Best Buy Co., Inc. (BBY), Staples, Inc. (SPLS): Are Big Box Stores In Panic Mode Yet?

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Amazon.com changes the landscape

Brick and mortar stores like Best Buy Co., Inc. (NYSE:BBY) and Staples, Inc. (NASDAQ:SPLS) are changing the way they operate to try to gain back some of the market share that was lost to Amazon.com. The firm has completely changed the game for the other players in the consumer goods market. Amazon.com, Inc. (NASDAQ:AMZN) offers about 48% of what Staples provides, but usually at a much cheaper rate, according to analyst William Blair and Co. For example, Uni-ball Gel Grip pens cost about $17.99 at Staples, Inc. (NASDAQ:SPLS), but are $13.99 on Amazon.com, Inc. (NASDAQ:AMZN). The company is able offer such low prices because it doesn’t have nearly as much overhead as Best Buy and Staples.

Best Buy doesn’t look to be focused

While Staples, Inc. (NASDAQ:SPLS) is making staggering progress in its ability to compete with Amazon, Best Buy doesn’t look to be making the same effort. The store is often being used by shoppers to browse for products before people go home and buy them for cheaper online. However, Best Buy’s new strategy looks to be similar to that of Home Hardware, which prides itself on a knowledgeable staff and increased sales dramatically after striking that focus. But in a market that is digitally evolving, Best Buy Co., Inc. (NYSE:BBY) might lose out if it doesn’t become more integrated online, particularly because many of its customers are already tech savvy and don’t have a problem shopping online.

The article Are Big Box Stores In Panic Mode Yet? originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com and Staples. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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