Best Buy's Consumer Behavior Shift: A Call for Adaptation

Best Buy, the electronics retailer, has recently flagged an alarming shift in consumer behavior that could impact its sales and overall revenue. The company has noticed a trend towards more "deal-focused" shopping, with customers buying mainly during sales events, according to their earnings call. This change in consumer behavior could have significant implications for Best Buy's in-store sales and revenue growth.

One of the key factors driving this shift is the increase in online shopping, particularly among high-income earners and millennials. As reported by McKinsey, consumer shopping online has increased significantly across many categories, including essentials and home entertainment. This trend is expected to continue even after the COVID-19 crisis, with categories like over-the-counter medicine, groceries, and household supplies showing expected growth in online shoppers exceeding 35 percent.

To adapt to this trend, Best Buy should focus on improving its online offerings and enhancing the overall customer experience. The company should invest in its e-commerce platform, expand its delivery and installation services, and offer more exclusive online deals. This could help Best Buy capture a larger share of the market and cater to the growing demand for digital shopping.

In addition to the shift towards online shopping, consumers are also becoming more value-conscious and brand-agnostic. According to McKinsey, 36% of consumers have tried new product brands, and 25% have incorporated new private-label brands into their purchases. Gen Z and high earners are particularly prone to switching brands, indicating a need for Best Buy to diversify its product offerings and cater to these segments.

To retain its customer base and adapt to this trend, Best Buy should focus on strong availability and value. The company should ensure that its products are in stock and competitively priced. Additionally, Best Buy should emphasize hygiene transparency and offer contactless activities like curbside pickup to appeal to health-conscious consumers.

Best Buy faces a significant challenge as consumers increasingly prioritize hygiene and contactless activities. According to McKinsey, 79% of consumers intend to continue or increase their usage of contactless activities post-pandemic. This shift could impact Best Buy's sales, as consumers may be hesitant to visit physical stores or interact with products. To address these concerns, Best Buy should enhance its hygiene protocols, effectively communicate these measures to customers, and expand its contactless options.


As Best Buy navigates this alarming shift in consumer behavior, it is crucial for the company to adapt its strategies to meet the evolving needs of its customers. By focusing on digital growth, enhancing the customer experience, and catering to value-conscious consumers, Best Buy can continue to thrive in the ever-evolving retail landscape.