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Headquarters
7601 Penn Ave. South, Richfield, 55423, Minnesota, United States -
Annual Global Sales
$46,298,000,000
Total U.S. Sales
$40.1 billion in U.S. sales in fiscal 2024 (ended Feb. 3, 2024)
Total U.S. Stores
965 U.S. stores including 20 Pacific Sales stores, 22 Best Buy Outlet Centers and 22 Yardbird stand-alone stores; and 160 Canadian stores including 32 Best Buy Mobile stores (as of the end of fiscal 2024)
Shopper Count
600 million shoppers annually
Key Facts
- The world’s largest multi-channel consumer electronics retailer with stores in the U.S. and Canada
- 1.5 billion visitors to websites and store each year
- The retailer was the poster child for “showrooming” before turning that to its advantage
- More than 70% of Americans are within 15 minutes of a Best Buy store
- Closed all 257 standalone Best Buy Mobile stores in the U.S. in May 2018
Key Executives
- Chief Executive Officer: Corie Barry
- Chief Financial Officer: Matt Bilunas
- Chief Merchandising Officer: Jason Bonfig
- Chief Marketing Officer: Jennie Weber
- President, Best Buy Health: Deborah DiSanzo
- Chief Communications and Public Affairs Officer: Matt Furman
- Executive Vice President, Omnichannel: Damien Harmon
Financial Information
- Fiscal 2024 Best Buy Annual Report
- Fiscal 2023 Best Buy Annual Report
- Fiscal 2022 Best Buy Annual Report
- Fiscal 2021 Best Buy Annual Report
- Fiscal 2020 Best Buy Annual Report
- Fiscal 2019 Best Buy Annual Report
- Fiscal 2018 Best Buy Annual Report
- Fiscal 2017 Best Buy Annual Report
Resources
- Market Position and Strategy Overview
- Must-Know Terms
- Promotional Strategy
- Merchandising
- Collaborative Alliances
- Displays & Signage
- In-Store Media
- Store Formats/Growth
- Special Departments/Services
- Customer Segments
- Internet Marketing
- Retail Media
- Mobile Marketing
- Social Media
- E-Commerce
- Circulars
- Loyalty Programs
- Private Label
- Cause/Community Programs
- Advertising Strategy
- Solution Providers
- Marketing Expenditures
Market Position and Strategy Overview
Market Position and Strategy Overview
Best Buy got itself out of quite a pickle when it moved from its "Renew Blue" turnaround efforts into a "Best Buy 2020" growth phase based on three pillars: maximizing the multi-channel retail business, provide services and solutions that solve real customer needs, and accelerate growth in Canada and Mexico.
The company has shown itself to be one of the retailer industry's most resilient operators as it fought consumer perception that it didn't have comparable prices to Internet giant Amazon and that its employees lacked technical expertise. Then-Chief Executive Officer Hubert Joly cut costs (by closing stores, laying off employees and trimming marketing spend) and dedicated more store space to brands while instituting a price match policy and touting the expertise of Best Buy’s staff.
The four-year "Renew Blue” transformation reclaimed leadership for Best Buy as the destination for technology products and services by addressing three business imperatives: operational performance, foundational capabilities and unique assets to create a differentiated value proposition. It was built around the following areas:
- Merchandising – create compelling and differentiated strategies for key categories, strengthen vendor partnerships, optimize in-store space, improve visual merchandising, expand private-label and exclusive assortment, and optimize handling of returns, replacements and damaged product.
- Marketing – develop more targeted, personalized digital communications, implement programs for key buying occasions like gifting and movers, and create greater engagement via the loyalty program and credit card offerings.
- Online – enhance search, tools, recommendations, and product and price information; improve the presentation and messaging of accessories and services that enable consumers to build their own bundle; and leverage expanded supply chain capabilities to provide superior fulfillment solutions.
- Retail stores – organizing retail around the stores and making general managers fully accountable for their performance, while organizing around key markets and providing better tools for employees.
- Supply chain – leverage the network of distribution centers and stores to provide increased inventory availability, and improve delivery speed and installation capabilities.
- Geek Squad – reduce legacy cost structure to help fund price competitiveness, improve service delivery and experience, refine existing service offerings such as extended warranty services, and improve the merchandising of services while building new offerings.
- Cost structure – more quickly and deeply reduce costs, including the nearly 10% of revenue lost due to returns, replacements and damages.
- Employee engagement – a new field and store operating model focused on strengthening e-commerce and personalized marketing talent, enhancing performance management and redefining key business processes to better support a multichannel customer focused strategy.
The transformation also included a Renew Blue “Ignite the Possible” element that was all about the retailer’s value proposition: becoming customers’ trusted partner for technology by going beyond simply selling products to enriching and empowering lives through technology by offering advice, service and convenience.
In addition, in 2020, Best Buy entered into a five-year partnership with Accenture to advance its technology strategy, delivery and operations (specifically, the retailer’s work in data science, information security, product development, technology risk management and user experience design). The partnership is also aimed at bolstering Best Buy’s commitment to a diverse, well-trained workforce.
Must-Know Terms
Must-Know Terms
- Best Buy 2020: The retailer's new growth plan is based on three pillars: maximizing the multi-channel retail business, providing services and solutions that solve real customer needs, and accelerating growth in Canada and Mexico.
- Renew Blue: The strategy the retailer followed until recently to complete its turnaround.
- My Best Buy: The retailer’s loyalty program. In 2023, Best Buy retooled it, making it tiered. (See Loyalty Programs.)
Thought Starters
- Provide an exclusive product, as Best Buy is working to differentiate itself from competition.
- The retailer is also working to leverage its physical locations as an advantage against online competitors, so supply customized demonstration displays that let shoppers try out a product in the store.
