Best Buy Co Inc (NYSE:BBY) is definitely being hurt with the changing consumer behavior. The impact of changing customer behavior has already had an impact on the second quarter 2014 financial results. The important question is whether Best Buy still serves the purpose of an all-in-one shopper store.
After declaring the second quarter results, Hubert Joly, Chief Executive of Bes Buy Co Inc (NYSE:BBY), said,
“Like other retailers and as reflected in this quarter’s performance, we continued to see a shift in consumer behavior: consumers are increasingly researching and buying online.”
Best Buy Co Inc (NYSE:BBY) reported its second quarter result 2014 with revenue of $8.9 billion and non-GAAP EPS of 44 cents. There was a decrease of 41% in the net income with a fall of 2.7% in the same-store sales.
“Renew Blue” was the silver lining for the company for the second quarter with a focus towards online business growth, better in-store experience for customers, and improve multi-channels capabilities of the stores.
Most of the customers prefer other shopping options including online stores but there are a few reasons that still make Best Buy a viable choice for them. For starters, one can find lucrative prices for LCD or LED TVs as well as laptops. Secondly, the price-match policy from Best Buy Co Inc (NYSE:BBY) makes it possible to avail prices available on major online portals. All that needs to be done is to show the customer service representative a copy of listing and the rest is done.
Further, the price-adjustment policy from Best Buy allows price adjustments in case any item that you purchase from the store is being put on sale within 14 to 15 days of your purchase. With the company focusing towards its customer service and shopping experience, it might again become a feasible option for daily shoppers.
This article has been written by Prakash Pandey and edited by Serkan Unal.