Best Buy’s health offerings now serving 1 million seniors, with a goal of 5 million in fiscal 2025
Best Buy Co. Inc. says it’s now serving 1 million seniors through its health offerings, with the goal of serving 5 million by fiscal 2025.
Best Buy’s BBY, +11.21% health initiatives aim to help seniors stay in their homes, which they say reduces health-care costs and stress for families.
“Today, most of the seniors we serve are utilizing easy-to-use mobile phone products and connected devices that are tailored for seniors and come with a range of relevant services,” said Best Buy Chief Executive Corie Barry on the earnings call, according to a FactSet transcript.
Best Buy is also providing a “Five-Star Service” that connects customers with U.S.-based agents who can send emergency professionals, act as a concierge and more.
Best Buy has been making inroads into the health space through its GreatCall devices and services and the acquisition of Critical Signal Technologies, a monitoring business that has a supplemental benefit covered by the Medicare Advantage plan.
In addition, Best Buy has added a practicing emergency doctor, Dr. Daniel Grossman, as chief medical officer.
Besides the continued focus on health offerings, Best Buy also discussed fulfillment and delivery expansion, with New York prominent in the rollout and trial of new services.
During the quarter the company opened 175 alternate pickup locations at UPS Stores and CVS Health locations in New York, and curbside pickup is rolling out in New York. And the retailer is adding in-home advisors in order to capitalize on what the company sees as an “untapped opportunity” in the market.
In New York, Los Angeles and Chicago, online customers can order until 8 p.m. and receive their purchase for free the next day.
And nationally, the company has added 100 in-home advisors, with a total of 720 at the end of the quarter.
Also: With six few holiday season shopping days there’s no time for impulse purchases, which is bad for retail
Best Buy reported third-quarter earnings and revenue that beat expectations. Same-store sales growth of 1.7% also beat the FactSet consensus with the company, with appliances, tablets, headphones and computing the drivers.
The results sent shares soaring 9.5% in Tuesday trading.
Despite the good news, GlobalData Retail also identifies challenges, including a cautious consumer spending environment.
“Our data show that consumers are more reticent to buy big-ticket items now than they were at the start of this year,” wrote Neil Saunders, managing director at GlobalData.
Still, Best Buy has an advantage, thanks to a strong mix of stores and e-commerce, with data showing that customers who see an item in person are more likely to make the purchase.
Wells Fargo thinks tariffs could be an issue going forward.
Watch: Here’s how much speedy delivery really costs
“Q4 will be telling with six fewer holiday selling days, a ramping promotional environment and tariffs just beginning to enter the gross margin line,” analysts led by Zachary Fadem wrote. “Looking further ahead, we see reason for fiscal 2021 optimism on an improving product lineup (5G, 8K TV, gaming consoles), and easing compares, but in our view, tariffs remain the single biggest sticking point for shares today.”
Wells Fargo rates Best Buy stock market perform with an $85 price target, up from $65.
Best Buy shares are up more than 53% for the year to date, outpacing the S&P 500 index SPX, +0.25% , which is up 25.2% for the period.
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