Is Best Buy Really Rebounding?

POWAY, CA—Electronics retailer Best Buy has signed a $3.2-million lease with Techbilt Cos. for its newly constructed industrial building at 11885 Community Rd. in Poway Corporate Center here. The developer built the building, along with 11895 Community Rd., on spec, and both were 100% leased prior to the completion of construction.

The move by Best Buy is interesting due to the wave of speculation about the retailer’s imminent demise. American Trade Journal reported over the weekend that the retailer’s stock  “has dropped 2.66% during the past week; however, the bigger picture is still very bullish; the shares have posted positive gains of 1.56% in the last four weeks. The shares have underperformed the S&P 500 by 1.32% during the past week, but Best Buy Co. Inc. has outperformed the index in four weeks by 4.58%.” In addition, on September 25, Forbes reported that Macy’s recently announced that it would open Best Buy stores in 10 of its stores in undisclosed locations across the country. These moves indicate that the retailer could actually be rebounding.