"Best Buy is preparing to fend off Wal-Mart's brutal price competition by giving consumers stores that are more interactive, Miguel Bustillo reports. Instead of being wowed simply by low prices, customers will be able to step into the world of a new videogame or see their faces captured by a high-definition video camera.
"The effort will be lead by current COO Brian Dunn, who takes over as CEO in June. A onetime Best Buy stereo salesman, he still believes that the best retail innovations come from front-line workers, and he has embarked on a tour of stores in search of inspiration for remodeling plans that he sees as a way to differentiate the retailer from competitors. "We want our stores to morph into a series of experiences," he says.
"Dunn says he intends to win customers by matching Wal-Mart on prices, and to build on Best Buy's existing strategy of helping customers navigate increasingly complicated technology. The key will be making the most of Best Buy's tech-savvy sales force, he feels."
Read the full article here.
1 comment:
As per my comments on the Starbucks article (March 17th), there's a lot to be said for using value-adds to avoid discounting the core products during a downturn. Once again I think the key is linking the two as a bundle, and here the issue would appear to be whether the traditional Best Buy customer will stay in-store because of these 'experiences'.
The Best Buy brand is only just entering the UK marketplace (via Carphone Warehouse) so it's difficult for me to speak from an informed position. My understanding is that their USP is a highly technical salesforce. I think people shop there because they're value conscious, and aware that, in technology, really understanding features is key to assessing the genuine price of something.
The 'experience' given as an example seems at face-value to be a bit gimmicky and therefore may not appeal to the existing customer they're seeking to retain.
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