- Provide educational and entertaining content that helps Best Buy position itself as a channel expert.
Promotional Strategy
Promotional Strategy
Best Buy utilizes an array of promotional tactics to drive traffic and sales from a large swath of consumers. Price does factor in to the equation: free-interest windows on big-ticket purchases are common, as are free accessories and, increasingly, free or discounted services from the Geek Squad.
In-store and online events in partnership with vendors are common for major product launches.
Programs for key buying occasions such as gifting, life events and new movers also are a focus.
Best Buy in 2023 started its Black Friday push early, giving loyalty program members a head start on special deals and/or deeper discounts on laptops, wearable technology, toys and more. For the holidays, it's holding several shopping events and offering gift inspiration, including its:
- Apple Sales Event, with deals on iPhones, MacBooks and iPads;
- Last-Minute Sales Event, with deals on small appliances, headphones, virtual reality headsets, mobile devices, toys, accessories and more, frequently with deeper discounts for loyalty program members;
- Free day-of delivery on Dec. 24 (when order is placed by noon) or pickup and curbside orders can be made by 5 p.m. to be available before stores close at 7 p.m. that evening;
- Gifting inspiration via its BestBuy.com/Gifting and Yes, Best Buy Sells That pages as well as savings through its Outlet stores;
- Best Buy Drops, limited time exlusives available on the app (see Loyalty Marketing); and
- New for 2023, videos on YouTube with experts giving advice on tech gifts, toys, outdoor living and more.
Ongoing/Periodic Programs
- Black Friday in July: Annual savings event that runs around the same time as Amazon Prime Day. Anyone can shop deals, but My Best Buy Plus and My Best Buy Total members (see Loyalty Programs) can access exclusive offers and additional discounts on laptops, smart TVs, appliances and more.
- Member Exclusive Month: October is Member Exclusive Month. For 2023, Plus and Total members (see Loyalty Programs) can access
- exclusive deals and discounts on technology;
- a 48-hour flash sale (Oct. 10-11) with deals on TVs, laptops, electric transportation, headphones and smartwatches;
- exclusive sales on Samsung (Oct. 6-8) and Microsoft (Oct. 13-15), with discounts and rewards; and a
- weekend gaming event, with three days of savings and several video game launches.
Merchandising
Merchandising Strategy
Merchandise at Best Buy is divided into six revenue categories:
- Consumer Electronics: Digital imaging, health and fitness products, home theater, portable audio (including headphones and portable speakers) and smart home.
- Computing and Mobile Phones: Computing (including desktops, notebooks and peripherals), mobile phones (including related mobile network carrier commissions), networking, tablets (including e-readers) and wearables (including smartwatches).
- Entertainment: Drones, gaming (including hardware, software and peripherals), toys, movies, virtual reality and other software.
- Appliances: Large and small appliances.
- Services: Delivery, health-related services, installation, memberships, repair, set-up, technical support and warranty-related services.
- Other: Non-core offerings such as baby, food and beverage, and outdoor living.
While individual store layouts and product selection are tailored to specific demographics, all locations have departments for cellular phones, TVs, home audio equipment, computer, mobile entertainment, music, home video, video games, satellite systems and appliances.
The retailer has also reorganized its field structure around key markets with the goal of having a local strategy for each of those markets. Under the new field and store operating model, stores are fully accountable for their performance under the leadership of the store general managers.
In recent years, redesigned layouts allot more space to higher growth categories, emphasize exclusive brands, and focus on selling the entire product ecosystem rather than just one item. For fiscal 2025, CEO Corie Barry said Best Buy plans to refresh and improve stores' merchandising presentation, helped in part by the rise in digital shopping and a reduced need to stock as much inventory as possible on the sales floors. A number of categories are being rightsized, too, to better leverage the center store space to keep things relevant and efficient.
Best Buy stopped selling DVD and Blu-rays discs both online and in stores at the end of the 2023 holiday season. With streaming rendering DVDs virtually obsolete, the retailer says it will use the store and warehouse space for tech products that are in greater demand.
Stores have also added branded shops from leading vendors. (See “Special Departments/Services.”)
In the vendor shops, and as often as possible elsewhere in stores, technology products are displayed out of the box so that shoppers can “experience” their design and capabilities. Each major video game console, for instance, has its own demonstration station, and these are regularly used to demo new software releases. The company’s efforts to portray itself as the channel expert mean that most product is presented on permanent displays in the distinct departments, accompanied by information signage and related accessories.
The retailer has invested in designer collaborations for exclusive electronics accessories in an effort to appeal to more female consumers and significantly expanded its assortment of giftables priced under $100. On the other end of the price spectrum, the retailer also continues to expand its 4K TV assortment.
In 2021, Best Buy continued its expansion into home categories beyond electronics with the acquisition of St. Louis Park-based Yardbird, a direct-to-consumer outdoor furniture brand. The retailer sells Yardbird’s products, such as patio furniture, grills, fire pits and electronic mowers, that are made of sustainable materials, including recycled plastics, both online and nationwide in physical locations, including at more than 50 Best Buy stores and 14 standalone Yardbird showrooms. In 2023, Best Buy announced plans to open more Yardbird showrooms.
Collaborative Alliances
Collaborative Alliances
Best Buy works closely with its product vendors for advertising, promotions and events. The retailer seeks partnerships that are relevant to specific customer segments, but also is willing to participate in general traffic-driving events. In-store events supporting major product launches are common, for example.
Best Buy also hosts stores-within-a-store for leading suppliers, setting a brand’s products apart from other vendors in distinct environments. This effort has gained momentum in recent years as it is a way for the retailer to subsidize its sales floor. Manufacturers typically invest a high amount in these shops and provide the labor as well. However, Best Buy has been careful in choosing which suppliers to extend the offer to, to avoid overwhelming the store.
