Best Buy Co., Inc. (BBY): Big Things Are Happening at This Retailer

There has been talk of Amazon offering same-day delivery for quite some time, but it just doesn’t make sense given the average distance between a distribution center and the customer. But, a company like Best Buy, with 1,000 stores, could conceivably offer same-day delivery in the future. Amazon’s business model has limitations which put it at a disadvantage.

The bottom line

Best Buy Co., Inc. (NYSE:BBY) is making a serious effort to make itself more efficient, revamping its supply chain and prioritizing online sales. The company should be able to achieve significant cost savings from the new system and even more cost savings from selling returned items itself. Online sales could start growing very quickly for Best Buy from here on out, and I wouldn’t be surprised if the company eventually becomes the number two online retailer in the country behind Amazon. Big things are happening at Best Buy, and Amazon should be concerned.

The article Big Things Are Happening at This Retailer originally appeared on Fool.com and is written by Timothy Green.

Timothy Green owns shares of Best Buy. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com. Timothy is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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