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Best Buy CEO Steps Down Due to Online Shopping

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best_buy_logo.gifReuters reports that Best Buy Co Chief Executive Brian Dunn has left Best Buy, which has struggled against the increased competition from Internet retailers and discounters. As a reminder, Best Buy is the largest consumer electronics chain in the world, yet even they are struggling.

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Dunn's stint with the company lasted less than three years. During that time critics began to complain that Best Buy had become little more than a showroom for Amazon.com, meaning that consumers use Best Buy to try out products that they buy online later.

"I hate to be rude, but I think [Dunn] was doing a terrible job. This is a company that had a sales guy in charge and I just don't think they are well positioned to deal with the onslaught from the Internet," said Michael Pachter, analyst at Wedbush Securities. "They have a big disadvantage to the Internet retailers because they have a big cost structure. So they need a guy who can fix that rather than trying to sell more stuff."

The stock of the company has dropped more than 32 percent under Dunn's watch.

Best Buy director Mike Mikan will serve as interim CEO while the company searches for a new CEO with an understanding of ecommerce.
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