The Big Story Blog

Why Best Buy CEO 'had to quit'

Posted at 1:38 PM on April 10, 2012 by Paul Tosto
Filed under: Economy, Retail

Forbes magazine really shook the earth on Best Buy with its January essay detailing why the Richfield-based retail giant was doomed.

Today, writing about the news that Best Buy CEO Brian Dunn was resigning, Forbes got some interesting detail from Colin McGranahan, an analyst with Bernstein Research who follows Best Buy:

Colin McGranahan of Bernstein Research says the news of Dunn's resignation as CEO, coming so soon after a disastrous Q4 and announced multi-year restructuring program, suggests that Dunn and the Best Buy board were not on the "same page" about the direction the company needed to go in. He was big on stores and physical retailing.

McGranahan says the board is going to find someone willing to do bolder things such as get out of China to raise capital, whack payroll at the store level and figure out the Web in a real way. No one is going to buy this thing, given that there is no one to buy it.
It's not clear what Best Buy will look like to customers in five years. But there's no doubt big change is on the way.

About Paul Tosto

Paul Tosto

Paul Tosto writes the Big Story Blog for MPR News. He joined the newsroom in 2008 after more than 20 years reporting on education, politics and the economy for news wires and newspapers across the country.

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