in Europe according to the firm's international CEO and chief information officer Bob Willett.
"We've been successful with our business model and aspire to apply that model to one of the largest markets in the world," Willett said. He was, however, keen to stress that the firm would not be diving in at the deep-end when it came to expanding into Europe.
"We must do so carefully and with humility. We have seen great companies fail because they thought they could simply export their current business model to new geographies.
"We intend to plan our European entry strategy carefully, focused on customer needs, and with on-the-ground help from our trusted partner, The Carphone Warehouse," he added.
It was a point echoed by The Carphone Warehouse's CEO Charles Dunstone: "Best Buy brings demonstrable expertise in merchandising, sourcing and customer service: that should help us accelerate the evolution of our business.
"We bring local knowledge, infrastructure and the expertise in linking services to product," added Dunstone. "That should help [Best Buy] push into larger format consumer electronics retailing in Europe."
The deal will also see Best Buy move into small format retailing in the US. The firm is planning on bringing The Carphone Warehouse's significant expertise in that format to its core US operations. The move is likely to be in response to rival Circuit City's launch of smaller retail format The City.
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Comments
“Best Buy... In the UK!?”
Posted by: Retailer X - May 8, 10:23am
Wow. Simply wow.
Bet DSGi are going to hitting panic mode when they read this. I know I am. This really is going to shake up the UK consumer electronics industry.
“Re: Best Buy... In the UK!?”
Posted by: Norman-Ellis - May 8, 11:18am
Is there room for another megastore in the UK? I don't think so.
If they are successful it will be at the expense of others. I guess PC World will be getting hot under the collar.
It could well be the end of consumer sales, for all us indies unless we concentrate on Business and quality services the future is very bleak.
Norman
“Re: Best Buy... In the UK!?”
Posted by: andrew - May 8, 12:53pm
Let's just hope they bring the same great prices they offer in America or else what is the point of them coming over!
I'm fed up with being ripped off in this country!
“Re: Best Buy... In the UK!?”
Posted by: John Longley - May 8, 1:28pm
Don't cha just luuurve it when the real big guys stomp over from our USoftheA cousin country.
I just had a look at their website, and apart from their predicatable banging about being able to pre-order ipods, they are also banging on about sub399dollar laptops. So, everyone in the dear ole blighty who can flog a laptop for less than 400 nicker need not worry too much. (unless you'd like to match the �98 opening ofer)
Bestbuy have stores in almost every village of every township of every city of every state, apparently.
Talk about High Noon, is this a shoot out between Bestbuy and the 59th state PCWorld or what????
Okay, enough of the cryptic talk. Bestbuy is an American company with branches scattered throughout America. PC World is an English/British (?) company with branches scattered throughout the world. PCWorld is still smallfry compared with BestBuy.
All of a sudden, PCWorld is looking like it is actually an indie.
Meanwhile, the true indies of the world who serve a 20 mile radius, do we really need to squabble between ourselves over the big guys????
Okay, so there goes my tuppenorth of opinion. Meanwhile, I'll crawl back under my stone and continue selling 1 system per month for over a grand and I'll continue buying cars for a couple of hundred and flogging em on for 500 quid. Each.
Margins ain't what they used to be.
“Re: Best Buy... In the UK!?”
Posted by: Rob-tdrcomputers.com - May 8, 3:55pm
I remember the dreaded onslaught of PC World, we would close our doors, shut up shop and just do repairs. That just has not happened, we are still here doing very well thank you. PC world and other big stores like them do more for our business than we can do ourselves, as they off such poor customer service, not super prices as everyone thinks they do and not understanding the customers needs. Customers love speaking to the same person everytime, free technical support and the free coffee they get with every fun filled visit to our small store. Long may the stack em high and flog em cheap brigade continue to fight for the bottom end no margin customer!
“Another Mega Store ....wahey”
Posted by: Indie Retailer - May 8, 4:15pm
Another Mega Super Selling Multiple..... great for us indies....no really i mean it.... Look at the service that Fleece Me World offer to their customers..... What about Stresco's..... Waldi's???? .....we could go on.....
Do we as independent retailers offer a repair service...i for one do..... do i get the Machines in from the multiples ..... oh yes....
No little profits selling machines for �200.00 but full on profit for repairs.... Labour (100%) + Parts..
BRING ON THE MULTINATIONAL COMPANIES THAT DON'T REALLY GIVE A DAMN ABOUT CUSTOMER SERVICE..... I will give my customers all the service they need
“Re: Another Mega Store ....wahey”
Posted by: Brett Stocks - May 9, 9:09am
Yes, you could argue that but the reality is something that scared me when I went to the US on a fact finding mission (well; that's what I said to pay for it via my company anyway).
Best Buy isn't your usual PC World. It doesn't turn away employees with genuine technical knowledge. In fact, it encourages them. I was speaking to one guy who I know works for the company and he said that the firm's sales staff earn commission, not through selling insurance, but by upselling to items with a higher price tag and margin because, and here's the killer, they provide a better 'solution to the customer's problem'.
Sounds a lot like the service we provide over here.
“Re: Another Mega Store ....wahey”
Posted by: Typical British Thick Consumer - May 12, 11:47am
Aah, but does it pay employees with genuine technical knowledge a genuine wage, or does it pay 18% over the minumum wage?