Best Buy Co., Inc. (BBY): This Retailer Needs to Do More to Stay Relevant

Investors know that brick and mortar stores are struggling, and are having trouble against giant online retailers. For instance, online retail spending has grown into a $200 billion dollar industry. To make matters worse for Best Buy, online retail spending is estimated to reach $327 billion per year by 2016. In my opinion, if Best buy and other stores want to survive, they need to start putting more focus into their online website growth.

Final thought

So, as we see, Best Buy Co., Inc. (NYSE:BBY) is in a huge bind. That’s not to say it is game over for the retailer, but if it wants to continue as a business, it has to restructure itself differently. Starting to close some stores down, and changing other stores by adding boutiques inside is a good start. But in the end, Best Buy has to remodel its online business and find a way to start competing against Amazon.com, Inc. (NASDAQ:AMZN).

It also needs to increase its supply chain by being able to get products quicker and cheaper for the consumer. If it can do this, then despite facing tough challenges, Best Buy can stay relevant in the distant future. Then possibly, long-term stockholders can still find some real value in this retailer going forward.

Terry Chrisomalis has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com.