Report: Best Buy CEO Eyes Bankrupt Retailer Locations
Best Buy Co. said on Thursday that it could take advantage of bankruptcies in the sector by snapping up vacant store locations, but it remains cautious as consumer spending continues to slide, according to a Reuters report.
“We are looking at some of those [stores], but our first priority is to stay cash strong,” the chain’s CEO Brad Anderson told Reuters on the sidelines of the World Economic Forum in Davos, Switzerland.
“We would be more cautious than we would [be] in most environments, and take advantage of less than we would have a year or two ago,” said Anderson, who plans to retire in June.
On the subject of the U.S. economy, Anderson believed “we are probably close to a bottom,” but he sees the “risk of another real estate move down.”
Consumer spending could see “a little further drift down as we go into the year,” he added.
On Wednesday, Best Buy said it would begin involuntary layoffs at its Minneapolis headquarters in an effort to cut costs.
Best Buy to reduce headquarters staff
MINNEAPOLIS Best Buy will lay off an unspecified number of headquarters employees on Feb. 19. The move is on top of the 500 voluntary layoff workers agreed upon earlier this month. The move reduces the corporate headcount to 3,500.
According to reports, average non-managerial employees will receive six months of severance pay.
Tractor Supply posts 1.3% comps gain in Q4
BRENTWOOD, Tenn. Tractor Supply Company announced that net sales for the fourth quarter increased 10.5% to $799.5 million from $723.3 million in the prior year’s fourth quarter. Same-store sales increased 1.3% compared with a 3.8% gain in the prior year’s fourth quarter.
Net income for the quarter was $24.7 million, or 67 cents per diluted share, compared to net income of $30 million, or 77 cents per diluted share, in the fourth quarter of the prior year.
For fiscal 2008, net sales increased 11.3% to $3.01 billion from $2.70 billion and same-store sales increased 1.4% compared to 3.4% for fiscal 2007.
Net income for fiscal 2008 was $81.9 million, or $2.19 per diluted share, compared to net income of $96.2 million, or $2.40 per diluted share, for fiscal 2007.
During fiscal 2008, the company opened 91 new stores and relocated one store. This compares to 89 new store openings, 12 relocations, and selling its only Del’s store located in Canada in fiscal 2007.