Aug 4, 2020 - Economy

Best Buy continues to defy the retail apocalypse

Data: FactSet; Chart: Axios Visuals
Data: FactSet; Chart: Axios Visuals

One company bucking the woeful news from the world of retail is Best Buy, which saw its stock price hit a record high Monday.

What's happening: Last week Best Buy announced that sales have increased from last year despite the coronavirus pandemic. It also has promised permanent wage increases for employees.

  • The retail chain said that sales in the second quarter rose 2.5% from the same period in 2019, and have risen 15% since stores began reopening June 15, per MarketWatch.

Between the lines: Best Buy managed to hang onto its sales numbers through appointment-only visits that held visit rates at around 40% of normal levels in the early stages of the recovery, notes foot traffic analysis firm Placer.ai.

  • Placer.ai analysts argue "the best might still be on the horizon with a critical back-to-school season dovetailing with a rise in the value and importance of the home office."
  • "Even the potential for college students to be working remotely could drive an increase in the need for at-home technologies."
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