Best Buy CEO Brian Dunn announced Tuesday that he is stepping down from his post. Board member G. Mike Mikan will take over as interim chief executive. This comes as sales dropped 2.4 percent in the last quarter.
A showroom for Amazon.com? Perhaps. But despite the staggering sales numbers, executives at Best Buy do not share any bad blood, disagreements over operations and policies or negative feelings towards Brian Dunn, who has been CEO of the struggling electronics company for three years.
In a press release Tuesday, Dunn announced that he was resigning from his position. It was a mutual agreement between Dunn and his colleagues that it was time for new leadership at Best Buy in order to address the many challenges that the electronics retailer faces.
“I have enjoyed every one of my 28 years with this company, and I leave it today in position for a strong future,” said Dunn. “I am proud of my fellow employees and I wish them the best.”
Board member G. Mike Mikan will become the interim CEO until a permanent replacement is found.
“We thank Brian Dunn for his many years of service to the company and wish him well in his next endeavors,” said Richard Schulze, founder and board member, who continues to serve as chairman. “As we move forward, we are very pleased to have a strong leader with Mike Mikan's credentials as interim CEO.”
For several consecutive quarters, Best Buy has fallen short of expectations. In the last 18 months, the company’s same-store sales in the United States declined 2.2 percent. Sales dropped a total of 2.4 percent in the last quarter alone.
In the morning trade at the New York Stock Exchange, Best Buy shares rose 10 cents to $22.75.
Digital Journal reported last month that the company was going through a restructuring phase where it was looking to save $800 million by the fiscal year 2015. As part of its initiative, it announced that it was shutting down 50 big box retailers, cut 400 jobs in the corporate and support departments and open 100 mobile locations.