...Defending Market Share: Best Buy Co., Inc. (Best Buy) has defended its market share against the onslaught of competitive pressures from e-tailers and discounters with significant investments to improve its price perception and reconfigure its physical and online platforms over the past two years. While Best Buy's domestic comparable store sales (comps) are expected to be flat in 2014 due to strong online growth offsetting lower sales in stores, Fitch Ratings expects comps to be in the negative low single digits in 2015 given overall industry weakness. Investments Pressure Results: Fitch expects EBITDA to be $2.0 billion¡$2.1 billion in 2014, modestly higher than 2013 as cost reductions essentially funded the price investments. However, industry headwinds remain and a majority of Best Buy's product categories are in a secular decline. As a result, Best Buy will need to make incremental investments to remain price competitive and improve the store and online experience, putting pressure on...
