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.
Author:
Updated:
Original:

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.

In June, interim Best Buy CEO Mike Mikan stressed "shrinking the company's physical footprint."

Joly, a 52-year-old Frenchman, most recently led hospitality and travel giant Carlson.

He replaces Brian Dunn, who resigned amid an internal investigation of an improper relationship with a female employee.

Best Buy's largest shareholder Richard Schulze is also trying to take the company he founded private for roughly $9 billion.

Next Up

Screen Shot 2021-05-16 at 10.13.52 AM

K-9 training at Willmar public housing complex on hold after ACLU complaint

The ACLU posted a photo on social media of a sign alerting residents at the Lakeview Apartments of K-9 training taking place in the building.

Cam Talbot / Minnesota Wild

Wild take Game 1 over Vegas in overtime thriller

It was an epic dual between Cam Talbot and Marc-Andre Fluery.

Taylor Rogers

Twins defense, bullpen squanders another rally

This is the story of the 2021 Twins.

Minneapolis police

3 Mpls officers injured on night of shootings, stabbings and fights

It was a tense weekend for the city of Minneapolis.

Fruen Mill in Minneapolis.

Teen in serious condition after fall at abandoned Minneapolis mill

Multiple urban explorers have been hurt at the Fruen Mill.

Screen Shot 2021-04-12 at 5.44.29 PM

Brooklyn Center City Council votes to create department for noncriminal calls

The resolution is named after Daunte Wright and Kobe Dimock-Heisler, who were both killed by police in Brooklyn Center.

Screen Shot 2021-05-16 at 7.54.26 AM

Train derails while passing by lake in Albert Lea

The Union Pacific train derailed Saturday afternoon.

Kaprizov, Wild

5 questions for the Wild's playoff series against Vegas

The Wild seem to have the advantage, but can they win their first playoff series since 2015?

police tape, crime scene

Young girl shot in the head in north Minneapolis

The girl was outside when she was struck by the bullet, police said.

prison, Rush City cell block

Former Army Green Beret and U of M student sentenced for Russian espionage

Peter Rafael Dzibinski Debbins, 46, was sentenced to 188 months in prison.

Miguel Sano

Miguel Sanó's 8th inning blast ends Twins losing streak

The 5-4 victory over the A's snapped a five-game losing streak.

Related

Best Buy CEO presents vision to analysts, investors in New York City

Best Buy's new Chief Executive Officer Hubert Joly outlined his five-point strategy, called "Renew Blue," to turn around the Richfield-based consumer electronics chain before he met with Wall Street investors in New York Tuesday afternoon, the Business Journal reports.

Best Buy's new boss starts retail gig

Hubert Joly, Best Buy's new new president and CEO, officially joined the troubled Richfield-based consumer electronics giant on Tuesday, the Star Tribune reports. Joly, a native of France, is the first chief executive officer at Best Buy recruited from outside of the company. He most recently led the Minnetonka-based hospitality and travel company Carlson. Joly will begin his new role at Best Buy on the sales floor of several stores in the Twin Cities metro. He tells Reuters, "I want to not learn our businesses from the headquarters. I want to learn from the front line."

Best Buy compensation consultant resigns, opposed retention bonuses

Longtime independent compensation expert, Don Delves, is no longer working with Best Buy's compensation committee. Bloomberg reports Delves quit after the Richfield electronics giant awarded more than 100 managers extra pay without linking it to performance -- a decision he opposed. According to an email statement, Best Buy said the incentive pay is "intended to ensure leadership continuity."

Uncertain future for Best Buy's shaken shareholders

Best Buy is holding its annual shareholders meeting Thursday. The beleaguered Richfield-based electronics giant has had plenty of boardroom drama over the past three months, including the abrupt departure of company founder and largest shareholder Richard Schulze. After months of uncertainty, investors are eager to learn what's next for the world's largest consumer electronics retailer.

Schulze to interview key Best Buy executives

Despite some opposition from board members, Best Buy CEO Hubert Joly has agreed to let company founder Richard Schulze and his team of potential investors to interview eight to 10 key executives, the Star Tribune reports. Schulze, Best Buy's largest shareholder, has until mid-November to make a buyout offer to take the struggling Richfield-based electronics retailer private. He is under a 60-day deadline to present a proposal to the company’s Board of Directors.

High-profile hedge fund manager dumps Best Buy

David Einhorn, who leads New York-based Greenlight Capital Inc., has sold off his firm's 7.7 million shares, or 2.27 percent stake, in the Richfield-based electronics retailer. The Star Tribune reports Greenlight's losses could approach $100 million. Analysts tell the newspaper Einhorn's decision to exit could help former Best Buy chairman and founder Richard Schulze, who is exploring options for his 20 percent stake in the company, including an effort to take the company private.