Whereas most retailers fund their own price promotions, recently more of Best Buy's suppliers have been financing product price discounts across all categories, improving Best Buy's product margin rates.
Apple Shop
Best Buy began installing Apple stores-within-a-store, complete with dedicated “geniuses” trained by the vendor, in 2007, earning recognition as one of the few retailers triumphant at selling Apple computers. Both Apple and Best Buy benefitted from increased store traffic, a boost in sales, gains in market share, improved customer loyalty, and a rise in customer satisfaction scores, according to the retailer. The shops are in place across roughly 800 locations.
Roku
In 2023, Best Buy became the exclusive retailer for Roku-branded TVs.
Windows Store
The retailer has deployed some 1,600 Windows stores-within-a-store. A makeover to store computer departments, the areas continue to merchandise products from a variety of brands that employ the Windows operating system while also covering Windows-based phones, tablets and Microsoft Xbox game systems (SKUs that remain stocked in their respective departments as well). The shops average 1,500 to 2,200 square feet and command a striking visual presence through the use of prominent brand signage and colors, as well as wood flooring.
Copilot+ PCs
Best Buy is selling Microsoft's Copilot+ PCs, boasting it has the largest assortment of the technology. It also is the exclusive retailer of several models, including devices from Microsoft, Dell, HP, Lenovo and Samsung. Product demos are being held in store, and trained professionals are on hand to answer questions.
Samsung Experience Shop
The retailer hosts some 1,400 Samsung stores-within-a-store. The dedicated shops give the brand added visibility while augmenting the in-store shopping experience with customized demonstration stations. They stock a wide range of Samsung products including smartphones, tablets, laptops, connected cameras and accessories. Many of the items are showcased on tables for shoppers to test. Outfitted with large brand signage, the shops are otherwise minimalist and open in their design. While the size varies by store, the largest covers roughly 460 square feet.
Intel Technology Experience
Averaging 240 square feet and in place in 50 stores, the shops let shoppers play with and explore new technology via activities such as building and printing their own 3D robot, augmented reality racing on Mars, remixing songs as a digital DJ and, of course, checking out the latest PC and tablet devices powered by Intel processors. Intel refreshes the shops each season.
Camera Experience Shop
Co-branded with Canon, Nikon and Sony, the shops are manned by employees trained to give photography advice and help shoppers select the right product. They boast an expanded selection of cameras, lenses and accessories from the flagship brands as well as Olympus, Fujifilm, Panasonic, private label Insignia, GoPro, SanDisk and a dozen others.
Oura
The retailer is partnering with wearable health technology company Oura to bring its products to 850 Best Buy stores and BestBuy.com. Oura's smart rings provide user data on sleep and activity levels. More than 250 Best Buy stores will have Oura inventory in stock, while the remaining will offer quick shipping or in-store pickup. Fifty locations will have a dedicated in-store experience.
Amazon Alexa and Google Home Experiences
The retailer rolled out experience shops for both the Amazon Alexa and Google Home voice assistants. The shops feature the tech company's full array of voice-enabled devices.
Smart Home Powered by Vivint
The display is an joint initiative between the retailer and smart home security provider Vivint. Staffed by experts from both entities, an informative standee is positioned alongside a bright blue, interactive door that lets shoppers demo smart locks, light switches, cameras and thermostats from Vivint. Shoppers can purchase installation plans and security monitoring directly from Vivint.
Withings
Best Buy carries Withings products, including its Body Smart scales, but in 2023, the retailer partnered with the French consumer electronics company to be the exclusive brick-and-mortar store for Withings’ latest devices, including scales and smartwatches, further building on its commitment to offer more wearable health tech. In 2024, Withings’ newest offerings are being promoted online and being moved to displays.
Tonal
Smart home gym manufacturer Tonal is available at BestBuy.com. Customers can buy the systems and accessories online and have Geek Squad agents handle delivery and installation.
Best Buy maintains a help center for suppliers on partners.bestbuy.com where it offers a one-stop shop for all supplier policies and guidelines plus other information.
Displays & Signage
Displays and Signage
Throughout the store, shoppers are encouraged to experience products and services, whether via computers that let them sample and gather information or through TVs showcasing the latest films on home video (flanked by promotional signage). Video game consoles have their own demo stations that are often used to showcase new software releases.
Thus, the retailer is more interested in sophisticated endcaps and in-line systems than in temporary displays. The latter are accepted, however, most often in the case of a new DVD, videogame and computer software releases (though Best Buy will stop selling DVDs and Blu-ray discs both online and in-store after the 2023 holiday season) and often with an exclusive promotional hook. Temporary displays are almost always placed around the main racetrack aisle, leaving departments easier to navigate. Both full pallet displays and smaller floorstands are common. Power wings and sidekicks are not used.
Products are displayed on shelves and on endcaps, so freestanding displays within departments are kept to a minimum. Displays are designed to engage shoppers, and Best Buy increasingly is adding demo capabilities — such as customized demonstration endcaps for Turtle Beach headsets in some 770 stores — to as many displays as possible so that shoppers can test-drive items.
In recent years, the retailer has installed a wave of branded vendor shops in stores as a way of subsidizing its sales floor. See "Collaborative Alliances" for more.
Among additional special merchandising initiatives:
- Samsung Entertainment Experience: Available in some 500 stores, the dedicated areas highlight the picture quality of Samsung’s latest line of TVs and show off a selection of curved UHD TVs; they are staffed by Samsung-trained Best Buy employees. The TVs are showcased alongside the company’s’ home audio products. The shop includes two tablets to test connecting content to the TVs.
