The recent series of disappointing results from retailers highlights what we’ve known for some time – the sector faces the toughest trading conditions in a generation.

The recent series of disappointing results from retailers combined with a number of store closures and administrations highlights what everyone in UK retailing has known for some time – the sector faces the toughest trading conditions in a generation.

There is also no doubt that while many retailers are suffering from the wider economic conditions and weak consumer confidence, they are also losing sales and share to internet retailers, which continue to grow.

This scenario has led to an interesting debate in the US where the world’s largest consumer electronics retailer Best Buy has very publicly been forced to defend itself and bricks-and-mortar stores.

The debate started shortly after Christmas when a number of US technology and business websites and publications, led by a high-profile article in Forbes, started questioning Best Buy’s business model and ultimately its long-term survival.

Some of the criticism seemed overly harsh, with the retailer’s employees being described as “annoying”, and shopping in Best Buy’s stores was summed up as a “depressing and humiliating” experience.

Perhaps because the criticism was so harsh, Best Buy’s chief executive Brian Dunn felt the need to intervene and defend his company on his blog. While Dunn acknowledged Best Buy had made some mistakes in the run-up to Christmas he hit back at those critics who believed the rise of ecommerce would make physical stores obsolete.

“This misguided perspective is especially troubling for me, because it blatantly and recklessly ignores overwhelming evidence to the contrary.” In fact, Dunn stated, the number of store visits to Best Buy stores climbed during the last quarter of 2011. While Best Buy is looking to reduce the size of US stores it considers them to be an advantage rather than a hindrance.

Dunn’s blog response prompted over 200 comments. Some were supportive, but the majority seemed to support the criticism and chastise the company for “missing the point”.

The debate will no doubt continue throughout the year. It’ll be interesting to see which side is ultimately the winner.

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