Best Buy, a once prosperous retailer that dominated the technological market is now facing a low income crisis due to digitalized forms of shopping gaining popularity. With online retailers populating the shopping market, physical stores are facing the repercussions.
“One of the primary reasons behind Best Buy’s downfall is the rise of online retail and e-commerce giants like Amazon,” as reported in jacobruhl.medium.com.
Beginning in 1966 under founder Richard M. Schulze and prior to Amazon, Best Buy provided unbeatable market prices and expansive product options that customers valued. It rose quickly in its success, reaching a total of 1,144 stores worldwide at its peak in 2022. These have been reduced due to a new competitive market leading eventually to the the store’s demise.
“These tech-savvy competitors have successfully leveraged the convenience of online shopping and have captured a significant portion of the market share that was once dominated by Best Buy,” according to jacobruhl.medium.com.
Specifically, Amazon has been the major contributor to its downfall.
Amazon’s vast product selection, competitive prices, and efficient delivery systems have eroded Best Buy’s customer base over time,” as reported in jacobruhl.medium.com.
Unable to compete with these qualities Amazon provides, Best Buy has faced a 91% drop in profits.
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Best Buy reported a profit of $12m for the quarter ending August 4 versus $128m a year earlier.
— theguardian.com
This noticeable decrease is quite devastating to experience given Best Buy’s long-standing shops scattered across the U.S. aiding the nation’s technological needs for 60+ years. Especially, with Amazon merely circulating the internet for 29 years, it symbolizes the rapid pace of a constantly evolving marketplace.
Should this be of concern to other retail store owners and consumers? Is Amazon the driving force behind most retail stores filing for bankruptcy? Is Amazon monopolizing the industry? All are now pressing questions Congress and the nation need to consider as yet another store closes while consumers click away at the convenience of their screens for yet another item on Amazon.
