Best Buy Online Revenues Up 15.1%

Content Manager

Best Buy’s third-quarter domestic online revenue increased 15.1% to $499 million, the company said Nov. 19 in its earnings release.

According to the release, the domestic online revenue increase is due in part to increased traffic, higher average order value, a higher number of online orders being placed in retail stores and higher inventory availability supported by the company’s ship-from-store, and online distribution center expansion initiatives.

Best Buy president and CEO Hubert Joly said the company is enhancing the multichannel convenience of shopping at Best Buy by offering its customers a significantly improved online experience, made better by improved site navigation and search, new buying guides,  and an increased numbers of customer reviews.

Overall, Best Buy’s domestic revenues increased 2.3% to $7.8 billion for the quarter.

Best Buy’s international revenues for the quarter declined 11.3%, driven by a comparable store sales decline of 6.4%.  The result of  loss of revenue came from 15 large format stores that were closed last year in Canada and 20 large format stores that were closed in the past year in China and the negative impact of foreign currency exchange rate fluctuations.