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Why the best buy in the Amazon era remains relevant




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Best Buy looks self-made Amazon Proof. (Photo by Stephanie Keith / Getty Images)

At Paris Drones Parrot introduced its new folding and lightweight Anafi drone in the US in July, there were only two places where consumers could find the $ 699.99 gadget outside their own website: Amazon and Best Buy, and that was on purpose.

"Amazon is an enormously large ecommerce platform, and Best Buy is a hugely huge trading platform," said Michael Luke Paris, general manager of Parrot Americas, in an interview explaining why Parrot is using its previous strategy, with more "Our retail strategy approach has been adjusted so that sales are more focused to focus our marketing spend. " Best Buy is the main retailer of consumer electronics and our training with its staff has increased D. We ensure that both Amazon and Best Buy have sufficient volumes and we try to balance both equally." [1

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Since specialty retailers like Toys "R" Us and The Sports Authority are out of business – and are struggling with the largest US book retailer, Barnes & Noble, – Parrot's new distribution strategy shows why Best Buy has proven to be viable in stationary Retailers even in a category that has experienced a much earlier and faster shift to online shopping

Amazon.de
.


Best Buy
reported better-than-expected second-quarter earnings on Tuesday, boosted by a 6% rise in comparable businesses in the US, the Best Buy market, well over 90% of the $ 9.4 billion in the second quarter The turnover. Best Buy said customer visits to stores and online have increased, as has the conversion rate, which refers to those shopping online or in stores that made a purchase. Best Buy said it has gained market share in all categories. The company has also raised its outlook for the year.

Certainly, The Best Buy & # 39; earnings forecast for this quarter missed Wall Street's consensus estimate, dropping stocks by more than 4% to hit a record high on Thursday. Q2's slower growth in the online and other sectors also caused concerns, and the company said it was watching the tariffs closely, even though it does not have much of a negative impact yet.

Best buy, like many other retailers, increasingly increase their market share at the expense of profit and see a reduction in gross margin at higher shipping and supply chain costs. It expects these costs to continue to weigh on its profit margin. There is also concern that as more gadgets are widely distributed, Best Buy may lose its share of the mass market competitors, including Walmart and Target.

Euromonitor data suggest that the battle for market share is intense. Even if major rivals like Hghegg and RadioShack closed their shops, Best Buy's share of electronics and home appliance retailers, including Best Buy's smaller Best Buy Mobile, rose only slightly to 35.9 in 2017 Best Buy's share rose to 1.7% from 1.4% over the same period, according to Euromonitor.

But under CEO Hubert Joly has billed Best Buy, With over 1,000 large stores, as a place where consumers can go shopping and get help with consumer electronics and the growing smart home offering – all Hoping to build what the company has described a "sticky" relationship. To alleviate consumer concerns about price differences, Best Buy has announced price guarantees.

The company has worked with Apple and Microsoft brands to build boutiques, and has invested more in what Joly calls "special work" to better help customers. Another sign of its special importance in the electronics industry: Amazon has also introduced its new Fire TV Edition smart TVs exclusively through Best Buy.

"This partnership is a great example of how we leverage our unique merchandising, marketing and sales resources to help leading technology companies market their new products," Joly said at the company's earnings statement Tuesday. "We are building an enhanced and unique customer experience."

On the service side, which the company hopes to increase related product sales, Best Buy introduced a $ 199.99 Total Tech Support membership in May to provide online support. in business or by phone, regardless of when and where consumers have purchased a product. In an indicator of potential growth, 80% of the approximately 270 reviews on BestBuy.com rated the service as five stars and 93% recommended it.

Best Buy has also introduced a free in-house consulting service. In August, the company agreed to purchase GreatCall, a provider of mobile products and related services for the elderly, to meet the needs of the growing aging population in the US and expand into the health and wellness category. Joly described the acquisition as "a Best Buy bridgehead in health care," which could provide a gateway to more growth opportunities.

Comparable service sales increased 6.6% in the quarter, up faster than 1.5% in the prior year

Comparable device sales increased 10%, while in the Computers and Mobile Phones category – Best Buy's largest product segment – more than two fifths of total comparable sales rose 4.2%, a slower growth rate from a year earlier. Other major sales drivers included home theaters, games, mobile phones and smart home categories, which compensated for declines in tablets and digital cameras.

Online sales increased 10% after a jump of 31% the year before. Joly tried to ease concerns about the slowdown and noted that Best Buy's online turnover has doubled to about 15% of its total domestic sales over the past five years, a rate higher than other traditional brick-and-mortar retailers , While other retailers, such as Gap's Old Navy, have recently introduced online pick-up orders in the store, Best Buy has been at the forefront of developing its stores, offering this service for more than 10 years, and all its stores were able to process and send online orders since 2014.

The Best Buy result is "another indication of the underlying performance of today's significantly more powerful omnichannel business model," said Oppenheimer analyst Brian Nagel on Tuesday in a report. "We are very impressed and encouraged by Best Buy's improved strategic positioning."

Best Buy seems to have proven to be an Amazon proof.

