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New Best Buy Strategies Will Combat 'Showrooming'

Mike Mikan said the company is committed to change at the annual meeting Thursday.

During Best Buy's , interim CEO Mike Mikan said while the company had a lot of work to do, it was "on track" to meet its annual plan.

According to MPR, Mikan promised shareholders aggressive cost-cutting initiatives over the next couple years and more innovation, recognizing the company was slow in responding to changes in the market. The company has lost sales to Amazon.com and Apple Inc. and Mikan believes improving the in-store and online shopping experience is necessary.

In addition, .

"Total square footage will go down as we make decisions about the best use of resources," Mikan said. "But as we assess opportunities, our total number of storefronts may stay the same or even grow somewhat, though with a more focused presence. We're already moving down that path but we'll need to do more."

According to Business Week, Best Buy plans to make $800 million in cuts over the next three years.

While the company will cut some costs with cutting floor space, Mikan said the company will spend more money on training its employees. The added training will hopefully enable workers to sell to consumers who are now using the stores to compare prices and then buy from online rivals. MPR said roughly 50,000 employees will attend training between August and the holidays.

The newly revamped Richfield store is set to .

David Haines June 22, 2012 at 03:43 PM
I am curious what this training will entail. Besides prices, I think people shop online to avoid sales pitches and having to deal with overly pushy salespeople selling add-ons and accessories. These are both reasons I enjoy shopping online. I also like that I can read a wide variety of reviews and not just take the salesperson's word for it. I shop online plenty and I don't need to go into a store to see what I am buying first so I hope they focusing on more than just the 'showrooming' issue. They really need to improve their online shopping experience, like yesterday.
jamzie August 13, 2012 at 06:48 AM
i as showrooming online price higher than store! i want hp laptop, phillips tv, not in store , 2 blocks from me! i can drive 10/20 miles to get what i whant, but not! so s

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