- Sony Experience: Available in some 350 stores-within-a-store, demonstration displays that let shoppers test and try Tvs, sound bars and gaming solutions. Shoppers interact with a touchscreen that shows different options for sharing content with the TVs.
- GoPro: 500 stores host a permanent, custom, 12-foot endcap/in-line display that showcases the newest GoPro products and triples the brand’s previous at-shelf presence.
- LG Experience Wall
- Sony Music Kiosks: High-res listening stations available in some 330 stores
Related products are often showcased together (especially in the home theater department) so that shoppers can fully experience different combinations and options.
Freestanding temporary displays are also used for impulse buys near checkout, where the chain stocks candy, snacks and beverages along with more standard fare like batteries. (Coca-Cola Co. is a regular promotional partner.)
Most temporary displays and signs incorporate the Best Buy logo and blue-and-yellow color scheme in some way.
Other than those found on displays and the in-store vendor shops, branded signage is rare. Ceiling banners, window clings and shelf signs typically are used for the chain’s own seasonal campaigns or to provide information relevant to purchase decisions.
In-Store Media
In-Store Media
Best Buy recently has been more active in pitching its media network offering, touting its first-party data and high-net-worth customers. In addition to in-store media leveraging TV and computer screens, the retailer's in-house team offers ad units including native app ads, targeted banner ads, email blasts and website takeovers. Search is also available through Criteo.
The retailer boasts:
- 1.5 billion customer interactions annually
- 2 million daily web visitors (20 million daily during the holidays)
- a store within 15 minutes of 70% of the U.S. population
The retailer’s in-store digital media network accepts brand-supplied HD content to run on floor-model screens. The network also streams exclusive editorial content on technology and entertainment — including product tutorials and interviews with musicians — produced by the retailer’s in-house Yellow Tag Productions unit.
It has run advertising from obvious brands such as Panasonic, LG and Bose, as well as from less likely sources such as Procter & Gamble’s Swiffer and Tide. The latter ads are for “contextual” SKUs such as an LCD screen cleaner.
Advertisers can run ads throughout the entire store, or in a specific department, such as the back of store “HDTV Wall.”
The main goal of the network, however, is not to generate sales lifts, but to create engagement with a product category or provide shopper entertainment.
Best Buy boasts 140,000 screens across its U.S. store base, and 95% of shoppers visit at least one department with a media channel. The retailer claims a 29.5 minute average shopper dwell time per store visit, with ad recall and retention rates averaging 35% and as high as 52%. According to Best Buy estimates based on Arbitron and Nielsen 2013 audience studies, of shoppers viewing an ad:
- 29% purchased the product or brand.
- 19% asked employees about the product or brand.
- 20% looked online for more information about the product or brand.
- 21% discussed the product or brand with family and friends.
Store Formats/Growth
Store Formats/Growth
Globally, Best Buy operates just over 1,100 large format stores. Flagship big-box stores average between 30,000 and 45,000 square feet in size.
As part of its Best Buy 2020 plan (See "Must-Know Terms"), the retailer remodeled and opened a handful of new big-box stores in Canada and Mexico throughout the past few years in efforts to leverage its multichannel and service offerings. (In early fiscal 2022, all Mexico locations were closed.) In the U.S., Best Buy shrank its physical footprint as it emerged from its turnaround efforts, and turned some of its stores into ship-from-store hubs to handle an increased number of online orders during the COVID-19 pandemic.
For fiscal 2024, the retailer shuttered 27 stores domestically, including 24 large-format stores, two outlet centers, and one Yardbird location. That year it also opened five outlet centers and nine Yardbird stores. For fiscal 2025, Best Buy plans to close 10 to 15 locations. The retailer also will keep investing in stores, not so much through major remodels but concentrating more on updates and refreshes.
Currently, Best Buy is testing a number of store prototypes, particularly in the Charlotte, North Carolina, area, to stay ahead of consumer trends.
Experiential format stores offer immersive opportunities for shoppers to interact with technology and products, including gaming, fitness, computing, wearables, smart appliances and more. They also boast a bigger Geek Squad presence and more fulfillment options.
Some North Carolina stores have smaller footprints and handle fulfillment differently. Other options include scan to buy, mobile self-checkout, curated products and categories, and access to a virtual expert – most evident in its pilot “digital first” store in Monroe, North Carolina.
Best Buy is also creating a new outlet concept that would have more types of discount merchandise and serve as a hub for auto technology installations. At one distribution center, Best Buy plans a "virtual store" where employees can conduct product demonstrations through video and live chats.
Due to the success with the pilot locations, Best Buy plans to grow the number of experiential stores, including remodeling 40 U.S. stores (with a goal to remodel 50 got 2024). It also intends to increase the number of outlet centers throughout 2024 and expand offerings to include computers, gaming consoles and mobile phones.
Alternative store formats and banners include:
Best Buy Mobile
All standalone Best Buy Mobile locations were closed in May 2018, but a handful remain open in Canada. The format was launched through a joint venture with U.K.-based Carphone Warehouse in 2006, including both stand-alone and store-within-a-store locations. Stand-alone stores average 1,500 square feet. The store-within-a-store formats provide approximately 800 square-feet of display space and are often located near store entrances.
Magnolia Audio Video
The small chain of high-end audio and video consumer electronics stores based in Seattle was purchased by Best Buy for $87 million as a wholly owned subsidiary in 2000. The retailer has closed all its standalone locations, but continues to leverage the chain's brand equity and high-end focus to offer premium products and services, home installation and mobile installation by expanding the concept through Magnolia Design Center store-within-a-store locations inside Best Buy stores.
Pacific Sales Kitchen & Bath
Best Buy acquired the high-end home improvement products retailer in 2006 for $410 million. The deal lets Best Buy reach an affluent customer base seeking premium brands for home remodeling, kitchen appliances, plumbing fixtures, home entertainment and other furnishings. The showrooms average 30,300 square feet.
