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Shop Talk

Retailers, consumers and prices

10:34 September 16th, 2008

Check Out Line: Best Buy’s profit takes a hit

Posted by: Sarah Coffey
Tags: Shop Talk

best-buy.jpgCheck Out Best Buy’s quarterly profit taking a hit after scores of store improvements took a bite out of its revenue.

Best Buy is investing heavily to add Best Buy Mobile sections to all its stores, while it also hiring more sales associates to boost customer service, and adding departments that sell musical instruments and Apple computers.

The consumer electronics retailer is also expanding overseas in China and gearing up for its first stores in Mexico and Turkey. Its international revenue grew 10 percent for the quarter, thanks to 32 new stores opened over the past year and favorable currency exchange rates. But sales at stores open at least a year fell 1 percent.

“Customers are noticing and appreciating the changes we’ve made in our shopping experience,” said Best Buy Chief Executive Brad Anderson. “Yet we have some work to do in terms of managing our expenses amid a challenging macroeconomic environment.”

Still, Best Buy is standing by its earnings forecast of $3.25 to $3.40 a share for the year.

See also:

Kroger quarterly profit rises, stands by forecast

Asda says to cut 5,000 prices, inflation has peaked

Greek Coke bottler to close Romanian plant -source

(Photo: Reuters)

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