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Best Buy lets go Geeks, rubbing a little salt in the jobs data wound.
Word that Best Buy plans to let go 600 Geek Squad employees coincided with less-than-stellar jobs data . It also came one day after the release of less-than-inspiring June retail sales . (Maybe Best Buy is making room for those retention packages for senior management presiding over one of the worst performing retail stocks?)
While Best Buy cutting back on staff is nothing new — and certainly not a surprise — it may be the first of many announcements to come from retailers, especially as the holidays approach. Last year, Best Buy cut back on its plans to hire temporary staff for the Christmas holiday season, adding only 15,000 workers versus 29,000 in 2010.
Same-store sales reported Thursday were for the most part uninspiring. The good news was expectations were low. While that may have given stock prices a break, holiday hiring may not be as lucky.
Disappointing sales from Target ,Kohl's ,Costco, The Buckle and Macy's piling on top of ugly ISM manufacturing data and declining consumer confidence have to raise obvious concerns. Management teams this year might deliver a lump of coal in our stockings by taking a conservative approach and not adding extra holiday temp workers.
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