||From Thanksgiving to Cyber Monday, electronic retailers like Best Buy were happy at the pace of holiday sales. The recession appeared to be on an upward swing, however, it doesn't appear the flame lasted. Best Buy appears to be awaiting holiday sales figures they did not expect.
Morningstar retail analyst R.J. Hottovy stated in a MPR News report that Best Buy will be disappointed with low sales this holiday season. "It really has not been a great holiday season for them in our mind.
Certainly, we have seen a continuation of a lot of the same trends that have put pressure on the fundamentals in recent periods, namely a lot of people shifting their consumer electronics purchases online", stated Hottovy. He stated Best Buy stores that were open 14 months had a 4 percent decline in sales. Amid aggressively pursuing sales growth through price matching and discounts, the company could suffer with low profits. Best Buy will be releasing their holiday sales results this coming month.
Their low holiday sales is no different from the overall holiday sales numbers for the retail industry as a whole. The Associated Press has already reported holiday sales increased only 0.7 percent, which is much lower than expected. Retailers and experts agreed holiday sales would go up at least by 3 to 4 percent, especially with the 4-day shopping explosion during Thanksgiving and Black Friday. Retailers experienced 4 days of $1 billion in sales. Even in 2011, still in the recession, retailers experienced a growth of 4 to 5 percent. Many are attributing the plummet of sales due to the uncertainty of the economy and the looming fiscal cliff this coming January.
Best Buy had high hopes, especially after stellar results on Cyber Monday. Experian Marketing released Bestbuy.com was the third most visited online retail site that Monday. They were good for Best Buy, however, were in no comparison to Wal-Mart and Amazon. The company has made a number of changes, even in leadership, to turn the ship around. Online retail sales continue to grow and is worth Best Buy pursuing different strategies like same-day delivery to achieve better results.
Retail giants like Wal-Mart and Amazon have begun to offer faster deliver of their products online. Wal-Mart currently provides same-day delivery in various cities and is testing the new service in San Francisco. Amazon Lockers are becoming more known, allowing their customers to have their online purchases delivered to these locations for pick up. Macy's and Target are also testing same-day delivery to capture some of the online market.
Same-day couriers like AQuickDelivery can assist online companies by offering the attractive delivery services shoppers want. From small packages to palletized freight, this Marietta courier can create courier logistic solutions that fit your business. Same-day delivery can be a huge advantage, even for Best Buy.
References: 12.24.12, MPR News, Martin Moylan, Best Buy reaps disappointing holiday sales; 12.26.12. Associated Press, US retailers report weakest holiday sales since 2008