CNN reports that Best Buy, having survived and even thrived despite tough competition from the likes of Amazon, now wants to "expand its footprint into health, fitness, personal electric transportation, outdoor products and other potentially big ticket areas outside of its core consumer electronics business.
"It's adding merchandise to stores in dedicated sections, such as Hydrow and NordicTrack home gym equipment, Super 73 and Segway e-bikes and scooters and Weber outdoor grills."
"We're expanding our addressable market by entering new categories in areas like health and electric bikes that are being disrupted by technology," said CEO Corie Barry. "Forty percent of Americans use digital technology or the internet in new or different ways compared with before the pandemic."
Best Buy has about 1,000 stores, but plans to close almost 10 percent of them - as many as 30 a year over the next three years - as it "addresses the shift by its customers to shop more online."
- KC's View:
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Retail analyst Neil Saunders said last week that Best Buy "is a solid, well-run business with a clear vision. However, there is no denying that it is now in a more challenging place."
No kidding.
I have an idea, though. Best Buy could buy Peloton, and merge the latter's workout instructors with its Geek Squad. I think that there are some enormous opportunities here … just imagine what it would look like if you cross-linked the DNA from these two images (from the Best Buy and Peloton websites)…
