Despite Best Buy’s sales and earnings dive, its problems are not unique to the chain and, in fact. almost every player in consumer electronics is undergoing the same structural shift. But Best Buy, as a dominant force, is seeing it first.
So says the NPD Group’s Stephen Baker in a blog that claims, Best Buy has actually increased its share recently in many categories including TV, mobile phones and notebook PCs. The chain accounts for nearly 1 in 3 dollars spent on flat panel TVs. It sold more tablets than any other retail store or web site in 2011. Its cellphone unit share grew by 25 percent in 2011 and its smartphone share increased by 50 percent.
Despite the market shifts to online retailing, Best Buy has retained its 19 percent share of the consumer technology market in revenue.
Baker concludes, “While there are challenges ahead, Best Buy remains the dominant retailer and in the best position to succeed in the coming years.”
See the full blog here.
Source: NPD Group