Ruling the Metaverse

Or will it be one of the current big IT players?

Will BestBuy Rule the MetaVerse?

 Matthew Stern in Retailwire

With more people than ever talking about an impending virtual reality revolution and speculating about an eventual consumer move to a shared VR metaverse, some say Best Buy is primed to emerge as the go-to retailer for the hardware that people need to get plugged in.

Brokerage and advisory firm Loop Capital Markets takes the stance that Best Buy is positioned to leverage emerging enthusiasm for non-fungible tokens (NFTs) and virtual gaming/socializing, according to CNBC. In Loop’s approximation, the chain possesses advantages in its physical store environment, which allows customers to try on/test out new VR technology, and in the presence of in-store experts who set up technology (with an add-on cost attached). Loop sees a financial opportunity for Best Buy in becoming an integral part of the upgrade cycle for VR technology, selling higher-end and pricier PCs, displays, VR helmets and ancillary equipment as they come to market and replace outmoded ones.

The metaverse was all over the news late last year, with Facebook  just before the holiday season renaming itself Meta to reflect an emerging VR focus. Over Christmas, the company’s Oculus app — required to operate the VR hardware of the same name — emerged as the top seller on Apple’s App Store for the first time during the holiday, according to another CNBC report.

Not all VR news has been positive. A recent Wall Street Journal article detailing rather severe VR-related injuries may give pause to those considering immersing themselves in the technology and the loss of spatial and situational awareness that comes with it.

Best Buy has actively searched for emerging trends in the tech and gadget space to stay on top of since successfully pursuing a turnaround in the mid-2010s.

Late last year the chain announced the acquisition of Current Health, a remote patient monitoring and telehealth company. The purchase marked a continuation of the retailer’s moves into healthcare IT.  Earlier, when the tech world was buzzing about the prospects of IoT technology, Best Buy launched a program called Assured Living meant to facilitate older adults aging at home with the help of customized, integrated suites of in-home wired devices.  ... '

Best Buy to Do a Virtual Store

Useful to test the concept, and build versions of it to test with consumers.  

Best Buy builds a virtual store to assist customers remotely   by Matthew Stern

Distribution centers have taken on a more important role in retail as e-commerce ordering has dramatically expanded. Best Buy is now using one of its distribution centers not just to fulfill orders, but to engage with customers virtually.

On its second-quarter conference call, Corie Barry, CEO, said the chain will be piloting a “virtual store” in a distribution center leading up to the holidays.

“We are building out a physical store in one of our distribution centers that will have merchandising and products and will be staffed by dedicated associates, including vendor-provided expert labor, but it will have no physical customers,” said Ms. Barry. “Instead, customers can interact with our experts via chat, audio, video and screen sharing depending on their preference and be able to see live demos, displays and physical products.”

She added, “We are excited about the customer use cases this provides. For example, you could be on our dot-com experience, click on a product you like and be connected via video to a Blue Shirt in the Best Buy virtual store and never leave your living room. Or you could be standing in a store, scan a barcode and be taken through your phone directly to this virtual store where an associate could answer your question.”  ... ' 

Amazon Best-Buy Coopetition

Best Buy and Amazon expand their coopetition     by George Anderson in Retailwire

Best Buy may not be an Amazon.com killer, but in recent years the consumer electronics chain has earned praise for its ability to hold its own against the e-tailing behemoth when many others have failed. That’s what makes noteworthy the announcement that the two companies are banding together in an exclusive deal that will have Best Buy selling Amazon’s Fire TV Edition smart TVs in its stores and becoming a merchant on Amazon’s site.

Amazon’s TVs will roll out in Best Buy stores this summer. The items will also be available on BestBuy.com and Amazon where they will be sold exclusively by Best Buy as a third-party merchant on Amazon’s marketplace.

Amazon CEO and founder Jeff Bezos said the deal between the two companies is possible because of the trust they have built over years working together. Best Buy has sold Amazon products in its stores and online going back to the early Kindle e-readers.

According to a Wall Street Journal report, the deal will provide Best Buy with access to Amazon’s customers for the first time while “broadening Amazon’s potential audience for products that feature its Alexa voice assistant.”

“Our goal is to enrich the lives of our customers by offering them the very best products and services, whether they come to us online, visit our stores, or invite us into their home,” said Hubert Joly, chairman and CEO of Best Buy, in a statement. ... " 

Retail Road Kill

My former P&G colleague and Microsoft exec Bob Herbold talks retail models and performance  in his blog.  No holds barred in his gutsy take.  Worth following.

Retailers: Most are Lethargic Road-Kill!

