Executives of Best Buy last Thursday said in the general meeting of shareholders that they will provide staff with better training and expand technology services to the enterprise market, hoping to appease shareholders by virtue of this recovery plan.
Best Buy’s interim CEO Mike Mikan acknowledged that this e-retailers did not timely detect threats. For example, when the e-commerce is booming today, many entities retailers have been reduced to the “inspection spots” of Amazon and other online retailers. “To end this trend is our top priority,” Mikan said.
Best Buy promised to stand out from the competition by improving customer service, but Mikan and other executives did not provide too many details. The company has increased the training budget, and plans to expand the centralized training of 50,000 employees from September to the start of the Christmas shopping season, more than one-third of its workforce.
Due to the lack of new products which can replace the flat-panel TVs, Best Buy also promised to improve revenue by expanding services business, aiming at both businesses and individual users.
Mikan said, Best Buy recently signed a high-amount technology services contract with a company, but he declined to give details. Earlier this week, the company also acquired the services company Whitev Glove Technologies which headquartered in Austin, Texas, but it did not disclose specific terms.
Wall Street analysts believed that Best Buy has begun to expand technology services to the enterprise market, but it has not achieved much success.
The general meeting of shareholders considered the business as the core, not involving the scandal of CEO departure recently troubled Best Buy. The company’s former CEO Brian Dunn was investigated by the board of directors in March of this year due to “improper relationship” with a subordinate and then left.
In the course of investigation on the Dunn, the Board found that the founder and largest shareholder of Best Buy Richard Schulze had already known this, but he did not inform the other directors. After this, Schultz agreed to be relieved of the office in the shareholders’ meeting. But he suddenly resigned as director earlier this month and said he was considering how to deal with the 20% Best buy shares he held.
Schultz did not attend the general meeting of shareholders.