Best Buy's Goals: Cost-Cutting, Stronger Online SalesNovember 13, 2012 By Stephen Silver
Best Buy's new CEO Hubert Joly held his first analyst and investor day Tuesday, filling in Wall Street on his strategy for turning around the struggling big box retailer.
According to a statement released before the event, the turnaround strategy is known as Renew Blue, and initiatives include rejuvenating the consumer experience, developing a new "multi-channel shopping experience," offering new benefits and exclusive membership programs, and working with vendor partners to innovate.
The company also plans to improve its return on invested capital, including by "taking unnecessary or unproductive costs out."
"Our recent performance has been unsatisfactory in a number of areas. While we are the 11th largest e-commerce player in the U.S. across all product categories, we have been too slow to capture our fair share of the online channel," Joly said in a statement.
"While our customer satisfaction has been increasing in the last months, we have room for improvement. We have been suffering from a price perception issue. And, although our operating metrics are among the highest in the industry, our top line and bottom line performance have been declining.