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Best Buy Looks Homemade Amazon Proof (Photo by Stephanie Keith / Getty Images)

As the Parisian drone manufacturer Parrot Only two consumers were able to find the $ 699.99 gadget outside its own website: Amazon and Best Buy, and this was intentional.

"Amazon is a huge one big e-commerce platform, and Best Buy is a hugely large retail platform "Michael Luke Paris, general manager for Parrot Americas, said in an interview, why Parrot of his previous strategy to work with more retailers in the product launch , has deviated. "Our retail strategy approach has been adjusted to focus sales more to focus on our marketing spend.

" Best Buy is the main retailer of consumer electronics. Our training with their staff has increased. We ensure that both Amazon and Best Buy have sufficient volumes. We try to distribute both equally. "

When retailers like Toys" R "Us and The Sports Authority had to give up – and Barnes & Noble, the largest US specialty book retailer, struggling – presents Parrot's new distribution strategy. That's why Best Buy has itself in a category where the shift to online shopping was completed earlier and faster, proved to be a viable stationary retailer

Amazon.de
.


Best Buy
reported better-than-expected second-quarter earnings on Tuesday, boosted by a 6% rise in comparable businesses in the US, the Best Buy market, well over 90% of the $ 9.4 billion in the second quarter The turnover. Best Buy said customer visits to stores and online have increased, as has the conversion rate, which refers to those shopping online or in stores that made a purchase. Best Buy said it has gained market share in all categories. The company also raised its outlook for the year.

Certainly, Best Buy's earnings forecast for […] for this quarter missed Wall Street's consensus estimate, dropping stocks by more than 4%, a record high on Thursday. Q2's slower growth in the online and other sectors also caused concerns, and the company said it was watching the tariffs closely, even though it does not have much of a negative impact yet.

Best buy, like many other retailers, increasingly increase their market share at the expense of profit and see a reduction in gross margin at higher shipping and supply chain costs. It expects these costs to continue to weigh on its profit margin. There is also concern that as more gadgets are widely distributed, Best Buy may lose its share of the mass market competitors, including Walmart and Target.

Euromonitor data suggest that the battle for market share is intense. Even if major rivals like Hghegg and RadioShack closed their shops, Best Buy's share of electronics and home appliance retailers, including Best Buy's smaller Best Buy Mobile, rose only slightly to 35.9 in 2017 Best Buy's share rose to 1.7% from 1.4% over the same period, according to Euromonitor.

But under CEO Hubert Joly has billed Best Buy, With over 1,000 large stores, as a place where consumers can go shopping and get help with consumer electronics and the growing smart home offering – all Hoping to build what the company has described a "sticky" relationship. To alleviate consumer concerns about price differences, Best Buy has announced price guarantees.

The company has worked with Apple and Microsoft brands to build boutiques, and has invested more in what Joly calls "special work" to better help customers. Another sign of its special importance in the electronics industry: Amazon has also introduced its new Fire TV Edition smart TVs exclusively through Best Buy.

"This partnership is a great example of how we leverage our unique merchandising, marketing and sales resources to help leading technology companies market their new products," Joly said at the company's earnings statement Tuesday. "We are building an enhanced and unique customer experience."

On the service side, which the company hopes to increase related product sales, Best Buy introduced a $ 199.99 Total Tech Support membership in May to provide online support. in business or by phone, regardless of when and where consumers have purchased a product. In an indicator of potential growth, 80% of the approximately 270 reviews on BestBuy.com rated the service as five stars and 93% recommended it.

Best Buy has also introduced a free in-house consulting service. In August, the company agreed to purchase GreatCall, a provider of mobile products and related services for the elderly, to meet the needs of the growing aging population in the US and expand into the health and wellness category. Joly described the acquisition as "a Best Buy bridgehead in health care," which could provide a gateway to more growth opportunities.

Comparable service sales increased 6.6% in the quarter, up faster than 1.5% in the prior year

Comparable device sales increased 10%, while in the Computers and Mobile Phones category – Best Buy's largest product segment – more than two fifths of total comparable sales rose 4.2%, a slower growth rate from a year earlier. Other major sales drivers included home theaters, games, mobile phones and smart home categories, which compensated for declines in tablets and digital cameras.

Online sales increased 10% after a jump of 31% the year before. Joly tried to ease concerns about the slowdown and noted that Best Buy's online turnover has doubled to about 15% of its total domestic sales over the past five years, a rate higher than other traditional brick-and-mortar retailers , While other retailers, such as Gap's Old Navy, have recently introduced online pick-up orders in the store, Best Buy has been at the forefront of developing its stores, offering this service for more than 10 years, and all its stores were able to process and send online orders since 2014.

The Best Buy result is "another indication of the underlying performance of today's significantly more powerful omnichannel business model," said Oppenheimer analyst Brian Nagel on Tuesday in a report. "We are very impressed and encouraged by Best Buy's improved strategic positioning."

Best Buy seems to have proven to be an Amazon proof.

Relative to Forbes: Housing is hard to come by, and this is good news for Home Depot

Relative to Forbes: Stationary trade may benefit from the co-working space trend


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