An end in sight for big-box stores?

TAMPA - You know the scene: Black Friday at Best Buy, with thousands of people lined up outside waiting to get a great deal.

The store is buzzing. The lines are painstakingly long.

But did you know: With millions shopping online, some retail stores reported a decline in December sales, and that has some economists predicting the end of big-box stores, such as Best Buy.

“That’s where I go shopping, and it looks like they have so much money,” shopper Kelly Quinonez said. “Why would they close?

The answer is simple: Online shopping.

Hundreds of big-box stores are closing, and that means it’s going to change the way people shop. Best Buy says it’s staying around, but it is going with new, smaller stores.

All the while, online sales are up, with Amazon reporting sales have increased up to 40 percent in the latest quarter.

"We go into Best Buy to buy a computer product, or whatever it is,” economist Rodney Johnson said. “If we believe we're going to get a better price online, we may look at it there, but then we'll go online and make our purchase."

That’s called “Show Rooming,” getting a feel for a product in-person and buying it online. On some occasions, buying larger items are cheaper and easier online.

"People are doing that comparison shop,” Johnson said. “Would I rather have it sooner, or would I rather have it cheaper? Well, cheaper is winning a lot."

Big-name stores like Sears, Kmart and Borders have closed hundreds of big-box stores nationwide. Barnes and Noble recently announced losses last year – twice as large as previously expected.

And despite those Black Friday crowds at Best Buy, its share price is down 25 percent, causing big changes in the company.

“There are growing pains,” Best Buy’s Lee Wilson said. “Let’s get that right.”

"When it comes to large-square footage, we've gone to a community model,” Wilson said. “So we're slimming down some stores. We're testing the waters and trying to adapt."

Best Buy hasn’t opened one of its bigger stores in years. It is, however, launching Best Buy Mobile.

"With big business, it's all about evolving with the times, seeing what opportunities lie and moving on from technology that's kind of dead,” Wilson said.