Best Buy CEO responds to critics after Forbes article predicts company's demise

The retailer's top executive says critics raise some valid points but that anyone questioning the validity of the business model is recklessly ignoring "overwhelming evidence to the contrary."

Best Buy CEO Brian Dunn is responding to the company's critics after Forbes magazine published a scathing first-person commentary predicting the retailer's demise.

Dunn says in his blog that critics raise some valid points. He says the company deserves the blame after it failed to ship some online orders in time for the holidays. And he says Best Buy must move faster to keep up with the times.

But he takes issue with anyone questioning the company's fundamental business model.

"This misguided perspective is especially troubling for me, because it blatantly and recklessly ignores overwhelming evidence to the contrary." Dunn says the Internet hasn't made physical stores irrelevant, and says Best Buy remains financially strong and profitable.

Earlier this week Forbes magazine published an article titled "Why Best Buy is going out of business ... gradually." The article, which slammed the retailer's customer service, oversize stores and online experience, soon went viral and jumped to Forbes' most-read list.

The problem, Forbes contributor Larry Downes writes, is simple: "Walk into one of the company’s retail locations or shop online. And try, really try, not to lose your temper."

Next Up


Best Buy CEO: 'Showrooming is one of the greatest falsehoods'

Best Buy's new top executive, Hubert Joly, tells the Star Tribune that he's "not a big fan of shrinking the company." He wants the Richfield-based electronics giant to maximize sales with its existing stores. One analyst was also a bit puzzled by Joly's comments about "showrooming." "I don't think he's right. I think there's plenty of evidence of people doing that," said Laura Kennedy.

Forbes contributor: Best Buy is going out of business, gradually

A contributor for Forbes says the retailer is going down. Larry Downes quotes numbers that show Best Buy losing market share and analysts who say the worst is yet to come. But the gist, Downes says, is simple: "Walk into one of the company’s retail locations or shop online. And try, really try, not to lose your temper."

Best Buy hires Carlson chief Joly as new CEO

Hubert Joly, the French-born businessman who was the first non-family member to run the Carlson Companies, is leaving to take the top job at Best Buy Co. During emergency meetings over the weekend, Carlson's board selected chief financial officer Trudy Rautio, a 15-year Carlson executive, to be the company's next president and chief executive officer.

Best Buy selects CEO search committee

Four board members will lead the global search for a new chief executive officer at the Richfield-based electronics retailer. Brian Dunn resigned from the leadership position amid an investigation into his personal conduct. Interim CEO Mike Mikan is considered a candidate to permanently replace Dunn. Best Buy expects the search process to take six to nine months.

Best Buy CEO resigned amid misconduct investigation

A spokeswoman for Best Buy says a committee was investigating Brian Dunn's personal conduct when the CEO chose to resign. She says the issues that led to the investigation were not related to Best Buy's operations or finances. The company described Dunn's departure as a "mutual agreement that it was time for new leadership."

Best Buy's interim CEO makes $3.3 million

Interim Best Buy CEO G. "Mike" Mikan is getting an annual base salary of $1.1 million, the equivalent of former CEO Brian Dunn's pay. In addition, Best Buy also will pay Mikan based on the annual performance bonus that Dunn could have earned last year: $2.2 million. Corporate governance experts say Mikan's pay is overly generous, given his lack of retail experience.

Best Buy CEO: We'll rise despite upheaval

After a series of bombshells that have shaken the company, Best Buy's interim CEO is trying to reassure employees that the electronics retail giant will rebound and rise again. "This has undoubtedly been the most difficult period in Best Buy's history," G. Mike Mikan said in a video message to employees Tuesday, the Pioneer Press reports.