Best Buy operates 1779 shops in the US, Canada, and Mexico as a worldwide retailer of consumer electronics, James Wheeler and Richard M. Schulze established the business in 1966 and it is headquartered in Richfield, Minnesota. Let us see some competitors of Best Buy.
Best Buy has grown through time to become the biggest retailer of consumer electronics in North America. Best Buy converted four of its locations into fulfillment hubs to develop robust ship-from-store capabilities in 450 stores in 2020.
A new program called Shipt Driven was introduced in September 2020 and it improves Best Buy’s pickup and delivery capabilities massively.
Who are Best Buy Competitors?
As of 2022, Costco, Walmart, Amazon, and Target are Predominant Competitors of Best Buy. Given their ability to purchase goods at deep discounts and resell them at higher prices, these wholesale retail companies pose the greatest threat to Best Buy.
Best Buy increased its domestic online sales by 242% to approximately $5 billion thanks to an inventive fulfillment strategy, increasing from 16% of the domestic sales mix in 2019 to 53% now.
The company’s operating expenses for the second quarter of its fiscal year, which concluded in August 2020, decreased by roughly $200 million a year while its overall quarterly revenue increased by 4% to $9.9 billion.
Do you want to know which other retailers Best Buy competes with and how they fare financially when compared to Best Buy? Discover all the remarkable information by reading through this post!
List of Best Buy’s rivals and alternatives
Here is a comprehensive list of Best Buy’s rivals and alternatives, along with a detailed analysis:
Walmart
Walmart, the biggest retail chain in the world, came in at number 19 on Forbes’ Global 2000 ranking of the largest public companies. It generated over $500 billion in yearly revenue in 2020, employed over 2 million people, and ran more than 11,500 branches in 27 countries.
There are many different consumer gadgets and household appliances available from both Walmart and Best Buy. Compared to Walmart, Best Buy specializes in consumer electronics. But Walmart has an advantage due to its substantial market share.
Amazon
A leader in worldwide e-commerce, Amazon. It has a large selection of consumer electronics that is comparable to Best Buy’s selection. In comparison to Best Buy, whose annualized revenue growth rate was 2.5% between 2015 and 2019, Amazon’s growth rate was 27%.
Amazon’s eCommerce and quick-moving delivery network are its key advantages. By 2020, Best Buy had boosted its digital sales by 242% and persuaded 41% of online buyers to use new fulfillment options like curbside.
Best Buy’s competitive advantage has grown thanks to its creative fulfillment method. But Amazon still holds a sizable advantage.
Based on revenue, Target was the third-largest discount retailer in the world in 2020 with $78 billion in sales. Through its 1,868 locations spread across North America, the retailer sells merchandise like clothing, consumer electronics, and other goods.
Target
Target saw a 21% year-over-year revenue growth in the third quarter of 2020, largely due to increased digital sales. Target saw a 155% rise in digital sales, which is still less than the 242% increase at Best Buy. Compared to Best Buy, whose digital-driven services climbed by 41%, its growth was 200%.
In 2020, Target seized market share from rivals valued at $6 billion. It is one of Best Buy’s top three competitors.
Costco
Costco is a members-only wholesaler that provides a lot of goods via its 803 warehouses and online shopping platforms. Costco’s annual revenue increased from $149.35 billion in 2019 to $163.22 billion in 2020, a 9.3% increase.
Additionally, the number of people with membership cards rose from 86.7 million in 2016 to 107.1 million in 2020. Every year, about 90% of Costco customers renew their memberships. Costco, like Best Buy, has a strong omnichannel approach that incorporates warehouses and online shopping.
Alibaba
Chinese e-commerce behemoth Alibaba operates on a worldwide scale through its website. Alibaba’s global business-to-business division has expanded into more than 200 countries.
They began accepting American vendors in July 2019 and are now squarely in competition with Best Buy. The international wholesale division of Alibaba generated $1.4 billion in revenue in FY2020, which ended on March 31, an increase of 17% over the previous year.
With more than 10 million enterprises utilizing the site to buy and sell items, the US is the market where Alibaba is developing the fastest. A lot of consumer gadgets are available on Alibaba, which rivals Best Buy’s selection and poses a challenge to its market dominance.
Conclusion
Amazon, Walmart, Target, and Costco are the top Best Buy competitors because they have a wide selection of affordable consumer goods and appliances.
Additionally, e-commerce sites like Amazon, eBay, Alibaba, Newegg, and Overstock have grown to be major participants in the electronics industry and are in direct competition with Best Buy.
Additionally, businesses like MediaMarkt and AliExpress compete with retailers like Best Buy and have positioned themselves as global e-commerce behemoths for a variety of goods.
Although they continue to compete with Best Buy, some stores, like Sears and GameStop, are declining quickly. As a result, the level of competition is much lower than it was ten years ago.
Frequently Asked Questions
Is Best Buy the biggest retailer of electronics?
Best Buy is the biggest retailer of consumer electronics in the world, serving customers who visit its websites and physical shops more than 1.5 billion times annually in the US, Canada, China, and Mexico with information, assistance, and convenience.
What sets Best Buy apart from its rivals?
Best Buy uses a variety of strategies to take on its rivals, including extending stores in a number of new US markets, employing technology to cut costs, and improving customer experience. It includes a plan for differentiating itself by providing commodities that are economical.
