Best Buy Holiday Sales Drop
Despite a relatively strong 2013 and a huge ad push, Best Buy posted comparable store sales down 0.8 percent over the same time last year during the nine-week holiday season.
“Our holiday revenues were negatively impacted by a number of factors, including: (1) the aggressive promotional activity in the retail industry during the holiday period, which we believe did not result in higher industry demand and had a deflationary impact on our revenue; (2) supply constraints for key products; (3) significant store traffic declines between “Power Week” and Christmas; and (4) a disappointing mobile phone market,” CEO Hubert Joly said in a statement.
Joly added that the company’s fourth quarter operating income with by 175 to 185 basis points lower than the previous year. And he said that the company’s main goals are to “quickly and more deeply lower our cost structure,” as well as speed up online growth, improve the multi-channel customer experience, enhance marketing effectiveness and grow the Geek Squad brand.