Best Buy had the option to leave some stores open in March, when CEO Corie Barry voluntarily closed them all. When the coronavirus pandemic began spreading through the United States, Best Buy risked sending business to its competitors by closing its stores. But it also adapted quickly. Stores became pickup hubs for online orders. Its rapid transformation was thanks in part to its resourcefulness in years past, when the rise of Amazon and the demise of other electronics retailers prompted Best Buy to improve and expand its digital offering.
The electronics retailer has performed well during the pandemic; despite the temporary store closings, it was still many consumers' go-to destination for the products they needed to work from home. But analysts are sounding a note of caution. The economic outlook is becoming increasingly uncertain, costs associated with fulfilling online orders are high, and competitors in the space are stepping up their game.
Despite a projected rise in consumer electronics' sales this holiday, Best Buy is fighting Amazon, Walmart, Target and Costco for customers. And unlike these rivals, Best Buy doesn't sell food and other household essentials, making it more exposed to a recession.