When we covered Best Buy’s strong start to 2021, we noted that the brand was positioned exceptionally well for the recovery period. And while our overarching affection for the brand and its powerful strategic decisions are clear at this point, recent data only deepens our expectation for a very strong 2021.
Best Buy’s Visit Strength
Since retail saw a surge of pent up demand driving high visits in mid-March, Best Buy has seen steady growth when comparing weekly visits to the equivalent weeks in 2019. Since the week beginning March 15th, only one week saw a visit decline when comparing to 2019, and the week of April 12th saw visits up 11.5% – the second best result since the pandemic began.
But there is more to the story that creates even greater optimism. While Best Buy is doing well, the wider electronics category is also seeing strength. And while the sector isn’t outperforming Best Buy, it does speak to a great brand operating in the right sector.
And the bullishness only increases when looking at visit breakdowns in several key states. While California, Texas and Florida are all trending along with the wider nationwide pattern, New York is still trailing behind. Considering the large number of locations in the state, and the slower retail recovery overall in New York, the brand could see another round of pent up demand as New York locations return to normal patterns.
Another of Best Buy’s unique superpowers is that for an electronics focused retailer, they have a very wide reach. From gaming to health, Best Buy has established itself as a leader across several key segments. And one that could give even more power to the coming months is its impact on office supplies. The office supply sector is seeing an added boon because of the return to office work and the rising importance of the home office. Best Buy is uniquely positioned to help both – but especially the latter – following the company’s subscription service model. Considering that Staples saw growth compared to 2019 the week of April 12th, there may be even more value to be found in this space than initially expected.
Best Buy is showing real strength. But even more impressive than the initial results, is the reality that this strength is unlikely to wane, and may actually even pick up strength in the coming months.
To learn more about the data behind this article and what Placer has to offer, visit https://www.placer.ai/.
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