Best Buy Focuses on Efficiencies
In an attempt to exploit the connected devices trend and boost earnings, Best Buy (NYSE:BBY) has merged several of its retail groups into what it calls a “connectivity business group”. The group will sell everything from computers to tablets, e-readers and cellphones as well as associated service plans in Best Buy and Best Buy Mobile stores. Best Buy announced the news at a small media event held during the Consumer Electronics Show.
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The connectivity business group – Best Buy shortens it to CBG – sounds similar to what Best Buy has going with Best Buy Mobile, its standalone stores that sell cellphones and other cellular network-connected devices. CBG’s mission is comparable, but broader.
CBG is, in fact, bigger than Best Buy Mobile in every way. The group has in the neighborhood of 35,000 employees – about 15,000 from Best Buy Mobile and 20,000 workers who previously dealt with computers and tablets for regular Best Buy.
CBG’s product sectors account for more than half of Best Buy’s in-store business. They are also Best Buy’s fastest-growing sectors, with the exception of PCs, which is “stabilizing and coming back,” according to Best Buy President Mike Vitelli.
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