Best Buy is Spending Millions to Maintain Its Sales Momentum
by John Kell
Retailer is planning to spend $650 million to $700 million in the current fiscal year on capital expenditures, up from $550 million last year.
Can Best Buy maintain its momentum?
The electronics retailer on Tuesday said its U.S. same-store sales increased for two consecutive quarters — the first time that’s happened in nearly five years — and outlined plans to spend millions more to ensure it can maintain that growth rate.
The retailer, which reported a 77% jump in quarterly profit, is planning to spend $650 million to $700 million in the current fiscal year on capital expenditures, an increase from the $550 million it spent last year. It will spend more to improve the customer experience in brick-and-mortar retail stores and online, as well as on marketing and information technology. Supply chain and the way Best Buy handles returns and damaged goods are other areas of focus.
“To win, investing now is imperative,” Best Buy’s Chief Executive Hubert Joly told investors during a conference call.