Tuesday, December 26, 2006

Electronics

Apparently they aren't very profitable these days. The bigg's store where I work (Florence, KY) is shutting down its electronics department effective the end of January. A few components (accessories) will remain, but all DVDs (save perhaps new releases), CDs (same caveat as DVDs), and game systems will go. Apparently the store makes more money on a X-Box 360 controller than it does on the system that costs ten times as much to purchase.

I can certainly understand this in business terms, though it is somewhat unfortunate for those trying to do "one stop shopping." Of course other departments have already been downsized or eliminated over the years, so you'll mainly get groceries and other items at the bigg's Hypermarket. One item really stood out. One recent DVD release was purchased by the store for $19.50 and sold for $19.99 leaving a profit margin of $0.49!! One stolen DVD could wipe out the profit from almost forty more.

~Matt

No comments: