They went under because the top level management was completely retarded.
Nobody price-matches online stores. It's stupid. We can price match other local retail stores, because they have the same overhead costs we do. Some toolbag selling TVs out of a warehouse in Hong Kong doesn't have those costs, and can undercut us like crazy. Best Buy doesn't price-match websites either, especially because of shipping charges. So many websites inflate their shipping charges, so that they can offer a lower price. The other day, I ordered something from a place in NJ. I paid $4.50 for shipping. I then put the exact same package in the mail, and sent it to Ontario for $2.27. Does it cost twice as much to send a package about 50 miles from the warehouse to my house as it does to send a package 500 miles to another country? Nope. And this was from a reputable website. I can go on ebay and order something for $0.99 and pay $15 for shipping. The thing actually costs $10, and shipping is $5, but by flipping it, they can make the price seem lower, and then they don't have to refund shipping if you return it. By nature, it's almost impossible for a retail store to be able to compete with an online-only store, because of overhead. If someone is ordering directly from the warehouse, obviously it is cheaper than paying for it to be shipped to the store, paying the costs of maintaining a building, and paying the costs of hiring employees, and all of that other stuff.
If you want to buy a TV without ever looking it, then buy online for cheaper. If you want to be able to actually see what the TV looks like compared to other models, and ask the employees stupid questions, and have the ability to return it, then that costs extra.
We never charge restocking fees on TVs, even if they've been opened. So, if you buy it in the store, and don't like it, you can bring it back for a full refund. If you buy it online, you have to pay shipping to you, and if you want to return it, you have to pay shipping back to the website, which could easily total $200 for a big TV.
As for wrong prices in corporate, that's a fluke, not neccessarily incompetence. Bestbuy just got a ton of publicity for their $9.99 plasma TV. In the two years I worked there, and I did the pricetags pretty much every week, there were only two misprints, and both were noticed by the staff before any customers could take advantage of them.
Yes, the website is a little cheaper. That's because the online market is more competitive than the retail market. The store would honor the online prices. I often used them as "wiggle room" when trying to make a big sale. If I had a big-ticket sale, and the customer was getting iffy, I'd offer to give them the cheaper online price, and that usually did it.