Impact of Consumer Behavior
Best Buy has been affected by a decline in discretionary spending as consumers cope with inflation. The company is facing a lull following a surge in demand during the Covid pandemic. This has resulted in a waiting period for the replacement cycle of electronics like laptops and kitchen appliances to normalize. Additionally, new tech gadget releases are anticipated to drive future sales.
Strategic Adjustments
CEO Corie Barry announced earlier this year that the company would reduce its workforce and cut costs to manage the challenging retail environment. Although the number of layoffs was not specified, Best Buy’s employee count has significantly decreased from over 125,000 in early 2020 to around 85,000 as of early February 2024. The company also plans to close 10 to 15 stores in the current fiscal year after shutting 24 stores in the previous year.
