Earlier this week, Business Insider ran a post on the declining cost of a television set. The chart seems surprisingly apt on news that Best Buy missed analyst expectations.
During its conference call this morning with investors, company executives noted that even as it sold more television units, the declining prices kept the division from posting positive comps.
Read that as follows: No matter how much promotional activity you attach to these sets, you cannot grow the business (particularly as competitors like Amazon, Walmart, along with its own website, eat at its brick and mortar sales).
We recently ran this as a Chart Of The Day.
Photo: The Awl
The company managed to eke out same-store sales growth of 0.3%, as the mobile and tablet market picked up share.
Best Buy was also hard hit by declines in its entertainment and gaming units. New data from Nielsen shows DVD sales contracting 9% this year. Combine that with difficult comparisons on TV sales, and it’s an uphill battle for Best Buy.
Take a look at Best Buy same-store sales over the past decade:
Photo: Company Filings
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