"There's a lot of rhetoric around a particular company [that's] going to kill everyone," Hubert Joly, Best Buy CEO, chairman and president, said at the company's investor day on Tuesday, Sept. 19.
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Joly avoided using the word Amazon altogether, but he was clearly talking about the e-commerce titan. He saidthat combined Best Buy and the e-retailer dominate less than 20% of the electronics retail market and "both are getting market share."
That leaves 75% of the total market share for "these two competitors [Best Buy and Amazon]" to grab, added Joly.
As Best Buy increasingly builds out its tech services, through the launch of Total Tech Support, for example, Joly said there is even "opportunity to partner with Apple and Amazon." Total Tech Support is now offered in 200 U.S. stores and allows customers to bring any product to Best Buy's Geek Squad, no matter when or where they bought it.
In July, Recode reported that Amazon began quietly posting job notices and hiring IT professionals for its own in-home electronics repair army to rival Best Buy's Geek Squad.
Earlier on Tuesday, Best Buy posted a disappointing sales guidance of a 1.5% compound annual growth rate for 2021 from 2017, causing its stock to plunge. On a media call, Joly said as competition intensifies, Best Buy prefers to stay cautious about its sales expectations.
To combat expanding competition, Best Buy set up a 2020 growth plan, "Building the New Blue." Under it, Best Buy is focusing on its smart-home services through a partnership with Vivint Inc. and improving its Geek Squad, for example, by hiring 1,500 employees to solely assist people in installing and growing their connected homes.
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Editors' pick: Originally published Sept. 20.