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Listen carefully to best buy ceos take on employee turnover rate. Over two decades of brand presence, with at least one decade of extremely strong brand recognition within the us offers consumers access to functional, physical demonstration models of electronics and accessories sprawling size of most of the companys retail stores entails very high overhead operation costs, thanks to real estate and employees cannot offer most products at price points that compete with online retailers, largely because of overhead operations costs cannot feasibly stock stores with the sheer variety of products available in online retailers warehouses biggest advantages (in-person salesservice force, in-person access to products) are the most expensive elements of the companys overall business strategy government imposition of state and local sales taxes onto items sold by online retailers presents opportunity to reclaim market share (because in some cases, advantages of buying online are eliminated) before online retailers have a chance to respond with added value size and spread of workforce uniquely poises best buy to venture into online retail, while satiating consumer demands for hands on experiences by operating smaller showroom storefronts said storefronts can also serve to eliminate the gap between the customer and customer servicereturns departments that most online retailers face threats thanks to lower overhead costs, online retailers can probably offer products at a lower cost even in spite of added sales taxes online retailers are poised to, and are experimenting with, offer(ing) same-day delivery via courier, and pre-designated item pick-up locations if analysts comments and stock prices are any indicator, consumer and investor confidence in the brick and mortar retail model is tenuous consumers tendency to engage in showrooming behavior is essentially impossible to circumvent without compromising on profit marginsĀ  though best buys sales force is one of the primary aspects of the companys model that sets it apart from online retailers, it is also one of the companys biggest disadvantages



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