EDEN PRAIRIE, MN – Best Buy slashed its earnings forecast this week for the second half of the year, blaming price competition from Circuit City and discounters, a slowing economy, and disappointing results from its 40 new New York stores and its revamped Web site. Officials at the Eden Prairie-based consumer electronics company said it expected its profit in the third quarter ending Nov. 25 to fall to about 27 cents a share from 37 cents a year earlier.

Best Buy also said a slowing U.S. economy has forced it to lower prices to attract consumers. Some products have become more widely available – DVDs are now on sale at Wal-Mart and Target – and retailers are competing fiercely to win customers, Best Buy said. But Best Buy is not backing off plans to build from 60 to 65 new stores next year.

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