Best Buy Co.’s decline in holiday sales, which triggered a 29 percent drop in its stock yesterday, is raising doubts over Chief Executive Officer Hubert Joly’s turnaround strategy, Bloomberg News reported today. When Joly joined the world’s largest electronics chain in September 2012, he zeroed in on becoming price competitive with the likes of Amazon.com Inc. His theory was to remove price from the purchase decision and consumers would stick with Best Buy because they can find a wide assortment of products, get advice from knowledgeable staff and test gadgets. That approach failed to boost holiday sales in the U.S., which includes stores and online purchases. Even though the chain aggressively slashed prices, revenue from outlets open at least 14 months fell 0.9 percent in the nine weeks ended Jan. 4, the Richfield, Minnesota-based retailer said yesterday. In addition, Joly’s price cuts will narrow profit margins by twice as much as the company expected in the fourth quarter.
