Exploring How Other Retailers are Adapting to an Omnichannel World
In the course of moving towards an omnichannel approach, Best Buy will close around 30 of its largest stores. It’s to enable customers to access options like in-store pickup or shipping from store.
Innovative solutions like these are helping keep Best Buy in business. Best Buy also is planning to revamp its business in order to compete with Amazon as well as other retailers on the internet.
Best Buy, one of the largest retailers in America, has shut down around 30 of its stores. It’s part of the company’s shift towards an omnichannel approach which will enable it to be more competitive against Amazon. As per Pioneer Press’ Tom Webb The move was initiated following Stephen Gillett, former Starbucks CIO was brought on board by Best Buy in order to enhance its mobile strategies. This is part of a larger effort to reduce its brick and mortar footprint.
The retailer is expected to increase its capabilities in digital as in addition to enhancing omnichannel customer service, including on-line and in-store pick up. The company has also expanded its customer service to accommodate the needs of customers with specific tech requirements.
Best Buy is a market leading provider of an experience that is omnichannel, which includes its physical, online and in-store stores. It has made it distinguish itself from its tech-nonchalant rivals. Amazon cannot match its trained employees, Geek Squad members and Home Advisors that provide exceptional customer support.
While Best Buy has been able to outdo Amazon with its consumer electronics offerings, its multichannel products face its own set of challenges. While Best Buy tries to expand its brick and mortar locations, interruptions in supply chain have hampered the sales during the holidays and rendered the company less competitive Amazon.
Supply issues can, however, affect the sales of Best Buy’s online stores. Best Buy has developed an omnichannel plan that leverages the stores’ 983 locations. Geek Squad uses these stores to serve as fulfillment and service centers. Customers are able to pick up or return items from the shop.
Best Buy swiftly switched to curbside pickup of online purchases in the course of the COVID-19 pandemic. The move was made to meet customers’ demands and resulted in an increase in sales on eCommerce. It’s still too early to determine the extent of this effect. In addition, the company recently launched Totaltech memberships that could help in reducing consumer electronic demand following the outbreak. Members spend less money and communicate more frequently with the business as compared to customers who are members. The membership fees can aid in building a more solid client-business relationship that could result in more sales over the long run.
It is possible to pick them up at the store.
In the process of moving into smaller stores and more sexier shops, the retailer is expected to close 30 of its largest locations. The retailer will invest 200 million to rebuild and keep its existing stores. The focus is on providing customer service which isn’t cheap. The biggest challenge for them is finding a solution to maximize the space of each store and increase the sales of 10% or more. Best Buy has decided to be modest and to open several smaller locations, while also recycling the existing stores for various purposes. It’s a straightforward yet highly efficient strategy which will ensure that Best Buy is better able to compete against Amazon as well as other giants of the internet.
Best Buy will close up to 30 of its largest stores as part of an omnichannel transformation. Corie Barry, the chief executive at Best Buy, says that the company is changing its physical presence.
The company was heavily dependent on sales from its stores for its online operations, however it has now reduced its workforce. The chain recently eliminated 5 000 full-time employees , and plans to shift the rest into part-time.
The company must implement the change to keep pace with the demands of consumers. The company has launched a trial program of small-format stores that are digital-first by 2021. They are about 15percent smaller than the standard Best Buy 35 to 40,000 square feet stores. The stores also adopt an entirely new approach.
The most efficient strategy for this is in the event that inventory is unified across all channels. Stock and orders can then be assigned to the closest storefront. Warehouse workers can know where their stock is at any time, which helps in planning and distribution.