With the acquisition of Great Call, Best Buy is perfectly positioned to profit from catering to seniors’ health. Catering to the health of seniors is a gold mine. Focus on Senior Health: According to a report by Morgan Stanley, Best Buy can earn more from healthcare than electronics.Extensive Portfolio: Apart from its wide range of consumer durables, Best Buy also has its own brands like Magnolia, Insignia, Modal, Pacific Sales, and many more.70% of Americans live within 10 miles of a Best Buy store, which has increased sales and contributed to its profitability. Strong Market Presence: Even though Best Buy only has 997 stores in the US, the company has spread the stores evenly across the market.Its interest expense decreased from $72 million in 2017 to $64 in fiscal year 2020, while other retailers struggle with rising costs. Intensive Cost Management: Since 2017, Best Buy’s earnings have increased tremendously all thanks to its effective cost management.This unique mix is highly effective evidenced by the increase in Best Buy’s BOPIS (buy-online-pickup-in-store) by 40%. Additionally, it launched pick-up points in UPS and CVS locations for online customers. Unique BOPIS Mix: All Best Buy’s stores are used to ship online orders, with 93% of online order returns being completed at the stores.Best Buy invested heavily to incorporate stores into its e-commerce strategy leading to an increase in both online and in-store sales. Great Omni-Channel: A perfect store that encourages customers to stay longer and act on their impulses.Loved customers spend 1.5 times more than average. Best Buy is customer-centric and ensures its customers can access products and services either through tech support by Geek squad help or directly from a store employee. Impressive Customer Service: Love pays, it is as simple as that.Best Buy acquired Great Call in 2018 and its toolkit, Critical Signal Technologies, in 2019, which enabled it to enter into the senior health sector quicker than competitors. Strategic Acquisitions: In the past few years, Best Buy made several strategic acquisitions that enabled the retailer to exploit lucrative opportunities.Best Buy is tech agnostic and resolved this issue by offering the tools to compare brands, consultations with experts, and service for all the electronics it sells. Innovative Sale-Service Strategy: The challenge for most customers is the lack of info about different electronics.It operates a total of 1,231 stores spread across the US, Europe, Mexico, China, Turkey, and Canada. Market Dominance: Best Buy enjoys all benefits of being the largest and dominant electronics retailer.
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