Customers are waiting outside a Best Buy store in downtown Toronto, Ontario, on November 23, 2020, to take their orders online.
Geoff Robbins | AFP | Getty Images
Best Buy is testing a new annual subscription program that comes with benefits such as technical support, free shipping and extended warranties on smartphones or other purchases.
The consumer electronics retailer said Wednesday in a post on the company’s blog that the program is available at some stores in Iowa, Oklahoma and eastern Pennsylvania. Later this month, it will expand to stores in Minnesota, North Carolina and Tennessee. By the end of the month, it will be piloted in about 60 stores.
The program, called Best Buy Beta, will cost $ 199.99 per year or $ 179.99 per year for customers who have the retailer’s credit card.
Best Buy sales have risen in the past year, as consumers have bought technology to work, go to school and spend time at home during the Covid pandemic. Online sales and stores opened for at least 14 months increased by 9.7% in the most recent fiscal year, which ended on January 30, compared to the previous year. However, the increase in these sales fell sharply from 23% in the third quarter to 12.6% in the fourth quarter.
The retailer expects the growth rate to slow even further, especially after a year of unusually high sales. Chief Financial Officer Matt Bilunas said sales at the same store would range from a 2% drop to a 1% gain. He said Best Buy anticipates that more people will spend money on dining and traveling again.
With the membership program, Best Buy hopes to drive sales beyond the pandemic and earn more customer wallets. Watch the game of competitors, including Amazon and Walmart. Walmart launched its own program, Walmart +, last year, with benefits such as unlimited food delivery and fuel savings. It costs $ 98 a year. Amazon Prime has gained over 150 million paid members worldwide in the last 15 years with fast, free deliveries and a huge library of TV shows and movies. A Prime member is $ 119 per year.
The benefits of Best Buy are tailored to the technology. Customers who join the membership program receive unlimited technical assistance from Geek Squad, 24-hour concierge service, exclusive prices for members of the merchandise, and free installation of many appliances and products. They also receive two-year warranties on most purchases, including Apple products such as iPhones.
“As we aim to develop our membership programs, the goal of Best Buy Beta is to create a membership experience that customers will love and let them feel confident throughout their relationship with Best Buy,” said Allison. Peterson, director of Best Buy customers. on the company’s website.