MINNEAPOLIS (WCCO) – It’s hardly the kind of 10th anniversary surprise that Best Buy employees were expecting.
The sprawling campus at Penn Avenue and Interstate 494 stands as a shining beacon to the importance of retail.
Now, a decade after the company’s corporate headquarters were built, 400 Best Buy employees are out of jobs, and are the latest casualties in the company’s efforts to trim $725 million in costs.
Akshay Rao is a marketing professor at the University of Minnesota’s Carlson School of Business. He says Best Buy indicates it will engage in more cost cutting. He said to avoid going the way of former electronics retailer Circuit City, Best Buy has to redefine what it offers to the customer.
“This is the question people at Best Buy need to ask internally, both carefully and thoughtfully about, ‘Who is their customer,’ and ‘What is it they are offering that customer?'”