Best Buy Co., Inc. (NYSE:BBY) has been in financial trouble for the past few years. Sales have been declining and the company is now losing billions of dollars.
New competitors to the electronics business, both online and at bricks-and-mortar locations, are taking sales that Best Buy could once count on. As a result, Best Buy has been on a mission to find ways to rejuvinate sales. Small-format stores that sell mobile products are popping up around the country and some of the larger versions are starting to disappear.
But what if what Best Buy really needs is a shift in the electronics it’s trying to sell us? Moving into (gasp) electric vehicles and solar is a move the company should seriously consider.
Do something we can’t
Best Buy Co., Inc. (NYSE:BBY) has gradually been moving into the service business for years. Go to the company’s website and you can see services for home theaters, computers, car GPS, gaming, and many others. Geek Squad has become a do-it-all electronics arm for the company to sell electronics to consumers.
If you’re buying a large home theater system or need some computer help, this is a valuable servicem and it’s one of the reasons Best Buy can compete with Amazon.com, Inc. (NASDAQ:AMZN), Target Corporation (NYSE:TGT), and Wal-Mart Stores, Inc. (NYSE:WMT). But this may just be the start for Best Buy.
The company recently announced a deal with Ford Motor Company (NYSE:F) to provide electric charging station sales, installation, and support. Ford’s dealers don’t want to become on-call electricians who go to your home and install a car charger, so Best Buy does it. The service side of the business is already there, so it’s a natural fit for Best Buy.
This isn’t the first step into electric vehicles by Best Buy, so thinking it will play a role in the EV future isn’t a stretch. The company used to sell the Brammo Enertia electric bike and currently offers a number of electric car chargers. General Electric Company (NYSE:GE) is one of the brands Best Buy offers, and when you think about it, this is probably the best retail avenue for the electric equipment giant. General Electric Company (NYSE:GE) is building public charging stations, but where else does it get into the home? The Home Depot, Inc. (NYSE:HD)? Independent dealers? Best Buy has the showroom to make it a less intimidating purchase for consumers and the electronics expertise to get it installed.