It’s amazing to see many of the major retailers simply stand by and watch their business atrophy.  On the other hand, there are a few that work hard to get out in front of the key trends/changes impacting retailers.  Best Buy is an amazing example of doing exactly that.  While facing bankruptcy in early 2013, with its stock price down to $11.80, it watched its competitors such as CompUSA, Circuit City and Radio Shack fall by the wayside.

Instead of simply standing still and getting run over, Best Buy launched a completely new business model.  Stores became not only retail outlets, but also inventory warehouses used to fill online orders from a new, robust Best Buy website.  Since orders were being filled from the nearest store to the buyer, one or two day shipping was achieved.  Best Buy also brought accountability to the store-level by measuring the performance of individual salespeople on the floor and before long, it was on the road to success.  The stock price today is in the $58/share range, almost 5X that of early 2013. .... " 

Shopping Best Buy with Alexa

The rush for voice shopping continues to expand.   The capability of the supply chain will likely make the difference.  And the penetration of the infrastructure that provides the best voice experience for the type of goods involved.

Alexa will help you order gadgets and gear from Best Buy
Shop the big box store from home with a simple voice command 
Rob LeFebvre, @roblef in Engadget.

In an odd turn for retail cooperation, Best Buy is now available on Alexa, Amazon's voice-powered digital assistant. Starting today, you can learn about and order Best Buy's Deal of the Day sales just by saying, "Alexa, talk to Best Buy." Sure, it seems odd to have a competing service on Amazon's own devices, but as the blog post from Best Buy points out, the big box store has been selling Amazon Alexa devices in a special section in about 700 of its stores earlier this year. .... "

Best Buy Banks on Smart Homes

A natural step forward, and a place to connect beyond entertainment.  Selection, design, installation, training, security ....  services come into play with devices and software.

Best Buy Banks on Smart Homes, Experiential Merchandising in Stores
By Adrianne Pasquarelli

In its quest to better connect with customers, Best Buy is focusing on connected living. At the Minneapolis-based retailer's Investor Day on Tuesday, its first in five years, executives laid out a new strategy of priorities and changes in its merchandising, training and marketing over the next three years.

Called Best Buy 2020, the plan is CEO Hubert Joly's second chapter in the growth plan he began in 2012, when he began transforming the 51-year-old retailer by zeroing in on the challenge of showrooming and opportunity in ecommerce.

Now, Joly is doubling down on smart homes, assisted living for seniors and in-home tech support. By the end of next month, the company plans to offer smart home shops and enhanced merchandising within all of its more than 1,000 stores. .... " 

Best Buy Wants to Install Smart Homes

Recall that Amazon just also announced a smart home consultation service, apparently aimed at getting their devices installed.  Probably a requirement for typical aftermarket installations of Smart Homes.  For the 'non digital native'.

Is Best Buy’s latest Geek Squad service a blueprint for niche IoT?  by Matthew Stern in Retailwire.  With discussion.

As Best Buy has worked to turn itself around, two of its biggest differentiators have been its Geek Squad service offerings and its focus on selling and supporting IoT devices. The chain’s latest move leverages both by focusing its Geek Squad resources on a very specific niche within the smart home/IoT area. Best Buy is offering smart home consultations and installations geared towards adults acting as caretakers for elderly parents.

The smart home service, called Assured Living, consists of a free assessment that allows caregivers to determine the right arrangement of in-home monitors, devices and alerts for effectively caring for the elderly people in question, the Star Tribune reported. Geek Squad employees then implement the technology. .... " 

Will start to cover these efforts on the term 'Smart Home Services' tag below.

Best Buy Partners with Amazon, Google for Smart Home

Happened into Best Buy recently, for the first time in over a year,  and saw this.  Well done. Could have used some better live help provided with the display.  Some tech help is still needed. Mapping out the customer experience by interest could take this further.   Examples might be Music, Home efficiency,  Purchasing,  Video Entertainment, Communications .....     But still impressive as done already.  I have now had Echo and GHome in place, in test since their availability.   Covered often in this blog.

Consumer electronics giant partners with Amazon, Google   by Marianne Wilson

Best Buy is looking to grab share in one of the hottest categories of the "smart" home market: voice-activated devices.

The retailer is adding Amazon Alexa and Google Home "experiences" to about 700 Best Buy stores nationwide. The new interactive displays will start arriving in stores in July, with the rollout complete by the end of the year.  In addition, there will be an enhanced online presence for the devices on Best Buy's e-commerce site.

 Located near the smart home department, the new in-store displays will feature the latest voice assistants, including Amazon Echo Show and Google Home, along with the ever-growing number of products that interact with them, such as Nest thermostats and Philips Hue lighting ... "