Best Buy plans to boost sales with AI, new products, and customer-focused strategy

From CNBC: 2024-07-23 05:00:01

Best Buy is ramping up efforts to boost sales, adding trained sales teams, creating more YouTube videos, and launching a new marketing campaign. The retailer has reported declining sales for the past 10 quarters, and revenue is expected to range from $41.3 billion to $42.6 billion, a decline from $46.3 billion last year.

Best Buy is banking on new product launches and AI-enabled devices to drive sales. The company is hoping to reverse a two-year sales slump and capitalize on a replacement cycle of pandemic-era purchases. The retailer has seen recent growth in laptop sales and is anticipating revenue slightly below pre-pandemic levels.

Best Buy plans to focus on innovative tech products, ranging from new iPads and smartphones to smart rings with health-tracking features. The retailer has been striving to offer cutting-edge technology to attract customers to its stores and website. The company’s new marketing campaign will feature a “spokeshologram” named Gram and a tagline “Imagine that.”

Best Buy will adopt a more customer-focused strategy, emphasizing time-saving and convenience features over tech specs. The retailer plans to introduce more experiential displays in stores, enhance its app with personalized features, and roll out over 500 videos on its YouTube channel, app, and website. The company aims to bring a ‘What if?’ question to life for its customers.

Despite facing challenges over the past three years, including declining sales, Best Buy is optimistic about its future. The retailer has struggled with weaker consumer electronic sales due to various factors, but hopes to rebound with a sharper customer strategy and a focus on innovative products. Best Buy will implement these changes with a tighter budget, cutting spending on store remodels.



Read more at CNBC: Best Buy unveils plans to grow sales, cash in on AI