Best Buy (NYSE: BBY) has gone from being on the ropes to being in the driver’s seat. The consumer electronics retailer, which not so long ago was struggling for survival, has turned things around and is once again looking like a major player during the holiday shopping season. Once written off as a “showroom” where consumers looked at items only to buy them cheaper online, the chain has managed to lure traffic into its stores and website, and convert those visits into actual purchases.
Best Buy has become a Black Friday destination — a chain where people camp out, waiting for the doors to open. This year should be no different, though people won’t have to wait so long outside, as the company’s big plans include opening at 5 p.m. on Thanksgiving.
What is Best Buy planning?
The electronics chain already has revealed some of its holiday deals at BestBuy.com/BlackFriday. Some of those offers won’t be available until the big day, but others items are already being sold at their holiday markdowns online and in stores. On Thanksgiving, nearly all Best Buy locations will remain open until 1 a.m., and then reopen on Black Friday from 8 a.m. until 10 p.m. (with those same hours repeating on Saturday). On Sunday, stores open at 11 a.m. and stay open until 8 p.m.
Best Buy will also follow a recent trend and make many of its offers available on BestBuy.com.
“Online doorbusters and almost every item in the Black Friday ad will be available for sale on BestBuy.com throughout Thanksgiving Day, with additional deals available all weekend long,” the company wrote in a press release. “This year, online shoppers can take advantage of free shipping throughout the holiday season with no minimum order required and convenient in-store pickup options.”
What headwinds is it facing?
The chain continues to be aggressive, but its competitors are doing the same. Best Buy may have an attractive slate of deals, but its offerings are not all that different from the electronics for sale elsewhere.
This holiday season will be a pivotal one for Best Buy: It’s a test as to whether the company has rebuilt its brand as a destination or if it’s strictly a pricing proposition. Ultimately, the company will lose a pure price war, so the key will be its ability to attract customers based on service — the one thing it can offer that is superior to its online rivals and departments stores that happen to sell electronics.
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Daniel Kline has no position in any stocks mentioned.
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