Consumer electronics retailer Best Buy (BBY) has thrived during the Covid-19 pandemic thanks to its hybrid business model that marries online sales with its physical stores, says Chief Executive Corie Barry. Best Buy stock rose on Tuesday.
During a keynote session at CES 2021 on Tuesday, Barry said Best Buy’s hybrid model has allowed it to compete with pure e-commerce companies such as Amazon.com (AMZN). Customers appreciate the fact they can pick up their online orders in Best Buy stores or via curbside, she said. They can also opt for home delivery.
“Even as our online sales ramped — and, as of Q3, they were up 175%-ish — 40% of those sales were still being picked up either in our stores or curbside,” Barry said. “So, there was this real demand to be able to come to the store to get this item when I wanted it, where I wanted it and as fast as I wanted it.”
She added, “The idea of stores as fulfillment epicenters is really important.”
No Going Back To The Way Things Were
On the stock market today, Best Buy stock jumped 3.6% to 114.71.
And now that consumers have gotten comfortable with the flexibility of online sales, in-store pickup and other options, they’re unlikely to change, she said.
‘There isn’t a world where people revert back to their 2019 behaviors,” Barry said.
During the pandemic, Best Buy has seen heightened demand for home office technologies, including PCs, webcams and headsets. The retailer also has seen strong sales of devices for home entertainment and cooking, she said.
The four-day CES 2021 online event runs through Thursday.
Best Buy Stock In Consolidation Period
According to IBD MarketSmith charts, Best Buy stock has been consolidating for the past 10 weeks with a buy point of 124.99. The base began forming after Best Buy stock tumbled following its fiscal third-quarter earnings report.
Best Buy beat Wall Street’s expectations for the quarter ended Oct. 31, but declined to give fiscal fourth-quarter guidance because of uncertainties related to the Covid-19 pandemic.
The earlier start to holiday sales promotions may have pulled some fourth-quarter spending into the third quarter, Best Buy officials said. Also, the retailer faced product shortages in large appliances, video game consoles and other areas.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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