Retailers typically don’t release sales numbers so soon after the start of the holiday shopping season, but the Star Tribune reports that indicators show that Best Buy got off to a strong start as doors were busting.
The story cited the retailer's aggressive promotions, reinvigorated video game and television categories, and a 6 p.m. Thanksgiving opening for generating strong weekend traffic that impressed Wall Street. Best Buy shares rose 53 cents to close Monday at $41.48. “We’re selling a lot of accessories,” said Scott Durchslag, Best Buy’’s president of e-commerce. “We’re encouraging shoppers not to just buy the smartphone but also to personalize it with a case. These things are really doing well for us.”
CNBC heard from analysts expressing optimism about the strength of the Richfield-based retailer.
"I think they're going to be the biggest winner this holiday season," said JPMorgan analyst Chris Horvers, and UBS analyst Michael Lasser agreed that the retailer will have a "great holiday." Lasser wrote he expects the company will continue to grow its online sales at a double-digit rate.
"They've made it much more economically compelling to shop at Best Buy," Lasser said.
The story said one of the trends that's helping Best Buy is the age of the average television. Flat-screens first saw strong sales between 2004 and 2006, and since they last about nine years, a large number of early adapters should soon be looking to replace them.
Best Buy has recently returned to profitability after months of store closings and disappointing sales.