Dallas, Texas 03/07/2014 (FINANCIALSTRENDS) – Best Buy Co., Inc. (NYSE:BBY) an electronic gaint reported 3% decline in the revenue with $14.47 billion in Q4 fiscal 2014. The comparable store sales also saw a decline by 1.2%. The company’s sales during the quarter suffered primarily due to decline in retail traffic, fewer holiday and severe weather. The company also witnessed customers shifting to the online channel in large numbers. Domestic revenue decreased by 1.8% during the quarter. Though there was a substantial growth in computing, appliances and gaming categories there was also decline in other categories such as digital imaging, movies and home theater.
In the international side, due to store closures in China and Canada, the International revenue saw a dip by 9.6%. Adverse currency effects impacted the revenue. The other notable factor impacting the revenue was declining industry trends in Canada and Mexico which eventually contributed to the significant drop in these markets.
Best Buy Co., Inc. (NYSE:BBY) Online Sale Transactions Increases Significantly
Though the Store sales witnessed a dip, the online sales saw a significant growth of 25.8%, as compared to 15.1% growth in the previous quarter. Best Buy also witnessed customers moving in large numbers towards online for making purchases. The customer satisfaction among online customer transactions saw an increase in 300 points. However, the company stated this progress came with a price as the online sales have higher mix of low range margin products. Looking at this trend the company is focusing enhance its e-commerce channel.
Best Buy Renew Blue program Produces Results
Best Buy confirmed it as eliminated approximately $150 million in SG&A costs and reduced approximately around 400 employee head count as part of Renew Blue program. This initial reduction is the outcome of company’s enhanced focus on the core business, elimination operation inefficiencies and removing management layers.
According to Best Buys CEO, Renew Blue program will facilitate to remove around $725 million in costs in the long term and $150 million reduction was the initial phase of this initiative.