Best Buy (NYSE:BBY) was struggling for survival after many investors and analysts put the company on the “death watch” list because consumers were turning to online retailers like Amazon (NASDAQ:AMZN).
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But four years ago, Hubert Joly joined the company as its CEO and managed to orchestrate one of the strongest corporate turnarounds in recent history.
In an exclusive interview with FOX Business Network’s Lauren Simonetti, Joly said he was able to boost the company’s stock price more than 330% by focusing on the store’s customers and improving its e-commerce operations.
“We turned the company around and the way we did it was by refocusing on the customer. First, we took prices off the table. Prices are our competitors. We slashed internet prices and then we invested in the customer experience,” Joly said.
Best Buy had long been stymied by a practice called “showrooming” – where shoppers would examine the merchandise at the store and then buy it from an online competitor.
The company improved its showroom experience and placed its best-selling products such as Apple (NASDAQ:APPL) to the front of its stores.
“Apple products are great products. Our customers love it and we have the assortment and expertise to help the customers,” he said.
Best Buy’s new strategy is bringing customers back to its retail stores and has improved its online business by having half of its online orders picked up at the store or shipped from a store.
“The last two quarters, online business grew 24 percent so we are gaining market share as a whole – online and at the store,” Jolly said.
Amazon is selling the new Nintendo system, the NES Classic, to prime customers with a guaranteed two-hour delivery. When asked how he competes with that, Jolly said: “In 15 minutes, you can get the NES Classic Edition at Best Buy.”