Best Buy Successfully Turned Itself Around, but New Blue Is the Future

Best Buy (NYSE: BBY) shareholders have had reason to cheer lately. Unlike competitors HH Gregg, Circuit City, and Radio Shack, the company has survived the retail shake up, and its stock has handily outperformed the broad market over the past five years. So how did the company do it?

Five years ago, Best Buy was suffering from declining revenue and profitability, and its former CEO was fired for having an improper relationship with an employee. Enter new CEO Hubert Joly, a former McKinsey & Co. consultant, whose turnaround effort was detailed in a recent New York Times piece. The steps included:

With Best Buy on firmer footing, what of its future? Though the company is now the leading brick-and-mortar electronics retailer, it still faces stiff competition from Amazon, a rejuvenated Wal-mart, and even Costco, which sells big-ticket electronics such as flat screen TVs.

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Source: Fool.com