Dealer Profile: Best Buy Mobile Gains Traction
Best Buy's domestic comp store sales declined 5% in December, but without mobile phone revenues, it would have been worse. The company's domestic mobile phone comp sales increased in the low double digits, driven primarily by smart phones, and helped to off-set a 15.4% decline in entertainment software comp sales and a "low double-digit" decline in TV comp sales.
Yet at one time, Best Buy considered dropping the mobile phone category. About five years ago, consumers did not consider the national electronics retailer a destination for cell phones. Best Buy's miniscule market share in that category certainly didn't help.
"We knew we were in trouble," said Scott Anderson, senior director of Best Buy Mobile, recalling how company executives realized it was time to either get serious about mobile phones or leave the business. "It was about a 50/50 vote there."