Best Buy experienced disappointing sales during the holiday season, and its shares declined by 27 percent.
This reflects increasing worry from investors about the future of the company.
Best Buy was struggling even before the holiday season due to competition from online stores, like Amazon.com, and discounters, like Wal-Mart.
The company decided to try a new strategy for the holiday season, led by CEO Hubert Joly. Best Buy promised to match prices for all retailers, including cheaper online rivals. However, this led to an unexpected sales decline.
There were many contributing factors to this decline, including an overall decline in the consumer electronics market.
Joly said the holiday performance renews the sense of urgency around the company’s transformation.