Earlier this week, we reported that Best Buy founder Richard Schulze wanted to buy the entire company for about $10 billion. Schulze wants Best Buy to succeed moving forward, but fears it’s on a rapid descent to nothingness. It actually is, too. The stock price has tanked from a 52-week high of $28.53 and the company has cut its staff and closed 50 store locations. So what’s Schulze’s rescue plan for the troubled big box retailer? Mimic Amazon and Apple.
According to The Wall Street Journal, Schulze wants Best Buy stores to have an in-store customer service experience that matches what one might find in an Apple Store. Best Buy has already taken strides to accomplish this goal — it has already opened up new stores that are smaller in size, have a more proficient layout and offer a Solution Central desk staffed with its Geek Squad employees, just like Apple offers through its Genius Bar.
Schulze also wants Best Buy to drop its prices so that it can better compete against other retailers, such as Amazon. It needs to do a lot more than that, though. Amazon supports thousands of third-party stores that sell more than just electronics, and that’s part of what makes it so attractive.
The co-founder has to convince the board of his case, but he’s not doing the backing all alone. The Wall Street Journal said that Apollo Global Management, KKR & Co., Leonard Green & Partners LP and TPG Capital have all been pitched by Schulze and that each is considering an investment in his proposal.
[via The Wall Street Journal]