Best Buy’s (BBY) revenue grew 1.7% to $42.9 billion in fiscal 2019.[1.ended February 2] The company’s overall same-store sales grew 4.8% in fiscal 2019, and its domestic and international same-store sales grew 4.8% and 4.6%, respectively. Best Buy expects fiscal 2020 revenue of $42.9 billion–$43.9 billion and same-store sales growth of 0.5%–2.5%, based on console gaming’s expected cyclical slowdown and mobile phones’ maturity.
Best Buy sees further opportunities in large-screen home theaters and 4K, 8K, OLEDs,[2.organic light-emitting diodes] and foldable phones. Smart home technology is a vital growth area for Best Buy.
Best Buy aims to continue to focus on its service business to deepen customer relationships. The company’s Total Tech Support program, which has gained a lot of traction, ended fiscal 2019 with over 1 million members. The program provides members with Geek Squad support for all product issues customers may have, regardless of where or when the products were bought.
Best Buy’s in-home advisor program, another attractive service offering, provided over 175,000 free in-home consultations to customers last year. Best Buy expanded the number of advisors under this program from 300 to about 530 in fiscal 2019. Such services have higher gross margins and boost revenue and profitability.
Best Buy has continued to enhance its online channels to give customers a better shopping experience. It has been increasing online orders’ speed of delivery to customers and expanded its next-day and same-day delivery facilities to 60 and 40 metro areas, respectively.
Best Buy is also keen on growing in the digital health space. Last year, it acquired GreatCall, a provider of connected health services for the aging population.