Last month When Best Buy Co., Inc. (NYSE:BBY) revealed its new rewards program uttering on the word “my.” From the Macy’s, Inc.(NYSE:M) department-store chain My Best Buy sounds a lot like “My Macy’s”, from home-improvement retailer Lowe’s Cos it focus on “MyLowe’s”. And also Zoeller Co.’s uttered word “MyPlumbingStuff.”
Chief Executive Officer Hubert Joly of Best Buy said that two-letter word had a more meaning to improve its retailer’s e-commerce operations than from its rivals. Joly is the first person who cuts $390 million in annual costs and also matches online prices to its rivals. This helped to establish confidence in store’s investors. In January the stocks were traded at 86 percent discount at Standard & Poor’s 500 Index has tripled this year and closed at a 7.6 percent premium to the index yesterday.
Best Buy Co., Inc. (NYSE:BBY) can improve its brand recognition through the largest consumer-electronics retailer that grab e-commerce share. According to data from Compete.com these efforts already give benefits that traffic at Best Buy increase 9.9 percent in August from last year. Through his effort Joly is working to convert online visitors into buyers. According to UBS AG.Slightly almost one of every 100 visitors makes a purchase.
Joly makes extra efforts to put Best Buy alongside its competitors. For this purpose, he hired Scott Durchslag as president of Best Buy’s global e-commerce operations as soon as he becomes CEO of the company. Sharon McCollam becomes Best Buy’s chief financial officer and chief administrative officer. Now Joly is planning to hire more engineers, Web architects, and other technology workers.
The task of the team is to start adding more product reviews and buying guides to the website that allow visitors to purchase when they check out the extra material.
“My Best Buy” has some new innovative features that allow Mobile-phone users to earn points by just clicking on an application when they are in stores. Gary Balter, an analyst at Credit Suisse Group AG in New York said that Best Buy is now rewarding loyalty award like airlines and hotels.
These new features and changes helped Best Buy’s online sales rise to 11 percent in its second quarter. It generates U.S. online sales of $477 million in the second quarter. This growth is still lower than Amazon.
Last month Joly told to analysts that in holidays company is planning to expand its home delivery service to more than 200 stores from 50. This expansion helps to sale more inventory that otherwise may have gone unsold or which are sold on discount.