The problems start at corporate HQ. I worked there as a contractor for a few years. Getting anything done there is a huge political struggle. When I was there, at least, B&M and dotcom were two separate concerns, often with conflicting goals. Product was off doing its own thing. Everybody there seemed to forget they were all playing for the same team.
I routinely worked with MBA's from supposedly reputable schools who could put excel spreadsheets together, but couldn't interpret the results. Most full-timers spend their days in meetings while contractors do the real work. When I finally left, they offered me a few plush full time positions, in which I would have vague responsibilities and ill-defined deliverables. No thanks, I told them.
Everybody there felt pretty smug when they were kicking Circuit City's ass. Now the shoe's on the other foot.