Seismic Changes

Just two days after Circuit City accepted the inevitable - seeking protection via Chapter 11 - Best Buy now tells us that it's all going pear shaped. Earlier today, Brad Anderson, Best Buy's CEO, said that: "Since mid-September, rapid, seismic changes in consumer behaviour have created the most difficult climate we've ever seen. Best Buy simply can't adjust fast enough to maintain earnings momentum for this year."

COO Brad Dunn said that: "In 42 years of retailing, we've never seen such difficult times for the consumer. People are making dramatic changes in how much they spend, and we're not immune from those forces."

CFO Jim Muehlbauer said that: "We now plan to finish the fiscal third quarter with inventory levels, short-term borrowings and accounts payable higher than previously projected. These increases are the result of the rapid downturn in consumer spending. However, we expect year-over-year domestic inventory to be flat by the fiscal year end."