Q4 Planning

Amazon Prime? Holiday Free Shipping Begins at Best Buy

The November and December time frame is my favorite time of the year.  I love seeing all of the planning and strategy teams have put in place with retailers during the year being executed.  Innovative merchandising, gift packs, etc. help retailers compete and differentiate from each other.  

A great retailer that offers differentiation is Best Buy and they are ready to compete head on with Amazon in November and December.  The Star Tribune reported today Best Buy is offering free shipping though December 24.

During Q4 2015, Best Buy reported that the on-line / mobile category accounted for 15.6% of sales.  Expectations are for this number to be even higher in Q42016.   Best Buy's free shipping offer removes a major barrier for consumers who purchase via Amazon Prime.  Best Buy special/value packs (which have been historically showcased) will drive higher ASP's while delivering value for consumers... which in turn will drive profits.

Enjoy -

DC