Check out the pessimism at Best Buy.
 
“The historic slowdown in the economy and its effect on our business over the past 90 days have been the most challenging consumer environment our company has ever faced,” said Brad Anderson, vice chairman and CEO of Best Buy. “We believe that there has been a dramatic and potentially long-lasting change in consumer behavior as people adjust to the new realities of the marketplace.”
 
That’s coming from the CEO of an electronics chain that ISN’T in bankruptcy.
 
Best Buy actually reported better-than-expected earnings Tuesday. But that still amounted to a sharp drop in quarterly profits on a 5.3 percent decline in same-store sales.
 
Best Buy has offered almost all of its corporate employees voluntary separation packages to try to prepare for an even bigger drop in consumer spending.
 
The company also plans to cut its capital spending in half next year and also could have involuntary layoffs.
 
Also in the basket:
 
Downturn spurs “survival panic” for some in U.S.
 
November housing starts and permits at record low
 
Consumer prices post second record drop in November
 
Friedman downgrades Gap; sees weak 2009 sales
 
Seeking Bright spots: Men’s, outlets do OK during dismal holiday (WWD, subscription required)

(Photo: Reuters)