![]() “In an economy facing inflationary headwinds, expansion of the outlet channel should be a winning strategy – and in offering same-day delivery, BOPIS, a convenient way to check inventory online and an in-store Geek Squad, Best Buy isn’t cutting corners, which will easily differentiate it from other outlets,” wrote Jeff Hall, president of Second to None. Harmon said that 16 percent of customers shopping at Best Buy’s outlets are new to the chain and 37 percent are “re-engaged.” The outlets also help Best Buy attract new customers and engage with others who have not recently shopped from the chain. “If Best Buy needs more space in existing prime stores to sell full margin product and maximize gross margin dollars then this sounds great.” “This sounds like a ‘best use of space’ strategy as much as, if not more than, an ‘outlet store’ strategy,” wrote Jeff Sward, founding partner at Merchandising Metrics. In FY ’22, gross liquidation recovery rate is almost two times higher than alternative channels.” The outlet stores serve a number of functions for Best Buy.ĭamien Harmon, executive vice president, omnichannel at Best Buy, in March on the retailer’s fourth quarter earnings call said, “These outlets unlock value by alleviating space and capacity from our core stores, and they are an important element of our circular economy strategy by providing a second opportunity for products to be resold instead of ending up in the landfill. The retailer uses third-party service providers including Bungii and Dolly to make deliveries. They can also place an order for any product and choose to pick it up at a nearby outlet.īest Buy’s outlets also offer same-day delivery of online orders. ![]() Shoppers can go to /outlet to check out what’s available at their local store. The chain is integrating outlets into its digital operations, as well. “Outlet stores are a strong strategy for minimizing risk during economic uncertainty when consumer spending is more focused on value spending.” “Outlet stores will help Best Buy deal with excess, open box or returned goods while keeping that revenue in house, promoting the sale of services like installation, and controlling the brand messaging end to end,” wrote DeAnn Campbell, chief strategy officer at Hoobil8. ![]()
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