Best Buy Hires New CEO Following Scandal
Best Buy today announced that it has appointed Hubert Joly as the company’s CEO. Joly is currently the CEO of Carlson, a worldwide hospitality and travel company.
“Hubert was an outstanding candidate for this position and I am confident he will be a great fit for Best Buy,” said Hatim Tyabji, chairman of the Best Buy Board. “Hubert’s range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies.”
Retailers with large, physical stores have had a tough decade-long confrontation with internet-only retailers such as Amazon. Retailers who relied significantly on selling physical copies of media such as movies, music, and video games have, perhaps, been hit the hardest. The combination of lower online prices, subscription services such as Netflix and new video streaming services helped make Circuit City stores a thing of the past.
In addition to these same pressures, Best Buy has dealt with a recent scandal causing a significant shift in the company’s top management. In April, Best Buy CEO Brian Dunn resigned following allegations of an inappropriate relationship with a subordinate. Best Buy founder and Chairman of the Board Richard Schulze was forced out soon after when it was discovered that he had known about Dunn’s relationship for some time. Schulze has since offered to buy back the company.
In the midst of these changes, Best Buy began to focus more on services rather than products. The company has taken steps to reduce the number of big box stores that it operates, instead building smaller, more targeted stores.
“I am honored and excited to lead Best Buy,” said Joly. “Best Buy has extraordinary assets — including its 167,000 employees, its huge customer base, its distribution and service capabilities, its well-recognized brands, and its history of innovation. I look forward to working with the Company’s management team and employees to pursue what are exciting growth opportunities for Best Buy – both online and offline, through a combination of competitive prices, superior service, new growth engines, and innovations, as we deliver to millions of customers the technology solutions that enable easy access to people, knowledge, ideas and fun.”