Best Buy Relieved To Achieve Holiday Stability
Friday January 11th, 2013 - 2:01PM
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For the nine weeks ended January 5, Best Buy Co., Inc. announced revenues of $12.8 billion versus $12.9 billion for the same period ended December 31, 2011. Year over year, comparable store sales slipped 1.4%.
In the domestic segment, revenues fell by 1.2% to $9.9 billion and comparable store sales were flat versus the period last year. Best Buy recorded positive comparable store sales growth in mobile phones, tablets/eReaders and appliances, it stated. Entertainment, televisions and computing comps declined, the company said. Internationally, revenues gained 2.2% to $2.9 billion even as comparable store sales slipped 6.4%. The international segment comps slip occurred due to comparable store sales declines in Canada and China, the retailer stated. Best Buy noted that it reports sales results for countries in the International segment other than Canada on a one-month lag.
"One of the first priorities of our Renew Blue strategy is to stabilize and then begin improving our comparable store sales. During the most important period in the retail calendar– the holiday sales season– we were able to improve our Domestic comparable store sales trends compared to the performance of the last several quarters and continue our strong traffic growth in our online business. Our holiday selling strategy, backed by a compelling assortment, increased employee training and price match policy, allowed us to deliver these results," said Best Buy President and CEO Hubert Joly. "While it will be a journey with ups and downs, we are focused on becoming an increasingly effective multi-channel retailer and engaging with the tens of millions of consumers who shop us online and in-store."
In the Domestic segment, revenue generated increased by 10% versus the 2011 holiday season to $1.1 billion.
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Dissecting what Ron Johnson got wrong during his brief, calamitous term at the helm of J.C. Penney is sure to be the focal point of retail strategy and tactics lessons for years to come. But Penney’s future could still hinge to some extent on what he got right.