Can Best Buy Call These New Results A Success?
Despite Best Buy’s (NYSE:BBY) third quarter loss of $10 million, which was brought about by shrinking sales online and in its big-box stores, Deutsche Bank analyst Mike Baker declared the electronics retailer won big on Black Friday.
How Did Best Buy Fair on the Biggest Shopping Day of the Year?
According to Baker’s analysis, 86 percent of the 260 stores he contacted nationwide reported that they were busy last Friday, an improvement over last year’s 83 percent. “Shoppers seemed to be primarily focused on tablets and iPads as well as smartphones,” he wrote in a research note. “We also believe that Wii U sold well. Flat panel televisions also seemed to be moving.” However, while store traffic was high, Baker’s research did not indicate how the traffic translated into sales. The retailer’s final sales figures could be muted if the Amazon (NASDAQ:AMZN) showrooming effect lowered customers’ purchases or if the retailer’s promise to match online prices of rival retailers cut into the company’s top line.
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Yet the results were far better than those of RadioShack (NYSE:RSH). Deutsche Bank reported that only 18 percent of its stores were deemed busy…