As Google Inc (GOOG) Plans Stores, Best Buy Co., Inc. (BBY)’s Days are Numbered

Educated electronic consumers know what they want and can easily order it for themselves online. But there are many, many consumers who are still dumbfounded by the intricacies of modern electronic devices. For them, they need direct one-on-one help.

Best Buy’s solution to this issue has been the “Geek Squad,” but Best Buy’s Geek Squad has never been considered to be in the same caliber as Apple’s Genius Bar. And now, with Microsoft and Google Inc (NASDAQ:GOOG) offering their own stores with Windows and Android Genius equivalents, the Geek Squad faces even more competition.

RadioShack Corporation (NYSE:RSH) is better positioned
With its smaller stores, RadioShack seems to be better positioned to profitably serve those consumers who can’t make it to a dedicated Apple/Microsoft/Google store.

If Best Buy is doomed to go the way of its former rival CircuitCity, RadioShack could see a resurgence. It too has struggled in recent years, in fact RadioShack has been an even worse performer than Best Buy, but if Best Buy is out of the way, the company could stand to benefit.

To be completely fair, the market might not even be big enough for RadioShack. Small electronics departments within stores like Target and Walmart might suffice, but if there’s still a need for dedicated general electronics store, RadioShack’s smaller overhead could give it an advantage.

Takeaway
With the Internet search giant Google Inc (NASDAQ:GOOG) looking to sell devices right to consumers (along with Apple and Microsoft), the need to have dedicated electronic mega stores like Best Buy seems more and more doubtful. If Schulze cannot mount a takeover, the future looks increasingly bleak for shareholders.

The article As Google Plans Stores, Best Buy’s Days are Numbered originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

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