Insights into Best Buy’s Growth Strategies With CEO, Corie Barry #LogiNextInsights
This article is a part of the #LogiNextInsights series where we bring to you insights on the secret sauce behind the world’s major brands!
- Best Buy observed a 33.2% growth in online sales for Q1, 2022 (2x growth, compared to 15% in Q1, 2020).
- Compared to 2021, the sales growth observed was 37.2%, with significant contributors being- home theater, computing, and appliances.
- Implementing a ship-from-store hub model to handle the online order fulfillment helped drive 70% of online orders directly from the stores.
Best Buy has been in the industry for over 55 years, which started as an audio specialty store (name Sound of Music in 1966), was renamed Best Buy in 1983, and focused on consumer electronics. Best Buy was ranked number three on the retailer category list as per the Fortune report. As Best Buy beat the pandemic slowdown, here’s what its CEO, Corie Barry had to say about its future growth.
Same-day delivery solutions
The post-pandemic era saw a rise in online orders (33.2%), which brought in $3.60 billion in the quarter. For powering faster deliveries, Best Buy’s CEO, Corie Barry, implemented the strategy of having the store employees deliver the packages. “The employees were provided company branded vehicles and trained to ensure smooth deliveries during their shifts,” stated Berry. This helped Best Buy “up” same-day deliveries by 90%, a home-delivery plan that did not run well for Walmart.
Changes to store layouts
Best Buy has reorganized its store warehouses to ensure they are closer to curbside pickup. The main focus is reducing in-store storage space and assigning them for ship-from-store deliveries and in-store pick-ups. Best Buy is still experimenting with its hub looks, so they want to minimize the shopping space from 20,000 square feet to 15,000 square feet.
Best Buy has found the best strategy to reach customers: physical stores, eCommerce, and in-home service. Besides physical shopping and product demonstrations, Best Buy stores serve as service centers (undertaking repairs), fulfillment centers for eCommerce, and order pick-up and return locations. With such a range of services offered, Forbes states no other retailer currently matches such operations. Best Buy has over 80,000 cross-trained employees and over 20,000 high-skilled geek squad agents for impeccable customer service.
Handling festive order surges
To ensure no disruptions in the supply chain, Best Buy extended its sales period; this helped customers with more participation time and avail the best offers while guaranteeing a constant check on inventory to handle order surges during festive seasons. Best Buy has tied up with TAGG Logistics for omnichannel order fulfillment.
The future of eCommerce and retail stores, as a matter of fact, for any logistics provider, AI-powered automation is the future to stay relevant in the business. LogiNext offers a world-class logistics automation solution currently being used by 200+ enterprise customers, including Decathlon, 7Eleven, and more, for automating end-to-end logistics needs.
Stay tuned to read more insights on companies that tend to retail, eCommerce, F&B, transportation, CEP, and more.
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