It’s finally some good news for leading retail store chains including Best Buy Co Inc (NYSE:BBY) as retail spending is back on the growth track. The electronics department is one of the major spending zones of customers with gadgets from Apple Inc. (NASDAQ:AAPL) and GoPro Inc (NASDAQ:GPRO) bagging maximum attention.
As per the latest retail figures from the Commerce Department, retail sales registered an increase of 0.7% with substantial improvement in every single category. One of the major reasons driving more customers to the stores is the low fuel prices and according to Jonathan Lucas, CIT Commercial Services, low fuel prices give consumers the liberty to spend more. The lowering temperature has helped fuel apparel sales benefitting clothing brands.
In the electronics department, Apple Inc (NASDAQ:AAPL)’s iPhone 6 and GoPro Inc (NASDAQ:GPRO)’s action camera are driving sales and they are among the most common choice for gift purchases.
Best Buy Co Inc (NYSE:BBY) has struggled throughout the year to bring in more customers and its share prices have declined 8.15% year-to-date. However, the retail store chain is taking the challenge seriously with aggressive online promotions. Best Buy is offering free shipping on majority of the products to compete against other leading chains and its two-day shipping promotion is likely to continue until the end of the year.
It’s not just Best Buy Co Inc (NYSE:BBY) but other retailers including Target Corporation (NYSE:TGT) that are bringing in similar offers. Target is offering free shipping without any minimum shopping requirements unlike Amazon.com, Inc. (NASDAQ:AMZN) that requires a minimum order. Wal-Mart Stores, Inc. (NYSE:WMT) joined the holiday season promotional offers earlier with its online price-matching deal allowing customers to take in maximum discounts.
There is slight concern over the profit margins with free shipping and heavy discounts but these promotions are likely to pay off with more purchases in the season.
This article has been written by Prakash Pandey.
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