Why Is Best Buy So Bad?

As the president of a business school, I choose the courses I teach, and one of my favorite courses is customer service. I always look for good and bad examples of customer service to share with my students. I want to share an experience I had at Best Buy in 2015 and what I learned about the business.

I attempted to exchange an iPhone case that my sister had given me for Christmas. She bought the case at Best Buy on the sales clerk’s recommendation. She asked for the best case they had for the iPhone 5. The clerk showed her one labeled iPhone 5/5S, and since it was labeled for the iPhone 5, she assumed it would fit my phone. I did not try it on the phone for several weeks after she gave it to me. When I did try the case, it did not fit. My phone is an iPhone 5C, and even though the box is labeled for an iPhone 5, it did not fit. 

Over the next few months, I visited Best Buy several times to make various purchases, but I forgot to bring the case with me each time. We recently needed a flat-screen TV in one of our classrooms, so I went to Best Buy to purchase one, as I had many times before. This time, I finally remembered to bring the case with me. I went to the customer service desk and requested an exchange of the case. The clerk told me to select the one I wanted. As I reviewed the available items, another clerk approached me, handed me the case I intended to exchange, and stated that I could not return it because it was past the 15-day return period. I told him I didn’t want to return the case; I just wanted to exchange it. He said it didn’t matter; it was past the return period. I asked him if losing a customer for life was worth this. As he was walking away, he flippantly said, “Yes.” 

I returned to customer service and asked to speak to the manager. I informed him of what had just happened and asked whether it was worth losing a customer for life to avoid exchanging the case. Without commenting on the second clerk’s conduct, he said, “I’m sorry, but there is nothing I can do.” 

I have been in business for over 40 years. It has been my experience that frontline people closely reflect their superiors’ attitudes, so I felt pretty confident that complaining to senior management would yield the same indifferent response. I was not disappointed. 

I visited the Better Business Bureau website to submit a review. I reviewed numerous negative reviews to understand what to expect. I observed the same indifference as was reflected in the store. I filed my complaint and received a boilerplate apology for the inconvenience, but they were sticking to their policy. (Editor’s Note: The review I filed, as well as all the other negative reviews, have been removed, and now Best Buy has an A+ rating and no negative reviews, which tells you that if a company throws enough money at the Better Business Bureau, they will protect your rating. See the current BBB listing. 

Note: The following information has been updated to reflect 2011-2025.

Best Buy has demonstrated that it does not prioritize its customers at every level. I then wondered whether I could find any evidence that this policy was damaging their business, to show my students the folly of allowing people without direct customer contact to set customer service policies. 

What I found surprised even me. Usually, definitive evidence of the effects of poor customer service is difficult to find, but in this case, it was pronounced. Although the evidence was compelling, other factors could be in play. How did Best Buy’s competitors perform during the same period? Were there factors affecting the entire industry that would account for a decline in sales? The answer was a resounding no! 

I researched Best Buy’s major competitors on Yahoo Finance and identified Apple, Inc., Wal-Mart Stores, Inc., and Amazon.com, Inc. A quick review revealed what I wanted to know: Best Buy’s treatment of its customers drove customers to competitors in significant numbers. 

Best Buy has faced significant challenges since 2011, including intense competition from online retailers such as Amazon, shifting consumer preferences toward e-commerce, and internal issues, including inconsistent customer service. Poor customer service, manifesting as understaffed stores, unhelpful interactions, diluted loyalty programs, and a shift from premium experiential retail to commodity pricing, has exacerbated these pressures. This has led to customer attrition, particularly among high-value buyers who seek better service elsewhere (e.g., Crutchfield or Costco). Analyses indicate that in-store indifference, long wait times, and staff redirecting customers to self-service tools (e.g., QR codes) have contributed to declining foot traffic and sales, prompting store rationalization. Below, I outline the impacts on the specified metrics, drawing on available historical data. Note that while customer service is one factor among many (e.g., economic downturns, tariffs), reports link it directly to loyalty erosion and financial strain.

To contextualize Best Buy’s challenges with poor customer service since 2011, this comparison examines Amazon, Walmart, Bed Bath & Beyond (BBBY), and Apple across the same metrics: store closings, % sales decline (via revenue YoY % change), diluted EPS, NPS, and EBITDA. These retailers operate in overlapping categories (electronics, general merchandise, home goods) but differ in scale and strategy—for example, Amazon’s e-commerce dominance versus Best Buy’s hybrid model. Data are fiscal-year aligned where possible, with NPS being more sporadically reported. Best Buy’s service issues have contributed to its relative underperformance, while Amazon and Apple show resilience through innovation and loyalty. BBBY’s bankruptcy in 2023 highlights acute vulnerabilities similar to those of Best Buy but exacerbated by debt and inventory issues.

Note: The squiggly line in front of a number, like this: ~45, is called a tilde. In everyday writing (especially online, in articles, forums, and casual reports), it means approximately or about.

Store Closings

Store counts reflect the evolution of physical footprints: Best Buy and BBBY contracted sharply due to e-commerce shifts and service gaps; Walmart expanded steadily; Amazon grew modestly through acquisitions (e.g., Whole Foods); Apple optimized for experiential retail.

Key Insights: Best Buy closed ~700 stores (-39%), BBBY ~1,090 (-99%, post-bankruptcy relaunch minimal). Walmart +10%, Amazon/Apple stable/growth-focused.

% Sales Decline (YoY Revenue Change)

Best Buy experienced post-2022 declines linked to service erosion; Amazon/Walmart/Apple showed consistent growth, mitigating economic pressures through diversification.

Key Insights: Best Buy cumulative -16.5% from 2011; BBBY -87% peak-to-trough. Amazon +1,340%, Walmart +53%, Apple +226%.

Earnings Per Share (Diluted)

EPS reflects profitability per share: Best Buy is volatile/declining; Amazon/Apple has explosive growth; Walmart is steady; BBBY is negative post-2021.

Key Insights: Best Buy peaked in 2022, then -56%; BBBY swung to losses. Amazon from $0.10 to $5.53 (+5,430%); Apple +654%.

Net Promoter Score (NPS)

NPS tracks loyalty: Best Buy is volatile (service dips); Amazon/Apple consistently high; Walmart is middling; BBBY is low/declining pre-bankruptcy.

Key Insights: Best Buy rebounded to 43 (above retail avg. 37); Amazon 47; Apple 48; Walmart 7; BBBY -52 (post-relaunch challenges).

EBITDA

EBITDA measures core profitability: Best Buy declined post-2022; Amazon/Apple surged; Walmart remained stable; BBBY declined.

Key Insights: Best Buy -22% cumulative; BBBY to negative. Amazon +6,300%, Apple +328%, Walmart +27%.

In summary, Best Buy’s service-driven declines contrast Amazon/Apple’s loyalty-fueled growth and Walmart’s scale stability, while BBBY’s collapse underscores risks of inaction. Best Buy’s recent NPS uptick signals a potential recovery driven by service investments.

In summary, their sales will continue to decline until Best Buy and other businesses recognize that they must treat their customers as individuals with distinct needs and expectations. Bean counters NEVER realize how poor customer service can decimate a company as they make their cuts to shore up the bottom line. The lesson here is to value your customers and never treat them so poorly that you lose them permanently.

Since 2015, I have purchased more than $30,000 in computers, laptops, and monitors for my business, none of which were purchased from Best Buy, so ask yourself, was it worth losing my business for life to avoid exchanging a phone case?