Best Buy’s (BBY) same-store sales grew 5.6% in fiscal 2018, which ended on February 3, 2018. The same-store sales growth in fiscal 2018 was a major improvement compared to the 0.3% growth in fiscal 2017. The company’s overall revenue grew 7.0% to $42.2 billion in fiscal 2018. Best Buy benefitted from various initiatives taken under its Renew Blue transformation strategy that began in November 2012. After the completion of its Renew Blue strategy, the company commenced its new strategy called “Best Buy 2020.”
Initiatives under Best Buy 2020
The company’s Best Buy 2020 strategy aims to expand its product offering and evolve the way the company sells products to customers. The company plans to focus on growth categories like smart home. Best Buy is expanding its product assortment and services within the smart home category to capture the growth prospects in this business. Best Buy partnered with Vivint in 2017 to strengthen its position in the smart home market. In its September 2017 investor conference, Best Buy disclosed its plans to enhance the smart home areas in all of its stores and to provide the Best Buy Smart Home Powered by Vivint home automation and security program to 450 stores. The company’s growth plans also included the addition of 1,500 dedicated smart home employees.
Services are a major tool that Best Buy uses to deepen its relationship with customers. The company has expanded its In-Home Advisor program to all major US markets and plans to ramp-up this program in fiscal 2019. Under this program, the company’s specially trained advisors provide free in-home consultations to customers to help them in finding the right technology solutions.
The company is also planning a nationwide launch of its Total Tech Support program this spring. Best Buy launched its Total Tech Support program, a new Geek Squad offering, in 2017 to provide support to the customers’ technology, regardless of where and when they purchased it. This service is available to customers via the online channel, in-store, and on their phone at an annual price of $199.
Best Buy’s online revenue has more than doubled over the past five years. In fiscal 2018, the company’s online revenue grew 21.8% to $6.0 billion. Expanded merchandise offerings and facilities like “buy online pick up in store” helped in boosting online revenue. The company wants to further grow its online business through various initiatives including continued improvement of search functionality and additional services like curbside pick-up.