Today Best Buy reported its first quarter earnings. Despite the general softness in demand that our industry is seeing, we have achieved very strong results that every Best Buy employee can be proud of. It’s especially exciting to see that we continued to grow our market share. In fact, we had a gain of 200 basis points from February to April, and we are seeing that share gain continue.
Arguably, some of that pick-up came from Circuit City shuttering its doors, but only some. People have choices when they shop for consumer electronics, so it’s encouraging to see that our blend of service, selection, value and price is drawing a growing number of them to Best Buy and our brand promise. Over the weekend I blogged about bringing “Dream Support” to life. I believe it is the promise of “Dream Support” that will fulfill an increasingly unmet need in the market. One reason goes back to the numbers. Some of our biggest share gains over the past quarter were in big-screen TVs, computers and mobile phones – all products where customers have a lot of questions and often a little anxiety, which our Blue Shirts can handle better than any competitor can. Overall, our numbers say that our strategy is on track as we continue to keep fighting for every customer in a challenging and competitive market.
Congrats on the Q1 results, quite an accomplishment in this economy…like the new Magnolia shop within the store on Elston here in Chicago.
It is easy to be number one, or have massive growth when you have no competitors. None of your brands cross shop other companies. No price matching, no problems. Just a thought.
I used to buy all of our computers cameras, anything tech related from your store. Since the purchase of the Gateway computer, sevral years ago, for my son, I paid nearly 2 grand for a complete package that he was so excited about, with all the amenities, the whole thing is dead now, and I can;s afford to replace it. It’s not the internet connection, it’s not the electricity, he made his last computer last 10 years!!! I made this computer last 10 years(sony vaio) That Gateway was a piece of crap and your store sold it to us hook line and sinker. I guess it’s our tough luck and you are very sorry? Hah! We should have bought a service plan? hah? Ok yeah..I’m a 55 yr old single parent and my 27 yr old is disabled, (vision impaired) in college, Towson U and I pay for it on a Montgomery County Government Md. Nurses salary. Sorry again. I can’t afford to buy him a new computer. I can’t even afford to buy myself a new one. Your crappy company sells crappy products. next time I buy another computer I’ll go directly to the sony site and buy it.
I’ve seen first-hand Best Buy’s commitment to staff training and how it pays off as great store experience. It’s ingrained in the culture and Dream Support sounds like a good encapsulation of the ethos. BBY is light years ahead of other CE retailers, globally – congratulations on good numbers.
The era of big box stores are drawing to a close – especially in electronics. Simple retail will not cut it in the near future. As more shoppers enter the buying market who are more comfortable with the e-commerce market, Best Buy will have to offer something that e-commerce cannot – hands on testing, playing and information services. Look at the new Bass Pro World’s or REI in Seattle – or even the Apple stores – they are all retail areas that have become attractions. Instead of just shopping – visitors are experiencing the wares.
Imagine a Best Buy where you can see all of the items you want in action, use them, play with them, ask questions about them – not just the electronics, but the appliances. Instead of just having stoves and ovens and refrigerators and blenders available on shelves – have cooking classes using the items. Don’t tell people why they are indispensable – any web site can do that – SHOW them.
Take a page from the Michigan Avenue Apple store – set up a theater (25 – 30 seats) and run classes – all day. Basic e-mail, advanced Photoshop, setting up home wifi, synching laptops and desktops, using the mobile web, cooking the perfect souffle, setting up your dream home theater – whatever.
The use of theater, of training, of classes combines retail with learning, retail with entertainment – makes Best Buy a destination rather than a chore.
That is terrific. I really like the things you are doing around social media.
Personally, I love the ad that takes on Wal-Mart head on. We have to continue to show the market that we offer more value and one to one interaction than anyone else in the business. The ads have been spilling into Canada quite a bit recently and the feedback I receive has been very positive, even wondersing if we will run them or the same idea in Canada.
Twitter Comment
RT @GeorgeDearing I still don’t get why C-Level execs don’t blog / from Best Buy’s CMO ([link to post]) (Right there with you George!)
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