Best Buy (NYSE:BBY) to Introduce New Strategies to Keep up the Performance
Best Buy (NYSE:BBY), which is one of the largest electronic retailers in United States showed excellent performance during the third quarter for 2015. The company announced the report on 20th November. Best Buy showed extraordinary performance by making $9.4 billion in revenues with a sequential increase of nearly 5.4%. The main reason behind this success was amazing performance in the gaming console, TV, computing and tablet departments.
In fact, this gave a boost in comparable growth for stores by 2.4%. However, a few factors like the mobile and the services sector were responsible for a partial off set in the quarter. Moreover, the credit also goes to a drop in the NDP which benefited the company, then we have the excellent sales in the tablet as well as the mobile phone devices because of excellent products and reasonable prices.
Despite the foreign pressures to bring about some structural changes in the policy, the company seems to be coping well with the situation. Moreover, the launch of the Renew Blue gave the company (NYSE:BBY) a ground to fight from. This also resulted in a drop in costs by $1 billion as well as operational efficiency. The company also believes that some of the following points will enable a better customer experience and popularity among people.
A) Changes done in the website for a better experience will attract more customers. B) Then the company plans to introduce installments in billing for cell phone user. C) The company is planning to include more varieties of products under the $100 range, this will be the strategy to divert more consumers and investor towards the company. D) The company is also looking forward to upgraded promotional services.
E) They will bring up a more directed and focused approach towards consumers. After that a few new introductions of larger electronic appliances like TVs and similar products is what the company has chalked out for better performance but like always this is just a plan and the success depends on many factors. However Best Buy’s (NYSE:BBY) new installment billing plan is believed to be a hit.
The company had introduced the installment plan with Verizon and Sprint during the 2015 Q1, while the deal with AT&T was done during the third quarter. Following this deal the company has become the first US company to sell services with multiple networks. These installment plans have enabled Best Buy (NYSE:BBY) to witness higher phone prices with increased purchases of add-ons.
The company has plans to divert all of its attention towards digital media rather than print or TV. They believe that the company can achieve high goals through this technique. Another great plan is to complete the Athena project. Through this project the company can have a direct approach to its consumers with a much better communication. So we see the company is making efforts to maintain this pace and perform even better in the coming quarters.