An early proponent of buy online pick up in store, Best Buy is again looking to expand the role of its stores in the distribution and fulfillment process, the company revealed in its second quarter conference call.
Corie Barry, Best Buy CEO, stated that the company is launching a pilot program that will test a ship from store hub model to help handle significant volume pre-holiday and year-round. Stores will still ship out online orders, but about 250 locations will ship out significantly more volume, she noted.
Best Buy chose the pilot program locations for the amount of space they offered, proximity to carrier partners and ability to support same- and next-day delivery. The ability to use stores in the manner tested could allow Best Buy to deliver a more productive fulfillment model, Barry said.
In addition, Best Buy continues to add third party physical pickup locations for online orders, she pointed out, as the company works to enhance flexibility and customer convenience. The company now offers more than 16,000 pickup sites and 85% of the population lives within five miles of one, Barry maintained.