Two weeks after announcing the closing of 50 of their electronics big box stores, with the loss of 400 jobs, another job loss was announced. Brian Dunn, the co-chief executive, resigned after reports of disturbing personal conduct. According to The Star Tribune, the board of directors is investigating whether the former CEO “used company resources to carry out an inappropriate relationship with a female employee”.
Best Buy has been hard hit by the practice called “showrooming,” where shoppers come in to view merchandise while using smart phones to shop for better prices online, where they make the actual purchase. Dunn earned more than $5 million in total compensation last year according to Executive Paywatch.
The company “reported declines in same-store sales in six of the last seven quarters, including during the 2010 holiday season when it bet on technology like 3D television that was not embraced by consumers,” according to Reuters.