A Closer Look At Best Buy’s Mobile Department Redesign

Mobile phones are a key revenue driver for Best Buy (NYSE:BBY). In addition to selling mobile phones in its stores and on its digital platform, the company also has standalone AT&T and Verizon pop-ups at several of its stores. These standalone mini-stores enable customers to gather information on subscription rates and data plans in addition to mobile phone related accessories.  In Q1 2017, the company reported better than expected revenues on the back of soaring mobile phone sales. Going forward, smartphones are likely to be a key growth driver for Best Buy, and the company is redesigning the mobile phone departments in its stores – as well as on its digital platform – to simplify the purchase process for customers. This initiative, termed as “Mobile 2020,” is inspired to an extent by fast food restaurants, as the company is aiming to make the complicated decision of a mobile phone purchase easier by integrating the options into a “menu board” to making them easier to understand and decide.

Simplifying The Mobile Phone Purchase Process

Under its “Mobile 2020” initiative, Best Buy is ensuring that its employees will help customers to navigate through the options available while buying a mobile phone, guiding them through the entire process and making it easier. The company is creating a dedicated space for prepaid and unlocked phones, which are the fastest-growing areas in the mobile phone segment in the U.S. Apart from hardware decisions, many customers find it difficult to decide between the options offered by carriers in terms of data plans, installment billing and other features, and Best Buy aims to simplify this. The company’s stores will display menu boards, which will give customers an overview of the various options available.  On its website, Best Buy will allow users to select a device and easily view prices, colors, carriers, plans and other options all in one page.

Best Buy’s key competitive edge is the presence of multiple carriers and phone brands, as well as its trained employees who help customers navigate through the products and services in order to make the right choice. Despite the general trend away from brick-and-mortar stores, we do believe that this service is extremely valuable to many customers as the decision-making process can be tedious and confusing. Best Buy’s mobile phone sales have been rising, and this initiative should fuel growth in this segment.

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