An employee brought a TV to a customer’s car at the Best Buy store in Orlando, Florida.
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Best buy On Tuesday, it said it would launch a new annual membership program nationwide, including benefits that might encourage people to sign up: Access to hard-to-find items during the holiday season.
Totaltech, a consumer electronics retailer program, costs $ 199.99 a year. Participants receive unlimited 24-hour technical support, limited member prices for merchandise, up to 2 years of product protection for most purchases, free shipping and installation, a 60-day extension for returns and exchanges, and more. .. Other features.
Best buy Started testing the program at some stores During April.
Retailers are addressing holiday-specific benefits as pandemics add to global supply chain challenges.Occurrence COVID-19 Temporarily closed some factories and ports Causes a shortage of semiconductor chips It goes everything from cars to laptops. Freight rates are skyrocketing and ports are congested, resulting in higher customer prices and fewer products on shelves.
Retail analysts predict increased holiday spending, Warning about reduced transactions and delayed deliveries.. They encouraged consumers to start shopping early and buy what they want when they see them.
Best Buy does not specify high demand products available to Totaltech members, but from the video game console Apple product. According to the news release, participants will have access to Member Monday. This is a special event for a special sale that starts on October 18th and runs over the holidays.
The event also includes transactions for customers participating in Best Buy’s free membership program, My Best Buy.
With the launch of Totaltech, Best Buy Phase out membership programs with similar names There were few benefits.
In last week’s research note, Piper Sandler’s retail analyst Peter Keith said Future release of Totaltech “Potential Game Changer” For the company and its stock. He said the membership program is “one of the most interesting initiatives” that Best Buy has been doing for over five years. In addition, he said it would come because the company’s stock is trading at a low valuation.
Best Buy shares rose 1.3% to close to $ 107 on Tuesday. This year’s inventory has increased by 7%.
Piper Sandler rates Best Buy as overweight, with a price target of $ 150, about 40% higher than where it is currently trading.
Keith estimated in a research note that Best Buy would add 3 million new members in addition to the approximately 3 million people that are part of the phased deprecation membership program. He said retailers are hoping to expand their membership base from 6 million to 10 million over time.
Keith also expects Best Buy to help raise awareness during the holiday season as Best Buy promotes the program and customers see member-only price discounts on retailers’ websites and stores. Said.
Best Buy has adopted the Totaltech membership program nationwide
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