Best Buy is a retailer that just keeps on going.
While many other traditional retailers have fallen prey to the lower prices and buzz of online retailers, Best Buy has done two things right – causing customers to flock to it and showing strong growth.
ONE: It’s embraced the fact that it DOES have a showroom. Yeah – some people will only buy online. But there’s a lot of us who buy MOSTLY online and still do shop at a traditional retailer from time to time or folks who prefer a brick and mortar retailer for their buying needs.
TWO: There was perception that Best Buy’s prices were MORE expensive than Amazon.com and not low cost. Those perceptions were wrong and Best Buy ensured it could educate its customers about it.
The New York Times writes
“Embracing the showroom — that was brilliant,” said Anthony Chukumba, an analyst at BB&T Capital Markets, and the first analyst to upgrade Best Buy to buy, which he did in January of this year. “Customer traffic was never the problem. It was conversion. Best Buy said it would match any price. The knee-jerk reaction was that that would kill the margins. But Best Buy took out a lot of costs, and it can make back the margins on volume.”
Learn from Best Buy.
Sure you have competitors. Know YOUR strengths and weakness and know their strengths and weaknesses. Turn it all into a marketable strength that YOU can leverage.