Best Buy accelerates mobile push amidst struggling sales
The big-box retailer looks towards wireless to stave off the effects of an economic recession
As Best Buy this week reduced its financial outlook for 2009 and hopes to also reduce its workforce through voluntary separation packages, the big-box retailer is looking toward an open approach to wireless to stave off the economic recession.
On Tuesday’s conference call for Best Buy’s third-quarter earnings, Chief Executive Officer Brad Anderson said rapid changes in consumer behavior had created the most difficult economic climate the retailer had ever seen. He described a period in which consumers could significantly shift their spending behavior, having a dramatic impact on retailing. In the midst of weaker sales across the board, Best Buy has been ramping up its presence in wireless, providing consumers with a carrier-free way of making their handset purchases going into the holiday season and 2009.
“We want to help consumers start to get more from their mobile devices, period,” said Scott Moore, vice president of marketing for Best Buy Mobile. “We think retail has a huge role. It’s very easy for a Blue shirt to say, ‘Hey I can show you something interesting?’ That’s the social aspect of the technology. If I come to your house for the holidays, you might show me something cool on YouTube on your computer or smartphone. That human interaction really helps, and we think our team is in a great place because of how we build relationships with customers to help speed this along.”
In the past year, Best Buy has invested more than $10 million to get its staff up to speed on the latest devices, wireless plans and trends. It carries about 95 handsets, including some of the most popular smartphones. Best Buy got the right to sell the 3G iPhone in September of this year, following its deal with Sprint to be the sole national retailer to sell the Samsung Instinct, Best Buy’s best-selling handset of the past two years. Best Buy now has 40 standalone, wireless-only stores in the US and three in Canada, including three new Mobile Life stores in Minneapolis, Chicago and Washington D.C.
“The more open it is, the better it is for consumers,” Moore said. “As a retailer, we are focused on getting the individual customer on the right plan, the right phone, and that is where this non-commission independent sales person really helps.”
Want to use this article? Click here for options!
© 2013 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now