When Best Buy’s CEO was forced out of that post for having an inappropriate relationship with a female employee, the company’s board of directors put some of the blame on Schulze for not reporting the relationship. One consultant tells MPR Schulze wants to bounce back from that disrespect by buying the company and taking it private. That makes Schulze and the board adversaries in a tug of war, with Best Buy’s stock price serving as the rope.
Rumors that a Schulze buyout is imminent — or fading — have fueled spasms in Best Buy’s stock price for a week. Monday it was up more than ten percent in the morning only to lose half of that gain in the afternoon as the rumor mill reversed course.
While the battle of the board room is playing out, the company is also trying to reverse its fortunes on the sales floor. Or, as it’s come to be called, the showroom. The Star Tribune reports the phenomenon of “showrooming” may be more hype than reality. Nevertheless, Best Buy is rolling out a strategy to confront the issue head on by posting their competitors prices in stores.
Speaking of prices, PC World reports Best Buy is undercutting its competitors on Apple products, particularly the MacBook Pro. But since the sale price applies only to in-store purchases, the trick may finding a store that has them in stock.