Best Buy: Is This What mindSHIFT Signed Up For?
Best Buy (NYSE: BBY) founder Richard Schulze has has resigned as chairman and is exploring options for his 20 percent stake in the big box retailer, according to a statement Schulze released. Reuters believes Schulze may surface again in a bid to take Best Buy private. Whatever the case, Best Buy’s continued struggles and management changes beg the question: Is this what mindSHIFT had in mind when the managed services provider sold its business to Best Buy in 2011?
Of course, my question is rhetorical. Multiple sources tell me mindSHIFT’s operations have not been impacted amid Best Buy’s management and financial changes.
While mindSHIFT remains focused on managed services and cloud services, parent Best Buy’s business has suffered on multiple fronts.
- CEO Brian Dunn left the company roughly two months ago amid personal conduct questions from Best Buy’s board.
- Best Buy itself has struggled to compete with online retailers, discount retailers and various cloud services providers. Best Buy’s sales at stores open at least 14 months, or same-store sales, have fallen in seven of the last eight quarters, according to Reuters.
Schulze was expected to step down as chairman in late June though he was expected to retain a board seat. His departure is a clear change of plans.
But sources say the mindSHIFT strategy remains in place, as does Best Buy’s effort to expand the Geek Squad business with a channel partner program.