It was a good quarter for online sales at Best Buy. The company reported that comparable online sales of $1.57 billion saw an increase of 25.8% over 2012, according to its earnings release.
However, Best Buy’s domestic revenue declined 1.8% over fiscal year 2012. The decline was primarily a result of the comparable stores decline of 1.2%.
The increase in online sales was driven by a higher average order value, improved inventory availability supported by the company’s ship-from-store and online distribution center expansion initiatives, increased traffic and higher conversion on both the core and mobile sites.
Best Buy boasts it has increased its domestic online sales by 20%, it has increased its price competitiveness and rolled out ship-from-store to more than 1,400 locations. The company has re-launched its loyalty and credit card programs and advanced the transformation of its online platform and customer database.
International revenue of $2.17 billion declined 9.6% over 2012. The decline was primarily a result of the negative impact of foreign currency exchange rate fluctuations, the loss of revenue from large format store closures in Canada and China, and the comparable store sales decline of 1.7%. The comparable store sales were negatively impacted primarily by declining industry trends in Canada and Mexico.
Best Buy exceeded its Renew Blue cost reduction target of $725 million by delivering analyzing Renew Blue cost reductions totaling $765 million.