It’s tough to try selling a $3K high-end television when others are struggling to sell a $30 pair of jeans, says consumer electronics retailer Best Buy, forcing it to downgrade expectations for the next quarter. Although it has been winning its war with peer Circuit City, which just went into Chapter 11, it is having trouble with competition on the lower end from Wal-Mart. BB’s store-to-store comps were down 1.3% in September, then down 7.6% in October, and its looking at losses in the 5%-15% range during each month through February.
RBR/TVBR observation: Consumer electronics firms should be basking in the glow of the DTV transition, and perhaps picking up a few sales from HD radio here and there. Ugliness.