8/26/14

Best Buy's online sales increase 22% in Q2

The consumer electronics chain says it generated $581 million online and that the web is increasingly taking foot traffic away from stores. Total sales declined 4.0% and U.S. same-store sales, including the web, declined 2.0%.

Allison Enright , Editor

E-commerce was a bright spot for Best Buy Co. Inc. in the second quarter of its 2015 fiscal year. The $581 million in sales the consumer electronics retailer generated online for the quarter ended Aug. 2 is a 21.8% increase from the $477 million it reported for the same quarter a year ago.

That web growth comes despite a 4.0% decline in total sales; Best Buy today reported it generated $8.90 billion in revenue, down from $9.27 billion a year ago.

Best Buy CEO Hubert Joly pointed out how consumers’ movement to the web is affecting store traffic. Domestic comparable-store sales were down 2.0%; Best Buy includes revenue from the web in its comparable stores calculation. “Consumers are increasingly researching and buying online. As a result, traffic to our brick-and-mortar stores continued to decline, yet our in-store conversion and online traffic continued to increase,” he said.

Joly cited the retailer’s ship-from-store program, higher average order values and better digital marketing programs that drove more traffic to BestBuy.com as reasons why online sales increased in Q2. 

 

For the three months ended Aug. 2, Best Buy reported:

For the six months ended, Aug. 2, Best Buy reported:

Best Buy is No. 15 in Internet Retailer’s Top 500 Guide. Internet Retailer estimates Best Buy’s online sales grew 19.69% from 2012 to 2013.

Topics:

Best Buy, e-commerce, e-commerce sales, Q2 2015 earnings, Top 500

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