Although it feels like doom and gloom in the retail industry right now, it’s far from it in the right places.
If you know where to look, you can find plenty of deals.
Shoppers are increasingly picky about where they spend their dollars — and how many of them they’re willing to part with.
They’re far less loyal to any given store or brand. Instead, they largely want to find the best possible deals and put in the least amount of effort in procuring them.
So retailers like Amazon (AMZN) and Walmart (WMT) , both of which offer rock-bottom prices on a bounty of millions of items and offer fast shipping, are poised for more success in the short term.
The exterior of an urban Best Buy.
Image source: Shutterstock
Walmart and Amazon have winning models
Walmart and Amazon are both highly successful companies because they both have a long reach.
Walmart is the king of brick-and-mortar. With at least one location within 10 miles of 90% of the American population, Walmart is many shoppers’ go-to store for everything from groceries to tech.
These many locations have also doubled as fulfillment centers, enabling Walmart to offer rapid delivery to online customers who expect service as fast as Amazon’s.
And of course Amazon reigns supreme in the American e-commerce space. Amazon Prime is the gold standard of free and fast shipping, and the retailer continues to ramp up efforts to fulfill same-day deliveries on more items every quarter.
Best Buy takes on Walmart, Amazon
Now, Best Buy is trying to get in on those winning models.
Both Amazon and Walmart offer influencer programs, which enable well-known internet personalities to curate shoppable digital storefronts.
These storefronts can be promoted on social media, for instance, and influencers with large followings can bring big numbers to their storefronts and drive sales for retailers.
Now, Best Buy is offering a similar model.
“Influencers and creators will be able to build their own branded digital storefronts on Best Buy’s website, which we expect to drive increased traffic, engagement, and sales,” Chief Executive Corrie Barry said on the early-March earnings call.
They are famous personalities on the internet and social media whose large followings often convert into sales for platforms and retailers if they agree to partnerships or promotional advertising.
Though most retailers don’t typically disclose how lucrative their influencer programs are, the creator economy is valued at about $32 billion, and Best Buy has been ambitious about its plans to open up new marketplace opportunities in 2025.
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