Best Buy hailed for 'historic turnaround'


A year ago, most analysts on Wall Street were betting Best Buy would go belly up, like its rival Circuit City. But now the Richfield-based company is being hailed as "one of the biggest turnarounds in retail history,"according to The New York Times.

Best Buy stock is among the top performers on Wall Street, with a gain of nearly 240 percent this year. Other retailers are trying to figure it out how the retailer survived and thrived in the age of Amazon.

The Times says credit goes to a relatively unknown new CEO who took over not long after a scandal involving the previous chief executive and the departure of founder Richard Schulze. Schulze resigned amid declining sales, although he now serves as Chairman Emeritus at the company.

French-born Hubert Joly took over in August 2012. He had been chief executive of privately-held Carlson, which owns the travel service Carlson Wagonlit, the Radisson Hotel chain and T.G.I. Fridays restaurants. The Times says that's why investors didn't know him. And because the search for a new CEO took nine months, most assumed many others had turned down the job.

One of the trends that’s helping Best Buy is the age of the average television. Flat-screens first saw strong sales between 2004 and 2006, and since they last about nine years, a large number of early adapters should soon be looking to replace them.

MPR News reported that Best Buy stock took a fourth quarter dip when the company announced it planned to be competitive during the holiday season. Still, it reported third quarter net income of $54 million, compared with a $10 million loss a year ago.

In a Star Tribune profile, Joly told reporters the company was pleased with its turnaround strategy. The "Renew Blue" campaign boosted online sales, made better use of showroom floor space and emphasized in-store customer experience.

"We are very pleased witht he first year of the transformation, but the glass is half-empty," Joly said. "We will be on a multiyear journey."

Next Up

moose minnesota usfws - flickr

MN homeowner mistakes large tent for dead moose

They spotted two people on a security camera dragging the "moose" across a driveway.

Flickr - minneapolis police officer close-up belt camera - Tony Webster

What happens if Mpls. public safety question passes? City memo provides answers

The memo was sent to the mayor and council members Tuesday morning.


COVID-19 hits Minnesota Wild coaching staff

The Wild will be shorthanded for Tuesday night's game in Vancouver.

Anthony Edwards

Ant takes alpha role after bad loss: 'We need to lock the f*** in'

The Timberwolves' rising star was not happy after Monday's loss to the Pelicans.

parker eisinger

Lakeville football player diagnosed with cancer week before playoffs

The tenth-grader was diagnosed with a form of cancer most commonly found in people aged 65 and older.

University of Minnesota peeping tom suspect

Someone keeps trying to film showering women at U of M

The university has received three reports in the past two weeks.

john Fluevog shoes 1

John Fluevog Shoes closes its Uptown Minneapolis store

The brand could return to the Twin Cities one day.

sidecar drink

Sidecar — Town Hall's new cocktail lounge — is officially open in Minneapolis

It's the fifth Town Hall location, but the first to focus on cocktails.

Screen Shot 2019-07-18 at 9.10.30 AM

Here's where DFLers stand on Minneapolis' public safety ballot question

The question would create a Department of Public Safety and remove some requirements.

Arthur Kollie

Man pleads guilty to brutal murder of 14-year-old girl in Fargo

The 14-year-old girl was the victim of a random attack outside a Fargo strip mall.

Minneapolis Mayoral Candidates 2021 - jacob frey sheila nezhad kate knuth

Here's who has endorsed the frontrunners for Minneapolis mayor

Politicians and community groups are voicing their opinions.