Best Buy interim CEO Mike Mikan has a lot of work to do to jump-start the ailing consumer electronics retailer, and he knows it.”Right now, we aren’t even close to good enough,” admitted Mikan on the company’s Q1 conference call with analysts.
Mikan went into a long list of things that he and Best Buy has to do to move forward.
He was refreshingly blunt and realistic about the company’s situation:
“I believe an essential part of moving this Company forward is acknowledging the truth about where we are. Best Buy is not performing up to its past standards.
We need to change substantially. We need to change who we are and what we do and how we relate to customers and shareholders.
After six weeks on the job, I would say Best Buy is in a turnaround. This assessment reflects the reality of the moment.
It does not mean we are in any danger of going out of business. It does mean that bold actions are required. Tough decisions will be made.
We must take a fresh look at our investments in the entire business, and I can assure you there will be no sacred cows.”
Mikan was a director at Best Buy and was given the interim CEO position after Brian Dunn’s departure. A former health care executive, Mikan is very much an outsider to Best Buy and the retail industry.
This allows him to have an outsider’s view of Best Buy’s status. He also doesn’t have personal ownership of the initiatives from Dunn’s previous regime. When he says there will be no “sacred cows,” he probably means it.
Best Buy beat expectations this morning, but same-store sales continued to fall.
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