Best Buy’s strong financial results for Q2 reflect a capitalization on demand for technology products. The recent shift to work, socializing and attending school from home has driven sales for the retailers, as they noted an impressive earning of a 16% increase in sales year-over-year.
As the quarter progressed, sales slowly started to rise, even though Best Buy stores were open for appointment only at the beginning of the quarter.
“Today, we are reporting strong quarterly results in the midst of unprecedented times. We are encouraged to see the customer demand for our products and services and are proud of the amazing execution of our teams,” said Corie Barry, Chief Executive Officer at Best Buy.
Domestic online sales also more than tripled, from 16% a year ago to 53% now. Best Buy noted this as the busiest quarter for online sales in history by a wide margin. Out of the high number of online orders, 41% of customers chose to pick up their items in-store or curbside.
This number reflects the critical need for brick-and-mortar, especially for e-commerce to succeed. Physical stores are the foundation for omnichannel models, and they are an integral part of Best Buy’s success. Their current omnichannel capabilities have helped to drive both online and in-store sales and will allow them to adapt to today’s ever-changing retail landscape.
With e-commerce frustrations and logistical costs on the rise, brands are shifting their focus on physical stores and experiential retail. Best Buy’s in-store experience serves as a major reason why many online customers are choosing to pick up their orders. Technology is at the forefront of Best Buy’s brand, which brings plenty of potential to expand their in-store capabilities and elevate them step further.
“Clearly, we are still operating in a dynamic environment, and much uncertainty remains. At the same time, we are encouraged by our clarity of purpose and our momentum, which have guided and will continue to guide our operating model changes and investments. Our purpose to enrich lives through technology is more relevant than it has ever been, and we are confident regarding our execution, adaptability and the opportunities ahead,” noted Barry.
Source: Best Buy – Press Release 8/25/20
Photo Credit: Best Buy – Company News
About Best Buy
Best Buy Co., Inc. is a provider of technology products, services and solutions. The Company offers products and services to the customers visiting its stores, engaging with Geek Squad agents, or using its Websites or mobile applications. It has operations in the United States, Canada and Mexico.