Tomahawk, WI 01/28/2014 (BasicsMedia) – Best Buy Co. Inc. (NYSE:BBY) which had made a significant turnaround in 2013 with the value of its stock price increasing almost four-fold seems to be headed for doomsday as it declared its fourth quarter ending results last Thursday which showed miserable holiday sales data due to which Best Buy’s stock crashed 30% in a single trading day.

Best Buy Co. Inc. (NYSE:BBY)’s sales revenue and its earnings fell remarkably this quarter compared to the same quarter last year and the consumer electronics giant has blamed intense market competition for the same. Best Buy which was engaged in aggressive promotional activity this holiday season which resulted in a tremendous fall in their earnings which coupled with their rising cost prices seems to have stuck death knell for the company. The bricks and mortals stores of Best Buy are facing severe competition from online retailers like Amazon Inc. (NASDAQ:AMZN) and Best Buy is finding it difficult to stand up to these giants.

Best Buy Co. Inc. (NYSE:BBY)’s CEO, Hubert Joly, have done a great job by cutting costs however to win against other online retail giants he would have to make his company much more well-organized, resourceful and to generate profits and earnings more than the expectations of its own shareholders. However, the recent dismal holiday sales of Best Buy seem to indicate that Hubert Joly’s strategy of reorganizing its company has failed to yield desired results for his company.

Meanwhile, Goldman Sachs has downgraded Best Buy’s share from “buy” to “neutral” delivering another blow to Best Buy which had clearly indicated in its annual report that any down gradation of its shares would make it difficult for them to obtain adequate financing, including via trade payables with their vendors.

This holiday season sales of Amazon has proved that retailers are more keen on purchasing things online then from brick and mortal stores and even E-retailers benefit hugely form this trend as they are not required to maintain any stores thereby increasing their profit margins. Best Buy Co. Inc. (NYSE:BBY) has to compete not only against E-retailers but multinational retail companies like Wal-Mart Stores Inc. (NYSE:WMT) which supplies everything under one roof thereby giving them an advantage to earn better profit margins on their products. Only time will tell that if Best Buy Co. Inc. (NYSE:BBY) is capable enough to stand up to its competitors or would it crumble under the pressure of huge competition, increased costs and dismal earnings.

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