Best Buy Express
In 2024, Best Buy Canada and Canadian telecommunications company Bell entered into a partnership where some locations of Canadian tech retailer and Bell subsidiary The Source will be shuttered, and 165 stores will be rebranded as Best Buy Express. The Best Buy Express locations are slated to open primarily in malls and smaller and mid-sized communities throughout Canada. The stores will sell consumer electronics from Best Buy as well as offer telecommunication services from Bell.
Special Departments/Services
Special Departments/Services
Best Buy is making a greater push on the services side, including an improved delivery and installation experience, and increased marketing support and greater Geek Squad integration.
Geek Squad
The Geek Squad was a Minneapolis-based start-up specializing in repairing and installing PCs when Best Buy acquired it in 2002. At the time, the acquisition was considered a gamble. However, the company proved prescient in its forecast of the need for technical support for home entertainment networks.
Today, the Geek Squad business is an integral part of Best Buy's strategy as a 24-hour task force dedicated to solving technology challenges. More than 20,000 active technicians help in-stores, online, by phone, in-home and at service centers in every store. The stations are usually upfront, identified by their orange-and-black signage, which stands out from Best Buy’s regular yellow-and-blue color scheme. No stand-alone locations remain in the U.S., though the retailer did open a pop-up Geek Squad shop in Chicago's O-Hare airport during holiday 2014.
Connected Home
In 2014, the retailer rolled out home-automation departments to more than 400 stores. The “Connected Home” sections stock more than 100 smart-home products from both established brands and startups. Most are located near the center of the stores, adjacent to the mobile departments. More than half of the locations are staffed by specialists who receive additional training on the devices.
Mobile
In 2016, the retailer began rolling out updates to its mobile department. The program is known as Mobile 2020 and includes updated vendor/carrier displays, menu boards, plus dedicated sections for prepaid and unlocked phones.
In-Home Advisor Program
Piloted in 2016 and expanded nationally in 2017, the program brings Best Buy salespeople into the home to gain greater information about their purchase needs and expectations and potential grow the final ticket with add-on purchases, which would never have been possible in the store environment. Best Buy plans added advisors and improved their tools and systems in 2018.
Totaltech Support
Membership provides anytime Geek Squad support for all of a customer's technology, regardless of where it was purchased, for $199.99 a year. Membership also includes extended product protection (with active membership), free shipping and installation, exclusive pricing, extended return windows, and discounted repairs and services.
Best Buy Health
The retailer has spent more than $900 million on healthcare acquisitions, including the 2018 purchase of GreatCall Inc., which links mobile devices with healthcare services for seniors, and the 2019 purchases of Critical Signal Technologies and BioSensics, which are also both technologies for seniors. In 2021, Best Buy acquired U.K.-based Current Health Ltd., a care-at-home technology platform that offers remote patient monitoring, telehealth and patient engagement, to combine with its existing health products and services.
In 2023, Best Buy entered into a three-year partnership with Atrium Health, to set up virtual care systems for 10 hospitals in the Charlotte, North Carolina area. Best Buy's Geek Squad go to patients' homes to set up technology that monitors patient vitals, and trains the patient and/or caregivers in using the devices. Data is shared with medical staff through Current Health's telemedicine hub.
Customer Segments
Customer Segments
Best Buy’s core audience is between the ages of 25 and 54, with kids and a household income of more than $75,000. The average customer is 30, and 58% of them are male. 24% of Best Buy shoppers are Amazon Prime members.
Best Buy has been working to better target female shoppers by increasing the number of female employees and training all employees to speak in less “technical” terms. The company is also experimenting with female-focused merchandising, such as exclusive designer accessory lines
Best Buy has also placed a considerable focus on the small business consumer, having determined that 10% of store traffic can be classified as such.
Athena: The chain has one of the biggest house files of any retailer and has been working on a data project — dubbed Athena — to enable a more targeted approach to customer marketing based on past purchases, browsing history, location and demographics. The effort is still in the early stages.
Internet Marketing
Internet Marketing Strategy
Bestbuy.com is among the top 10 retail websites in the U.S.
The website’s home page presents boxy, asymmetrical design, focusing on seasonal sales and major product launches, as well as a banner ad that is usually claimed by a national brand. The website also spotlights a “Deal of the Day” sale item as well as suggested and outlet deals, the loyalty program, new products and featured offers.
The website offers a robust and streamlined wish list, visual and editorial content, enhanced search and navigation capabilities, and the ability to see shoppers' historical Geek Squad service plan purchases when they log in to My Best Buy.
Other features include gift ideas, business services, health and wellness equipment and tools, shop-by-department options, and live chat with their experts.
Best Buy’s digital circular is an enhanced, interactive version of the print copy bolstered with product reviews, e-commerce links and videos delivering relevant content.
The company is developing more targeted and personalized digital marketing — beginning with emails and expanding to relevant landing pages — as it begins to mine its customer information. (See Customer Segments.)
Best Buy continues to optimize its web page in 2023. Most recently it added website functionality that allows people with disabilities to shop for assistive technology products. The landing page came about via an Innovation Week pitch.
Outside of its webpage, the retailer often runs its own display ads and co-op ads on third party websites, in some instances instituting homepage takeovers. It also uses paid search.
Retail Media
Retail Media
In 2021, Best Buy began enabling advertisers to use Criteo’s cross-retailer, self-service platform to reach BestBuy.com and BestBuy.ca shoppers through sponsored products. In 2022, the retailer launched its own in-house media company dubbed Best Buy Ads, which first was available in the U.S., and then launched in Canada in 2023. Best Buy Ads offers:
- Paid search and sponsored product ads,
- Onsite and offsite display ads,
- Onsite and offsite video ads,
- Social ads on Facebook and Instagram,
- In-store video ads, and
- Proximity messaging to Best Buy app users.
