In what may be the least surprising thing ever, retailer Best Buy (BBY) is out to get people to replace the various items that they bought back during the pandemic. While some of these are probably still in good shape, and others are somewhat useless now, Best Buy is out to push sales. The move didn’t sit well with investors, though, who sent shares down fractionally in Tuesday afternoon’s trading.
Best Buy wants to grow sales, which have been on the rocks lately. In fact, Best Buy sales have been in decline for the last 10 quarters. That includes multiple Christmas shopping seasons, which should have been Best Buy’s bread and butter. And with another one just a few months away, Best Buy’s push to pull sales makes sense.
But Best Buy is eager to turn things around, starting with putting dedicated staff members in key parts of stores and creating a series of videos designed to fuel customer interest in products. New marketing measures will feature a “spokeshologram” named Gram and will specifically target the back-to-school season, now roughly a month or so out.
Easing the Way with Deals
Best Buy is putting its money where its mouth is as well, firing up a slate of deals designed to pull consumers through the door ahead of the back-to-school season. Though many may have spent their shot going after deals on Prime Day, Best Buy is hoping to pick up some of the slack.
In fact, a new slate of deals was recently released with back-to-school in mind, including a slate of “dorm essentials” like laptops, tablets, and TVs. But there are also some less familiar items, like an adjustable standing desk and a dorm mini fridge from Insignia, Best Buy’s house brand.
Is Best Buy a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BBY stock based on eight Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 9.87% rally in its share price over the past year, the average BBY price target of $90.55 per share implies 1.97% upside potential.
