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    • CommentTimeApr 25th 2014
    Just read this article on Cnet and couldn't help what this means for the future of Fry's. Is it next? Will it grow from Best Buy's fallout? What do you think?  

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    Fry's will probably open stores in those locations
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    I don't think so. Best Buy had 1,056 stores in 2013 and they had saturated the market. The cost in labor (100+ employees per store) and real estate (Best Buy leases all their stores IIRC) plus utilities, taxes, insurance, etc is crushing them. Back when the economy was booming it made sense to put a store on every corner but now, not so much. Though Best Buy is closing more stores than Fry's has, it's still just 5% of their total store count. Judging by the situation in my area (three Best Buys in a ten mile radius) they could cut much more than that.  
    Also look at this old topic: That was almost 6 years ago. As a private company, Fry's is a black box so it's anyone's guess, but Randy is not stupid and I have no doubt if Fry's was losing money he'd liquidate the whole thing and run off to his island on the 747. Fry's, by owning all their real estate and having a microscopic footprint compared to Best Buy or CC is much better positioned to ride out a decline in electronics retail. The stores will be cavernous and empty though, full of white shirts trying to bum rush the three remaining customers (one to buy the ad piece laptop to resell, one trying to get free tech support for his old eMachines running XP, the other to price match Newegg).  
    Fry's has a much smaller footprint and their stores don't compete with each other as much. Fry's actually made a good decision in growing slowly instead of getting fat and bloated during the boom years.  
    Also, Fry's doesn't pay their vendors so that's another way they save vs. Best Buy!
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    Frys, just like walmart, owns the land and building. And each store has a built in rent rate that is subtracted from the stored profits, which hits the managers and supervisors, until the building is paid off 100%. So the store is paid off by the employees. It sucks for me, but you have to give credit to the Frys bros for knowing how to mess with numbers.