In 2023, Best Buy piloted My Ads, a self-service campaign management platform offered through Best Buy Ads.
The retailer also has partnered with streaming platform Roku, a move which will enable brands to utilize first-party data for targeting and closed-loop measurement.
CNET Partnership
Best Buy and consumer technology website CNET have teamed to help brands reach larger audiences of high-intent shoppers through curated content and "unbiased editorial advice" from CNET's experts. Product reviews and CNET-approved product picks will appear on several Best Buy channels, including the retailer's website, mobile app and stores. Advertisers can share ad spaces across Best Buy's and CNET's assets and view the impact of their advertising and audience insights through a full-funnel, closed-loop media solution.
TalkShopLive
For the 2023 holiday season, Best Buy is holding several live online shopping events. Best Buy's Virtual Sales Experts will be on hand to answer questions and demonstrate tech from several of the retailer's newest categories, including beauty and wellness, e-transportation, outdoor living and pet tech. Each show features limited-time deals and giveaways.
Trends Report
For the past four years, brand marketers asked to rate various retail media platforms for Path to Purchase Institute’s annual Trends Report have generally given the platforms good scores. In the magazine's 2023 Trends Report, Best Buy Ads generally earned an "excellent/very good" score for traffic-driving capabilities, but more than half of the small pool of respondents gave a "fair/poor" grade for creative freedom metrics. (See chart below.)
Key Facts
The chart below has information compiled by The Mars Agency. It is published as part of THE AGENCY'S quarterly Retail Media Report Card, with input provided by the retail media networks
Mobile Marketing
Mobile Marketing Strategy
As one of the few remaining brick-and-mortar businesses in the consumer electronics space, Best Buy heavily relies on mobile to drive both online and in-store sales. Similar to general industry trends, the retailer's traffic for mobile phones is growing much faster than traditional desktop traffic, and it is increasing its mobile investments accordingly.
The retailer's mobile application lets users:
- browse products
- view deals
- locate a store
- scan bar codes and QR codes
- check gift card balances
- check phone upgrade eligibility
- find a game’s trade-in value
- manage a credit card
- view recently recalled products
In 2024, the retailer unveiled several new features designed to offer customers a more personalized shopping experience. Powered by AI, every customer's app home screen will look different, customized with products, categories and services they want. A "Yes, Best Buy Sells That" tab helps shoppers explore and discover tech products as well as seasonal and holiday assortments. The new tab also highlights features such as Best Buy Drops (see below), and a Shop with Videos feature delivers personalized content designed to foster engagement. App users can check order status with live tracking, access their digital wallet, and get personalized push notifications on rewards or when new products launch or go on sale.
The revamped app also offers My Best Buy Plus and My Best Buy Total members exclusive member deals and personalized offers.
Best Buy unveiled a new feature, Best Buy Drops, that features special products and deals from several categories, with new promotions and details on product releases released regularly. My Best Buy Plus and My Best Buy Total loyalty members receive access to "deeper discounts" on some offers.
In March 2024, Best Buy partnered with Xbox and Paramount to release a special-edition "SpongeBob SquarePants"-inspired console to celebrate the Nickelodeon All-Star Brawl 2 game. The game bundle is available on the Best Buy app on a first-come, first-serve bass.
The retailer's loyalty program is integrated with mobile. Members receive special promotions exclusively through the app, and can view their points and past purchases. The app’s in-store mode also lets members earn bonus points for checking in at stores.
Compared to its app, Best Buy’s mobile site is much simpler. Instead of driving loyalty, the site is aimed at driving online sales and foot traffic. It spotlights various deals, offers a store locator and lets visitors view clearance and open-box items by store as well as check the status of their order.
The retailer also has a Best Buy Gaming app that lets users shop video game deals, check trade-in values and build their game library. A new Geek Squad app added in 2016 as part of the retailer's strategy to focus on services provides support and appointment booking.
The retailer offers various SMS programs for text alerts. The retailer also periodically offers mobile games to engage members. Brands such as Walt Disney Co.’s Disney have participated.
Best Buy often runs ads on third-party mobile sites (such as Pandora): some are intended to drive online traffic and sales, others use location to let consumers know how close they are to a store.
Best Buy was the first retailer to partner with eBay’s RedLaser to geofence its locations, letting shoppers see special offers and view items relevant to them as they step into a store. The consumer electronics retailer also participates in third-party apps such as ShopKick and Ibotta.
Best Buy Envision
In 2024, Best Buy launched Best Buy Envision, an app available exclusively on the Apple Vision Pro. The app uses augmented reality to help users view 3D models of several Best Buy products — including TVs, appliances, fitness equipment and furniture — in their own homes. Users can also access product ratings and pricing, share the product with a friend via text or email, or they can open the product page in the Vision Pro Safari app to make a purchase.
Social Media
E-Commerce
E-Commerce Strategy
Bestbuy.com boasts about one billion visitors shopping online annually. The retailer has worked diligently to turn around what was one of the worst online conversion rates among major retailers, generating its highest-ever domestic online revenue of $6.0 billion in fiscal 2018 (ended Feb. 3, 2018), up from $4.8 billion in fiscal 2017 (ended Jan. 28, 2017).
Best Buy boosted its online inventory by about one-third in 2011 when it began offering products from third-party sellers (such as Buy.com, Mambate, SF Planet, ANT Online, BeachAudio.com and Wayfair) to better compete with Internet rivals — but reversed course on that strategy in 2016, when it booted third-party sellers from its online marketplace. The retailer had also significantly boosted online inventory in 2014 by adding a "Best Buy Outlet" section of open-box inventory that can be purchased online for delivery and picked up in-store. The retailer also enhanced the online scheduling of home delivery and installation.
