Best Buy Co., Inc. (BBY): How This Retailer has Completely Turned it Around

As for Google, the company has been rumored to be plotting a retail rollout. In the past, I had even written that if the search giant chose to do so, it would signal the end of Best Buy’s business. But with Microsoft setting the example, it would probably make sense for Google to go the Best Buy route rather than work independently.

Certainly, it would be in Google’s best interest to get into retail. In particular, if the company wants Google Glass to do well, it needs a physical location where it can showcase the product to potential consumers.

Moreover, a Google store could also help the company teach people about the Chrome operating system, and by extension, sell Chromebooks. It could also help move Google’s lineup of Nexus devices.

The bull case for Best Buy

In the coming months, I expect Best Buy Co., Inc. (NYSE:BBY) to announce additional partnerships with other major tech firms. Besides the obvious examples of Sony and Google, other companies such as Hewlett-Packard Company (NYSE:HPQ), Toshiba, Amazon.com, Inc. (NASDAQ:AMZN) and even Research In Motion Ltd (NASDAQ:BBRY) could consider making a deal with Best Buy.

It is truly a game changing development for the tech retailer. Just a year ago, Best Buy’s real estate assets were seen as a burden — large stores just weren’t needed, many argued.

But now, Best Buy has been able to completely spin that around. As the success of Apple’s retail operation shows, electronics stores can still do well, as long as they’re run properly. That is, consumers want dedicated stores with knowledgeable workers — not enormous warehouses.

The typical Best Buy Co., Inc. (NYSE:BBY) might not look that much different than it did a year ago today, but the stores should continue to transform in the coming months. Overall, the outlook for the business has certainly improved.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft.

The article How This Retailer has Completely Turned it Around originally appeared on Fool.com.

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