Best Buy CEO Rejects Notion Co Driving Share Via Discounting

Best Buy Co. (BBY) President and Chief Executive Brian Dunn on Wednesday rejected the notion that the consumer electronics retailer is driving its market-share gains by discounting.

Speaking during a holiday preview for the media in Manhattan, Dunn said that Best Buy intends to "bet on price points" for specific items, and stock inventory according to demand. But he said the company's emphasis on service through its Geek Squad business will help differentiate it among shoppers.

Concerns that aggressive promotions will weigh on Best Buy's profits in coming quarters have pressured shares since the retailer reported second-quarter results Sept. 15. Shares recently traded down 1.56% at $37.27.

Without providing specifics, Dunn also said Best Buy will hire more holiday workers this year than in 2008.

A recent survey by human resources consulting firm Hay Group Inc. found nearly half the nation's 25 biggest retail chains expect to hire fewer holiday workers this season than they did last year.

(Mary Ellen Lloyd contributed to this story.)

-By Veronica Dagher, Dow Jones Newswires; 212-416-2261; [e-mail]