Best Buy, Bed Bath & Beyond 'not going to do well' in this environment -CIO

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STORY: Best Buy reported a smaller-than-expected drop in quarterly comparable sales on Tuesday as steep discounts helped soften the blow to electronics demand from rampant inflation.

But Spika said the retailer "can't live off discounts forever," adding that U.S. consumers will continue to be hurt by high inflation.

Best Buy also said on Tuesday that consumers stung by decades-high inflation are not shifting to cheaper smartphones.

Spika said that bodes well for Apple Inc's upcoming iPhones likely to be unveiled next week, calling the smartphones "more of a utility than a discretionary item."