Best Buy Diversification – A loss of focus that undermines its core image

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Best buy

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has just announced that it will diversify its product range to sell grills and luggage. It sounds very exciting at first glance; There will be an outdoor living collection that includes grills and outdoor ovens from Traeger, Weber and Ooni as well as a new travel and everyday collection from TUMI.

However, I believe the company has lost its focus.

Best Buy is known for their selection of great electronics with brands like Samsung, SONY, Apple

AAPL
, and many more. Buyers trust Best Buy for their expertise in televisions, computers and anything electronic. Consumers also purchase records and kitchen appliances in-store.

Suddenly the company wants to compete with Home Depot

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, Lowes, Dicks and Academy Sports as well as ACE Hardware and True Value Stores all at once – with products that are mostly seasonal and not easy to store after the season. And that means elements need to be marked. Sure, outdoor grills will be in great demand as we get out of the pandemic, but I think current sellers have enough experience to effectively advertise the goods.

I think TUMI travel gear should be available in stores that sell complementary travel items – even clothing, unless Tumi management believes that most department stores are disappearing. (I don’t think that’s the case). I would have a hard time thinking of Best Buy as my source of luggage, and I would worry that choices in some stores would be minimal. Then I am told that I could have it monogrammed when I go to the TUMI store. I could buy it there too.

I really appreciate the management at Best Buy. Following the guidance of Hubert Jolly, CEO Corie Barry has great ideas on how to motivate her employees. In 2012, he revived the company to a level unique in commercial history. Corie didn’t read the retail history books, however. When JC Penney

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When furniture and carpets were reintroduced, they found that customers were no longer interested and were not justifying the cost. The section has reinstated a new management team. There are many such examples of stores adding goods only to find that the products were not mainstream for their brand. they just let them down.

In my opinion, Best Buy’s management should focus on the core range, expand it and have the latest models available as soon as possible. You should have kitchen gadgets and everything in home entertainment. You should only consider extension extensions that fit the profile of the customer who is “at home” and enjoys watching sports and other entertainment.

If management wants more traffic to their stores, there are many ideas I could suggest. This includes flowers, hot dogs, a bank, family wellness (which has been initiated), or sporting goods (a category which has become electronic). These types of items fit their customer profile and even provide an excuse to spend more time in the store. Though I suspect Best Buy will be adding patio furniture soon when the sale grills before following my advice.

Businesses that have kept their customers and their image in focus have been very successful. Best Buy’s image is a top electronics retailer. That won’t go away. It should be improved and kept as a business priority.



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