Best Buy (BBY) Slashes Seasonal Hiring Plans in Half
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Price: $85.89 +0.19%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.3%
Revenue Growth %: +1.1%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.3%
Revenue Growth %: +1.1%
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Best Buy (NYSE: BBY), feeling the economic pinch and competition from rivals, is expected to make a drastic change heading into the holidays.
It's going to hire a ton less seasonal employees.
Reports Wednesday suggest Best Buy is aiming to add just 15,000 seasonal employees to its roster for 2011, down 48 percent from the 29,000 hired last year. The move is in contrast to clothing retail giant Macy's (NYSE: M), which expects to boost holiday hiring by 4 percent to 78,000 workers.
CEO Brian Dunn, speaking with Reuters, said Best Buy is counting on permanent employees to work overtime to fill any gaps left with seasonal shoppers rushing in. Dunn is also bearish on the economy, expecting shoppers to spend less this season.
To combat competition from the likes of Amazon.com (Nasdaq: AMZN) and Wal-mart (NYSE: WMT), Dunn said Best Buy is "dramatically" increasing ad spending to mobile and digital advertising. Best Buy's Chief Marketing Officer recently suggested 60 percent of shoppers visit Best Buy's online store before coming into a physical location.
Dunn also hopes Best Buy will carry all of the most sought after gifts this season, including Apple's (Nasdaq: AAPL) next iPhone. About whether Best Buy will carry Amazon's new media tablet, Dunn quipped that Best Buy is having all the "conversations you'd expect them to be having."
It's going to hire a ton less seasonal employees.
Reports Wednesday suggest Best Buy is aiming to add just 15,000 seasonal employees to its roster for 2011, down 48 percent from the 29,000 hired last year. The move is in contrast to clothing retail giant Macy's (NYSE: M), which expects to boost holiday hiring by 4 percent to 78,000 workers.
CEO Brian Dunn, speaking with Reuters, said Best Buy is counting on permanent employees to work overtime to fill any gaps left with seasonal shoppers rushing in. Dunn is also bearish on the economy, expecting shoppers to spend less this season.
To combat competition from the likes of Amazon.com (Nasdaq: AMZN) and Wal-mart (NYSE: WMT), Dunn said Best Buy is "dramatically" increasing ad spending to mobile and digital advertising. Best Buy's Chief Marketing Officer recently suggested 60 percent of shoppers visit Best Buy's online store before coming into a physical location.
Dunn also hopes Best Buy will carry all of the most sought after gifts this season, including Apple's (Nasdaq: AAPL) next iPhone. About whether Best Buy will carry Amazon's new media tablet, Dunn quipped that Best Buy is having all the "conversations you'd expect them to be having."
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