November 20, 2012

Best Buy looks to improve online revenues

Electronics retail major Best Buy is looking to bolster its online customer services to increase its online business revenues to 18% of total revenues, up from the current 7%.

By admin-demo

Electronics retail major Best Buy is looking to bolster its online customer services to increase its online business revenues to 18% of total revenues, up from the current 7%.

Plans to create greater brand awareness and differentiation from rivals is also in the works as the retailer battles declining sales in physical stores and a slugging market.

The retailer plans are part of its efforts to ensure its customers do not defect to rivals such as Amazon, Apple and WalMart.

Best Buy reported a 4.3% decline in comparable store sales for the third quarter ended October 24 with gross profit declining 11% to $731.

Gross revenues were down 5% from the corresponding period of 2011 while operating income was down a sharp 94% to $16m.

Best Buy’s net loss for the nine months period ended 3 November 2012 declined 67% to $160m, compared to $496m in the same period a year ago.

Commenting on the results Best Buy president and CEO Hubert Joly remarked that the results were unsatisfactory, as they had been for the last three years now.

"The results we are reporting today only strengthen our sense of urgency and purpose," Joly added.

Best Buy operates more than 1,400 stores in the US, Canada (Best Buy and FutureShop), Puerto Rico, Mexico and China.