The company continues to improve its online shopping experience, by streamlining the process, enabling faster and more efficient delivery and further enhancing the in-store pickup experience for its customers. It sees the investment as fundamental both to its online business and store business. Throughout the company, merchants today are thinking mobile first – whether or not a transaction gets completed on the site or mobile application is irrelevant.
The retailer also has embraced the concept of showrooming to highlight its own multichannel capabilities. Many product price labels have QR codes shoppers can scan to view more information. The retailer offers in-store e-commerce kiosks, some of which are specific to video game pre-orders. It frequently deploys in-store signs directing shoppers online to find more products. Best Buy also has been building vendor shops and its own branded areas within stores to provide demonstrations of products and other experiences not available via the Internet. (See “Store Formats/Growth.”)
As of late, Best Buy has put its weight behind support offerings such as the In-Home Advisor program and Total Tech Support, which sends experts to customers’ homes for tech guidance and solutions. Total Tech Support offers 24/7 online access to agents via bestbuy.com as well as a mobile app with access to Best Buy Drops (with information on limited releases and savings), personalized recommendations, AR to view how an item will appear in a customer's space, order tracking and more.
"Timed Replenish" offers My Best Buy members recurring shipments of qualifying products such as electric toothbrush heads, K-cups and water filters based on frequency. A second "Smart Replenish" works with qualifying printers that monitor ink levels and automatically orders more when low.
In 2023, DoorDash partnered with Best Buy to offer on-demand delivery; customers can now shop Best Buy products on the DoorDash app.
Best Buy offers curbside pickup from all its retail locations. In 2023, the retailer said it would be clear parts of its sales floors at some locations to help with online order fulfillment.
Best Buy offers ship-from-store capability in all stores (as of the first quarter of fiscal 2015). Most online orders of at least $35 receive free shipping. However, roughly half of online purchases are actually picked up in stores. Of that, more than half of customers opt for same-day pick-up, and a substantial portion make an additional purchase in-store.
Circulars
Circulars and Publications
In September 2019, Best Buy got rid of its digital circular, which was powered by Flipp, Toronto. Now, the retailer uses a “Top Deals” web page within bestbuy.com to corral each week’s biggest deals and products. The old circular would typically span more than 45 pages, so its new strategy is much easier to digest.
Best Buy also used to distribute a weekly circular via Sunday newspapers on large sheets. The tab averaged some 15 pages, but managed to cover every department and nearly every product category in the store. Although the category buyer dictated which products were featured, the creative team would work to devise a theme for each insert to ensure that layouts and copy promoted the chain’s umbrella campaigns or highlight entire categories rather than individual SKUs.
@Gamer
Best Buy also used to distribute an official video-game magazine, @Gamer, containing news, previews, reviews and features on recent, current and upcoming video game releases. The monthly magazine promised at least $100 in exclusive coupons per issue, before going digital in 2012. The digital version also no longer exists.
Loyalty Programs
Loyalty Programs
My Best Buy Memberships
Best Buy has revamped its loyalty plans many times throughout the years. It has approximately 100 million people in the program, and around 40 million to 45 million memberships are active.
In mid-2023, the retailer launched a new three-tier Best Buy Memberships program as budget-conscious consumers dial back purchases of discretionary items.
The tiers include:
My Best Buy
The free core membership plan includes:
- Free shipping with no minimum purchase
- Access to purchase history, online order tracking and shipping information
- Quick checkout and an add-to-wishlist option
My Best Buy Plus
The plan costs $49.99 a year and Includes My Best Buy benefits plus:
- Exclusive member-only pricing
- Exclusive access to sales, events and products
- Free two-day shipping with no minimum spend
- An extended 60-day return and exchange window on most products
My Best Buy Total
This plan replaces Totaltech, which was introduced in 2021, costing $199.99 a year. It had 5.8 million members in early 2023.
This new plan, at $179.99 per year, includes My Best Buy Plus benefits as well as:
- Free round-the-clock Geek Squad tech support, no matter where the tech was purchased
- Access to a 24/7 VIP service with dedicated phone and chat teams
- Up to two years of product protection, including AppleCare+, on most Best Buy purchases made while being a member
- 20% off labor for repairs
- Periodic discounts and special offers on services like in-home installation and haul away
Plus and Total members also are eligible for special offers and savings during events such as Black Friday in July (See Promotional Strategy) or member exclusive sales weekends.
Credit Cards
Citigroup issues and manages Best Buy-branded cards in the U.S.
Private Label
Private Label
Best Buy is continually working to hone its private label and branded exclusive product assortments. For over 15 years, the retailer has been manufacturing hundreds of products under its private label brands, including:
- Geek Squad: Arguably the most well-known, this brand provides services like computer repair and installation. It used to also offer high-end computer accessories and a product line of “easy-to-use” computer cables, UPS backup systems and flash drives with orange-and-black Geek Squad packaging.
- GreatCall: After acquiring the business in 2018, Best Buy owns the connected health tech company’s services as well as product offerings including the Jitterbug cellphone and its health and safety packages.
- Insignia: Best Buy’s flagship private label, encompasses a wide selection of electronics equipment including televisions, car stereos, home theater systems, and portable video and audio players. Last year, Best Buy and Amazon teamed up to launch Fire TV Edition televisions from Toshiba, and more recently, Insignia. Insignia competes with popular brands like Samsung, Sony and LG.
- Modal: Created by design firm Ziba to help Best Buy “revive and consolidate” their house brands, the bright and youth-oriented brand formerly only available online spans Bluetooth speakers and headphones as well as accessories for phones, wine and other electronics.
