Best Buy logo and storefront on South Edmonton Common. Friday, May 20, 2022, Edmonton, Alberta, Canada.
Artur Widak | Nafoto | Getty Images
best buy said Friday it was laying off hundreds of store employees across the country as more shoppers shop online and sales of home appliances are sluggish.
A company spokesperson confirmed the layoffs, But refused to share a specific number.first reported news By The Wall Street Journal.
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In a statement, Best Buy said, “We are evolving our stores and the experiences we offer to better reflect the changing shopping behavior of our customers, and aligning our teams to continue delivering our expertise, products and services. We are evolving our methods,” he said. the best possible way. “
The retailer framed the job cuts as a change in priorities, with Best Buy saying it plans to add thousands of customer-facing employees and invest in growth areas such as its Totaltech membership program and health business. .
As of the end of January, Best Buy had more than 90,000 employees in the United States and Canada. That’s down from about 125,000 employees in early 2020, according to the company’s financial report.
The US job market remains strong and the labor market remains tight. The unemployment rate was 3.5% for him as more people returned to work after the coronavirus pandemic. According to a recent employment report from the Department of Labor.
But retailers, including Best Buy, became cautious This is because consumers are retreating in some categories such as consumer electronics. Retailers have seen sluggish sales of discretionary goods as consumers pay more for essentials due to inflation and spend money again on services such as booking flights and eating at restaurants. I was.
Best Buy also follows a period when many customers bought new laptops, kitchen appliances and home theater systems early in the pandemic. Much of what it sells is high-priced items that people don’t trade in often.
Digital sales have also become a more meaningful part of the company’s business. About a third of Best Buy’s U.S. sales came from its online business in the fiscal year ended late January, compared with 19% in the fiscal year ended late January 2020, the company said. CEO Corie Barry shared on the fourth quarter earnings call. Phone, chat and virtual sales are also growing, she said.
Still, the roughly 900 Best Buy stores in the US remain an important part of the shift. According to Barry, more than 40% of his online sales are picked up in stores.
