MINNEAPOLIS-For the holiday season constituting the nine weeks ending on Jan. 4, Best Buy logged sales of $11.5 billion, down 2.6 percent from the holiday season of last year.
In its statement announcing the results, Best Buy also said same-store sales for the period were off 0.8 percent, compared to a 1.7 percent decline from last year’s holidays. Comparable online sales jumped 23.5 percent, compared to a 10 percent gain from last year.
Hubert Joly, Best Buy’s president and CEO, attributed the results to the “intensely promotional holiday season. In both channels, the promotional intensity that began with Black Friday continued throughout the period, which led us and our competitors to answer one question: Do we make the incremental investment necessary to be price competitive and defend our market share?”
Joly added that, for Best Buy, “there was only one answer. To advance our Renew Blue transformation, it was imperative that we live up to our customer promises, and one of these promises is to offer our customers competitive prices.” Although this decision came with higher-than-expected costs, likely reducing Best Buy’s operating income for the fourth quarter, the price competitiveness combined with improved customer experience both in store and online led to a market-share increase for the retailer, Joly said.