Best Buy delivers bad news to customers after major retailers shut down amid ‘retail apocalypse’
A pullback by CONSUMERS led to lower sales at several retailers amid a supposed ‘retail apocalypse’.
Best Buy that they expected sales to fall this year following low tech purchases in 2022 due to inflation and other economic issues.
In a conference call, Best Buy CEO Corie Barry said she expects 2023 “to be the bottom of the decline in tech demand,” adding that there has been growth sales during the pandemic after Americans installed devices in their homes.
“On average, US households now have twice as many connected devices as they did in 2019, and consumers report that more of their technology purchases are based on needs rather than wants,” she said.
Barry added that Best Buy would see the benefits of replacements as consumers tire of their first pandemic purchases.
The company said U.S. sales fell nearly 10% in the past three months due to “low spending” on products including computers, phones, home theaters and appliances.
However, there is a silver lining in the form of growth from video game and tablet products.
Rodney McMullen, chief executive of Kroger, said shoppers are looking to stretch their budgets and buy from lower-cost store brands.
“They are behaving as if they are already in a recession,” he said, adding that at the same time consumers are buying more than they have in recent months.
Customers are shifting their wallets towards travel and entertainment now that health restrictions have eased.
This caused a decline in homewares and casual wear that exploded as shoppers were locked in their homes during the pandemic.
But the inflated prices are hurting customers, who are cutting back on some purchases or switching to cheaper brands.
Walmart reported that more high-income shoppers are turning to their brands while other retailers such as TJ Maxx and Burlington are also seeing increased sales.
If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at firstname.lastname@example.org The content will be deleted within 24 hours.