The New York Times: “Best Buy’s rebound has been surprisingly durable. Revenue figures have beaten Wall Street’s expectations in six of the last seven quarters … How do they do it?” Highlights from a conversation with Best Buy CEO Hubert Joly: 1) Price. “Price-matching costs Best Buy real money, but it also gives customers a reason to stay in the store, and avoids handing business to competitors.” 2) Humanity. “The associates in our stores are much more engaged now, much more proficient,” Mr. Joly said.
3) Showcase & Ship. “Mr. Joly realized that with some minor changes, each of Best Buy’s 1,000-plus big-box stores could ship packages to customers, serving as a mini warehouse for its surrounding area … Best Buy also struck deals with large electronics companies like Samsung, Apple and Microsoft to feature their products in branded areas within the store. Now, rather than jamming these companies’ products next to one another on shelves, Best Buy allows them to set up their own dedicated kiosks … Even Amazon has set up kiosks in Best Buy stores to show off its voice-activated Alexa gadgets.”
4) Quiet Cuts. “Under Mr. Joly, Best Buy has used the scalpel as quietly as possible … he has never announced a huge, public round of layoffs, which can crater employee morale and create a sinking-ship vibe.” 5) Luck. “It’s lucky that the products it specializes in selling, like big-screen TVs and high-end audio equipment, are big-ticket items that many customers still feel uncomfortable buying sight unseen from a website. It’s lucky that several large competitors have gone out of business, shrinking its list of rivals. And it’s lucky that the vendors who make the products it sells, like Apple and Samsung, have kept churning out expensive blockbuster gadgets.”