updated 10:40 am EDT, Tue April 10, 2012
Best Buy CEO agrees to step down
Best Buy offered a surprise on Tuesday with the sudden resignation of CEO Brian Dunn. The reasons for the exit weren't outlined, although the big-box retailer stressed that it was a "mutual" decision between the board and the CEO. It didn't stem from disagreements over how to run the business, the company said.
Board director Mike Mikan is stepping in as a temporary replacement until a permanent CEO is found.
The resignation nonetheless follows a major restructuring plan that will include rare store closures and other cost-cutting measures to reverse a steep loss.
Similar to large-scale stores that have gone before it, such as Circuit City and CompUSA, Best Buy has had trouble adapting to the modern competitive landscape. The anticipated decline of TVs and an emphasis on mobile have made Best Buy less essential. Internet shopping has also meant that many either skip the physical store entirely or use it only to do price comparisons.
Apple may have inadvertently helped create problems at retail, as studies have shown tablets replacing TVs for viewership. While some buy both, observed patterns have shown some people buying iPads in place of TVs due to cost and the lack of a clear need to watch TV or movies on a larger screen.