Best Buy: The Analytics Behind How Best Buy Survived Amazon
Amazon was supposed to kill physical retail. Why didn’t Best Buy crumble?
As eCommerce emerged, brick-and-mortar retail was supposed to fade. Why go to a store when the product could show up on your doorstep?
A retailer that should’ve been susceptible to this collapse is Best Buy. They had large stores and commodity products in a competitive industry.
How did they survive when others failed?
Best Buy isn’t in hyper growth mode — their revenue is still around 2010 levels and store count is down — but they weathered the first wave of Amazon’s retail disruption and have emerged as a viable retailer in the new era.
Two key factors underpin their resilience:
- Physical stores still matter for large ticket purchases
- Best Buy hasn’t stood still as the retail landscape changed
Recent results reflect this resilience.
Foot traffic to their stores has risen each of the past 2 years and revenue in the pandemic was the highest in a decade.
This week we’ll dive into why Best Buy’s stores have enabled — not hindered — success, the ways they’re adapting to retail’s new era, and the…
