Best Buy Store Changes a Sign of Times, But Also the Category

From what I see happening at Best Buy: according to a NY Post (ugh) report -- normal technical store employees are being laid off in a push to eCommerce.

While the story is an "eCommerce eating retail" story, I feel that story is a half-truth, and doesn't explain other forces going on.

The moves are tied to profitability, clearly. But I thought Best Buy was one of the survivors in the last ten years due to extended warranties and other profitability pushes?

Also, Isn't this a little bit the opposite of the REI model?

REI employs experienced employees with various aspects of camping, hiking, biking to help customers make decisions and select the right product?

Well, yes.

The reason is category gross margins. Electronics are very low-margin product and to treat them like a high-margin considered purchase with expensive store associates is challenging to do forever.

What I found the last time I walked into a Best Buy was a different experience: manufacturer-sponsored employees. It felt to me like the cost of store employees was being pushed to manufacturer... because well it could.

These details can be combined with other obvious facts:

First, Amazon is the behemoth in electronics, so you are competing with them at all times.

Second, consumers are coming in having read dozens of reviews and have more technical questions than your average store employee can answer.

So the only way to combat that is to push these costs off to the manufacturer -- have them station representatives in the stores. This has two benefits for Best Buy.

One, you need fewer store representatives in highly technical departments. These are likely the hardest roles to train and retain.

Two, you push all these costs onto your brand partners who actually have the detailed technical knowledge to understand why last year's model was different than this year's model. This is something an average store employee can usually not tell you.

Of could I could be wrong, but that sounds like a win-win for Best Buy really.