- Dynex: The product offering spans a wide variety of economically priced computer and entertainment accessories such as storage media, data and power cables, webcams, office supplies and basic electronics such as tube televisions.
- Rocketfish: Products include high-end cables used with home theaters as well as computer accessories.
Many exclusive products and offerings typically employ an “only at Best Buy” logo online and in stores.
Best Buy often uses real insight from its Blue Shirt employees and customers in product development and brand promotions. Many of its private label and exclusive products have won awards, like in 2017 when seven Insignia refrigerator models were named Energy Star Most Efficient products.
The chain also actively seeks exclusive merchandising partnerships.
Cause/Community Programs
Cause/Community Programs
Best Buy’s philanthropic focus on teens is called @15. The retailer runs several teen-focused programs through its own Best Buy Foundation:
- Best Buy Teen Tech Centers provide a safe place to explore and collaborate with technology. In fiscal 2022, Best Buy had 47 centers in operation, with plans to have 100 locations nationwide by 2025.
- Best Buy Teen Tech Summits bring together employee volunteers and teens through technology workshops held at local nonprofits
- Geek Squad Academy provides hands-on, interactive technology camps for kids ages 10 through 18.
The Foundation also provides funding to strategic national nonprofit partners that provide teens with the benefits of technology, including Boys and Girls Clubs of America, Common Sense Media, Dreaming Tree Films, Intel Computer Clubhouse Network, Making Opportunities for Upgrading Schools & Education, and National Urban League. Through its Junior Achievement partnership, Best Buy is also an exclusive sponsor of JA Titan, a game that teaches students how to run their own businesses.
Environmental
Best Buy has stated a commitment to conserving natural resources, reducing waste in its operations, lessening its carbon footprint, and offering products to further sustainability.
In 2024, Best Buy partnered with How2Recycle, which has a labeling system that provides on-package disposal directions. Small accessories such as iPhone cases, chargers and watch bands will be the first products to bear the instructions.
Best Buy also joined the Sustainable Packaging Coalition, in an effort to cut waste and recycle more. The retailer is also making changes to some of its Insignia brand TV box packaging, to better ensure it's manufactured from sustainable sourced paper certified by the Forest Stewardship Council.
In 2023, the retailer introduced a nationwide program that allowed customers to recycle old electronics by ordering a prepaid Best Buy Technology Recycling Box, filling it with old equipment, and dropping it off at a UPS location or scheduling a pickup. The cost for the boxes ranges from $22.99 to $29.99.
Some of the other things Best Buy is doing to further sustainability include investing in solar fields to lower dependence on carbon fuels, electrifying its fleet, and recycling and repairing consumer products, thereby supporting the circular economy. Its goal is to be carbon neutral across its operations by 2040, and to lessen carbon emissions for its customers by 20% by 2030.
Advertising Strategy
Advertising Strategy
Tagline: "Let’s talk about what’s possible"
Primary media: Digital advertisements, and some national and local TV.
The retailer has regularly used broadcast advertising, running its first-ever Super Bowl TV spot in 2011. Integral to the marketing message is the expertise of the “Blue Shirts,” Best Buy’s sales associates, who dress in bright blue polo shirts and khakis. Most TV spots depict in-store events in which the Blue Shirts help customers select products to satisfy their needs.
In recent years. Best Buy has devoted more of its ad spend toward digital and targeted advertising and shifted somewhat from its "Blue Shirts" focus, but in 2023, Best Buy Canada launched "A Day in the Life" ad campaign, reinforcing the tech expertise of its "Blue Shirt" employees while also appealing to budget-conscious shoppers who can buy their big-ticket items at the retailer and enjoy the know-how of Best Buy employees. DonerNorth created the ads, which aired on TV, online and social media.
You Found Perfect
For the 2023 holiday season Best Buy kicked off its You Found Perfect campaign, which focuses on fun and easy shopping experiences, the discovery of new technology, finding great deals, and the joy of giving the perfect gift. The ads include "Deals All Season Long," featuring office workers stealing a spare moment to shop; the return of 2022's "Playground" highlighting a father and daughter 's "playground" adventure at Best Buy; and "Shop with a Virtual Expert," showing ways customers can get help finding the perfect gift. The spots are running on TV, online and social media platforms. The TV and social video ads were created by Best Buy's in-house creative team. Best Buy's digital agency Accenture Song helped create the digital display, email marketing and audio work. The TV commercials were created with production partner X-15.
Special events are also a key element of Best Buy's advertising strategy.
Solution Providers
Solution Providers
- Creative: Crispin Porter & Bogusky, Coconut Grove, Florida
- Creative: Grey, New York City
- Rich Communication Services: 3Cinteractive, Boca Raton, Florida
- Media Planning & Buying: Starcom USA, Chicago
- Digital: Razorfish, New York City
- Multicultural: Tapestry, Chicago
- Digital: Olson, Minneapolis
- Digital and Social: Chi & Partners, New York City
- Experiential Retail: ESI Design, New York City
- Hispanic Marketing: La Comunidad, Miami
- Animation: Gasket Studios, Minneapolis
- Best Buy Home Life: Barrie D’Rozario DiLorenzo, Minneapolis
- Event Marketing (Fun Zone): GMR Marketing, Milwaukee
- Social Marketing: Shoutlet, Madison, Wisconsin
- Digital circular: Flipp, Toronto
- Omnichannel retail service agency: Bluebird Group, Minneapolis
Marketing Expenditures
Marketing Expenditures
Best Buy's advertising expenses were
- $794 million in fiscal 2024,
- $864 million in fiscal 2023,
- $915 million in fiscal 2022, and
- $819 million in fiscal 2021.
The retailer's marketing spend is primarily digital advertisements.