New strong retailer competition = lower LCD prices?

KeanosMagicHat

Novice Member
I've just read today that Carphone Warehouse has agreed the sale of 50% equity to US retailer Best Buy.

The joint venture will sell consumer electronics through Carphone's 2400 existing stores and online.

Best Buy is a huge discount LCD dealer in the US so I see this added competition as a good thing with regards UK pricing (and also perhaps pressure on the manufacturers to release UK models quicker post US release).

Source


EDIT: I've just re-read the article and apparently Best Buy are, "the world's largest consumer electronics retailer" so their buying power will be unrivalled.
 

jpxdude

Novice Member
I think this is absolutely wonderful news for the consumer...

Usually when I visit the states, Best Buy is one of the places I most look forward to going to, just to geek out, and gawp at the new tech, and shop for the cheaper stuff haha...

Its a great place, quite like our Dixons and Currys in the UK. I hope we get these in the UK, as the competiton should drive down prices! :clap:
 

Jakeh1969

Novice Member
Not wishing to rain on anyone's parade but the UK isn't called "Treasure Island" for nothing........

Considering the fierce price competition in the US, Best Buy may well be trying to improve overall profitability by expanding into other markets.

Lower LCD prices will only (possibly) occur when Best Buy start opening their own stores and competing head to head with Currys and PC World. In the early stages it will be impossible for them to sell large screen TV's from Carphone Warehouse stores as they're normally small stores.

Their buying power may not help them as retail stores in Europe will need to be stocked with products designed for European markets and the manufacturers know that so local deals will continue to be done.

Considering they could have bought the whole of DSGi for what they paid for a half stake in Carphone Warehouse it makes you wonder what the game plan is.
 

KeanosMagicHat

Novice Member
..... Considering the fierce price competition in the US, Best Buy may well be trying to improve overall profitability by expanding into other markets.
I'm absolutely sure that is the plan. After all we're consistently ROBbed in Rip Off Britain.

However, with this move, if Best Buy decide to seriously attack the LCD market (amongst others) then the size and spending power of the Best Buy group will be able to drive prices down so that we are ripped off to a lesser extent.

;)
 

Curly99

Distinguished Member
Ah a bit like Walmarts buying power leading to cheaper shopping baskets.....they'll price according to the particular market there in, so don't expect vastly cheaper tv's.

Curly
 

KeanosMagicHat

Novice Member
Ah a bit like Walmarts buying power leading to cheaper shopping baskets.....they'll price according to the particular market there in, so don't expect vastly cheaper tv's.

Curly
You have to be realistic. I'm not expecting it to blow the prices out of the water, but it will have a positive reduction effect so any price drop is a good thing.

Using your Walmart example, their introduction and the subsequent more aggressive supermarket pricing competition in consumer electronics, was a significant contributor to things like the £15-£20 DVD players etc that are now available.
 

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