In the course of moving to an omnichannel model, Best Buy will close up to 30 large stores. The re-architecting is being done in order to meet the increasing demand of in-store pickup and ship-from-store.
Innovative strategies like these keep Best Buy in business. The company also is planning to revamp its business in order to stay ahead of Amazon as well as other retailers on the internet.
One of the most renowned retailers across the nation, Best Buy has shuttered at least 30 large stores to implement an strategy of omnichannel to compete against Amazon. The change comes as the company recruited the former Starbucks CIO Stephen Gillett to support its mobile strategy and it is part of a wider attempt to cut down on its bricks-and-mortar footprint, as per the report by Tom Webb at Pioneer Press.
This company is aiming to improve its online capabilities as in addition to enhancing omnichannel customer services, such online and in-store pickup. Additionally, it’s expanded its consulting service to assist customers with individualized technology needs.
Best Buy is a market leading provider of the omnichannel experience which spans its physical, online and in-store stores. This is what has allowed it to distinguish itself from its tech-nonchalant rivals. The chain’s cross-trained staff, skilled Geek Squad and in-home advisors give customers a personalized service that can’t be replicated through Amazon.
Though Best Buy has been able to compete with Amazon when it comes to consumer electronics, its omnichannel services have particular challenges. Problems with supply chain management have affected Christmas sales, and has weakened Buy’s position against Amazon as it attempts to ramp up its brick-and-mortar retail stores.
Despite the detrimental impact of supply-related issues on the sales of Best Buy’s website however, the retailer has created an effective strategy for omnichannel that leverages the stores’ 983 locations. They serve as service centers of Geek Squad, fulfillment centers for online orders and pick-up/return stores to customers.
Best Buy swiftly switched to curbside pickup of online purchases during the COVID-19 pandemic. This was in response to consumer demand, and it has resulted in an increase in eCommerce sales. But it’s too late to assess the severity of the effect. Additionally, the company has recently introduced Totaltech membershipsthat could aid in reducing post-pandemic electronics demand. Non-members pay less for their services and are able to interact more frequently with the business as compared to customers who are members. Membership fees also aid in building a more solid relation with customers. This could lead to more revenue over the long run.
Pick it up in the store
The retail giant plans to close the doors of up to 30 locations as it shifts its focus towards smaller, more intimate shops. It will also spend $200 million on resetting and sustaining its existing sites. It’s all about creating a positive customer experience. However, it’s expensive. The most challenging challenge is finding a solution that maximizes each store’s space and increase revenues by 10% or more. Best Buy has decided to be modest and to open small shops, and also reuse existing stores to meet different needs. It’s an unglamorous but effective method that allows it to be more competitive with Amazon and other internet giants.
Best Buy is shuttering up thirty larger stores, as it shifts omnichannel. Corie Barry, the chief director of Best Buy, has said that the retailer is changing its physical footprint.
The chain relies in large part on sales at stores to fund its online activities it is also cutting back its staff. The company recently cut the full-time equivalent of 5,000 workers, and is changing more of them to part-time.
The retailer must make the change to keep pace with the demands of consumers. The company launched in 2021 an experiment of digital-first, small-format locations that are 15 percent smaller than traditional 35- to 40,000-square-foot Best Buy places and adopt an entirely different way of doing things.
It’s best when your inventory is integrated across all channels, so you are able to assign orders and merchandise to the storefront closest to you. Also, it allows Warehouse staff to understand where stock is located in real-time this translates into more efficient scheduling and distribution.