Why It Ranks #9
Best Buy was the consensus pick for 'next company Amazon kills.' Hubert Joly proved that physical retail could thrive alongside e-commerce by turning stores into experiential showrooms and fulfillment hubs.
The Downfall
Amazon's growth turned Best Buy stores into free showrooms. Customers tested products in-store then bought online. The stock crashed from $45 to $11, the CEO resigned in scandal, and analysts predicted bankruptcy.
The Comeback Move
Hubert Joly matched Amazon's prices, created store-within-a-store partnerships with major brands, invested in employee expertise, and turned stores into omnichannel fulfillment centers. He proved physical retail had advantages Amazon couldn't replicate.
Key Numbers
Low Point
$11/share (2012)
Peak After
$130+/share (2021)
Revenue Swing
Stabilized at $43-47B annually
Store Strategy
From showroom to fulfillment hub
The Full Story
By 2012, Best Buy was considered a dead company walking. Amazon was eating its lunch. Customers would browse Best Buy's aisles, test products in person, then pull out their phones and order from Amazon at a lower price -- a practice so common it got its own name: 'showrooming.' The stock dropped from $45 to $11. The CEO resigned amid a personal conduct scandal. Analysts unanimously predicted bankruptcy.
Hubert Joly, a French-Minnesotan executive with no retail experience, took over as CEO in September 2012. His first week on the job, he worked as a sales associate in a Best Buy store in St. Cloud, Minnesota. What he learned shocked him: employees were the company's greatest untapped asset, and the store experience could be a competitive advantage if managed properly.
Joly launched 'Renew Blue': he matched Amazon's prices (ending the showrooming problem), created store-within-a-store partnerships with Samsung, Apple, Microsoft, and Sony, invested in employee training, and turned stores into fulfillment centers for online orders. Best Buy's stock went from $11 to over $130. The company that everyone said Amazon would kill became one of the great retail turnaround stories of the century.
Fun Facts
Joly's first week was spent working the sales floor at a store in St. Cloud, Minnesota. He wore the blue polo and nametag. Customers had no idea he was the CEO.
Best Buy's Geek Squad, once considered a joke, became a major competitive advantage. Amazon can ship you a TV but can't mount it on your wall.
Samsung pays Best Buy rent to operate Samsung Experience Shops inside Best Buy stores. The stores went from a cost center to a revenue generator.
Lessons Learned
Physical retail isn't dead -- bad retail is dead. Great experiences and knowledgeable employees can compete with Amazon.
Price matching eliminates the 'showrooming' problem instantly. If the price is the same, customers prefer to buy in person.
An outsider CEO with fresh eyes can see opportunities that industry veterans miss.
Frequently Asked Questions
What makes a great business comeback?
A great business comeback requires a genuine existential crisis, a decisive strategic pivot that addresses the root cause, and measurable results that exceed the company's pre-crisis performance. The best comebacks transform the company into something far more valuable than it was before.
Can a company recover from bankruptcy?
Yes. Many of the greatest comebacks in business history involved bankruptcy. Marvel went from Chapter 11 to a $4 billion Disney acquisition. GM emerged from the largest industrial bankruptcy ever and became profitable within two years. Bankruptcy is restructuring surgery, not death.
What role does leadership play in turnarounds?
Leadership is almost always the decisive factor. Steve Jobs saved Apple. Satya Nadella transformed Microsoft. Lee Iacocca rescued Chrysler. The common thread: great turnaround leaders simplify, focus, and execute with urgency.
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