Back at the very beginning of Amazon’s run to the top of every major retailing category known to man, there was one brick and mortar retailer that many expected to be one of the first to succumb to Jeff Bezos’ ruthless retail strategy. It’s no big secret (they’re name is up in the headline). But while it did take a major beating for a number of years, Best Buy has proven that investors’ concerns are unfounded.
In its latest earnings report, scheduled for next week, Best Buy is expected to report strong results for its quarter that ended in July. This would follow up an impressive Q1 performance that many analysts weren’t expecting.
To understand just how well Best Buy actually is performing of late, just consider some of the numbers that CNN Money shared on Wednesday:
The company’s stock is up 55 percent this year and close to a record high; Amazon’s is up 30 percent
Since Hubert Joly was named CEO in 2012, the stock price is up 240 percent; Amazon’s is up 300 percent in the same time period, while the average increase for the S&P 500 is just 25 percent
Online sales during the most recent quarter (ended in May) were up 23 percent—an important statistic as Best Buy attempts to go toe-to-toe with Amazon
The positive performance has been helped by an unexpectedly strong video game industry—sales of the Nintendo Switch and Nintendo retro consoles provided a major boost—and a solid quarter for appliances.
Mobile Payments Skyrocket
— FGRT (@FungRetailTech) August 23, 2017
I’m not about to try to convert U.K. pounds to U.S. dollars, but the high-level statistic that the Retail Gazette reported on should drive the point home here: Mobile contactless payment transactions (meaning things like Apple Pay and Android Pay) are up 336 percent so far in 2017. Further, the Wordplay report said that £9 billion has been spent through contactless payments during the first half of 2017, compared to £10 billion all of last year.
Once looked at as a gimmicky tech that had little hope of ever gaining traction, contactless payments are proving to be convenient for consumers and a legitimate way for retailers to up their POS tech game.
More CE News
- Carrier sources are reporting that the Apple iPhone event date is set for September 12.
- Huawei is expected to show off some impressive gains in the artificial intelligence space during its press event at IFA 2017 next week.
- Samsung launches their Note 8 today, and while the expectations are low there’s one small but incredibly significant hurdle that the device has to overcome.