Complete Story
11/21/2017
Best Buy, Wal-Mart show how to use bricks-and-mortar in digital world
Walmart posted a 2.7% increase in Q3 same-store sales for its namesake US business, its best performance in more than eight years, but don’t just credit the retail giant’s fast-expanding online operations: the unit's online sales rose 50%, but contributed less than one-third of the total comparable sales growth.
The results are another sign there’s room for physical retailers to thrive. As much as Amazon has been blamed for industry disruptions, what separates winners from losers is often about who gets the basics right in the first place.
Best Buy, which also reported results on Thursday, is another example of that dynamic. It posted a 4.5% growth in Q3 US comparable sales, outperforming the industry average, as online sales rose 22%. CEO Hubert Joly said Thursday that Best Buy’s store employee turnover rate is at an historical low as Best Buy has increased employee training and compensation.
“If you have lower turnover, people are more proficient,” he said on a conference call. “It’s a reflection of more engagement…. Great employee experience (results) in a great customer experience.”
