What's Brewing in the Consumer Electronics Space?

What's Brewing in the Consumer Electronics Space?

www.rothmanresearch.com -- With the U.S. economy still flirting with a slow recovery and a number of uncertainties, businesses across the different sectors have shown some signs of improvement in the recent quarter, but many still threw in some pretty stale to negative outlook for the remainder of 2010. This coming Friday will be a key trading session with the fundamental June jobs figures hitting the wire pre-market. Economists fear that data could be shifting towards the bear caves, and this could be a spoiler not just for the long weekend as Americans get ready for Independence Day, but for next week trading sessions as investors might drop their bullishness and put on their bear's fur. To add to the suspense, the whole of next week will see releases of several crucial economic reports. It remains to be seen whether starting this Friday, investors and the whole economy will be entering a mine field or a bed of roses (full of thorns and yet a dose of hope). Amidst the string of economic data due to be released, the consumer electronics space is seeing some exciting developments.

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Word is out that competition between Best Buy Co. Ltd. and GameStop Corp. is getting serious this summer. Best Buy has indeed literally opened its doors to gamers who wish to trade in used games for Best Buy gift cards. Best Buy, the prime U.S. specialty retailer in consumer electronics, has certainly caused a stir in the electronics store sphere as its new marketing strategy directly plans to target the highest-margin segment of some of its competitors, the largest of those being GameStop, the U.S. largest video games and consoles retailer.

*Free downloadable research reports on Best Buy Co. Inc. and GameStop Corp. are available by signing up now at http://www.rothmanresearch.com/article/bby/23624/Jun-28-2010.html or http://www.rothmanresearch.com/article/gme/23625/Jun-28-2010.html

The company is also making great strides with its Best Buy Mobile stores. However, Best Buy shares have been on a freefall since its most recent quarterly earnings release which missed analysts' estimates. Whilst many electronic stores are looking forward for positive summer sales figures, the upcoming economic data could well be the catalyst that would either boost or break investors' confidence in the economic recovery and its impact on discretionary spending.

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