Best Buy Wants To Fight Showrooming With Improved Service
In order to stay ahead in the competitive retail environment, Best Buy (NYSE:BBY) has decided to invest in improving customer service experience for its customers. The retailer has decided to provide better training to about 50,000 employees and, consequently, has increased the allocation of its training budget. [1] Like other retailers including Target (NYSE:TGT), Best Buy’s sales are adversely affected by the rise of ‘showrooming’ where customers go to a brick and mortar store to see a product and eventually buy from online retailers like Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY).
See our full analysis for Best Buy
Competition intensifying
- Retailers are trying to distinguish themselves from each other through better customer service, product assortments and advanced technology. Likewise, Best Buy is presently rebuilding its internal IT team and has plans to hire approximately 200 IT professionals to provide a boost to its e-commerce sales.
- It hired Stephen Gillett, the former Starbucks’ (NASDAQ:SBUX) CIO, who played a key role in revamping Starbucks’ online operations. He is in-charge of Best Buy’s digital business, including its online stores. (See our previous post: Best Buy Hires Starbucks CIO to Boost Online Sales)
- Flat Since The Beginning of 2023, What’s Next For Best Buy’s Stock Post Q4 Results?
- Down 15% This Year, Where Is Best Buy Stock Headed Post Q3?
- What To Expect From Best Buy’s Stock Post Q2?
- What’s Happening With Best Buy’s Stock?
- What’s Next After a 17% Fall in Best Buy’s Stock?
- What to Expect From Best Buy’s Stock Post Q2 Results?
Good customer service – A high priority
- Customers today are more aware about new products, prices and deals. With the increasing penetration of Internet and smart phones, the dynamics of retailing has changed. Customers prefer to compare prices and other associated services online before making a final purchase decision.
- Therefore, it has become essential for present day retailers to look for ways to keep their customers satisfied by way of better servicing, product assortments and other associated services. We think Best Buy’s decision to invest in improving customer experience is a well thought of strategy, as it will help strengthen its relationship with its customer base.
Understand How a Company’s Products Impact its Stock Price at Trefis
Notes: