BEST Buy is bracing for a huge transformation — and shoppers will soon see it in stores.
The retailer is shaking up how its shops look and feel, testing out very different models depending on the market.
Corie Barry, CEO of Best Buy, speaks during an interview with CNBC[/caption]
Best Buy is evolving store formats, opening smaller shops and large experiential flagships[/caption]
Sales are strong, but Best Buy remains cautious due to consumer volatility and tariffs, its boss said[/caption]
CEO Corie Barry told CNBC the electronics giant is rolling out “massively evolving” formats, with plans to open smaller-footprint stores in new markets while also investing in big, bells-and-whistles experiential shops in major cities.
“It’s evolving massively, and I love the splits that you have,” she said.
“We’re working on a smaller footprint store that maybe can augment a market like Miami or Atlanta where we’ve seen a lot of growth, or can go into a new market.
“We just opened a new store in Bozeman, Montana because it’s a format that can actually work in a smaller setting.”
At the other end of the spectrum, Best Buy is betting big on flashier, vendor-driven flagship locations designed to wow shoppers.
“We’re playing with really experiential all the bells and whistles stores in partnership with our vendors,” Barry said.
The shake-up comes as the retailer pushes into AI-powered devices, health tech, and computing upgrades — categories Barry said are fueling steady sales.
“Computing has grown for six straight quarters now,” she explained, adding that upgrades tied to AI and Windows 10 will keep demand high.
Best Buy also isn’t shying away from challenges like tariffs, with Barry insisting her team has kept costs in check by diversifying supply chains and juggling product assortments.
For customers, that means choice.
“As long as we have something for you and your budget, that is the main focus for us,” Barry said.
Beyond the store shake-up, Barry addressed Best Buy’s broader performance.
She said sales are trending toward the higher end of expectations after a strong quarter but stressed the outlook remains cautious given “a lot of volatility in the consumer.”
Gaming and computing are leading growth, while appliances and home theater have slumped — echoing trends seen at Home Depot and Lowe’s as shoppers shy away from bigger-ticket home projects.
Health tech is also still a “really important” part of the business, Barry added, pointing to the popularity of devices like the Apple Watch and Oura ring, as well as technology that supports aging at home.
“Every ounce of investment is going toward more healthcare management,” she said.
On tariffs, Barry said the “effective calculated tariff rate right now is probably about 16 per cent” but emphasized that Best Buy has kept customer impact “materially lower” through careful sourcing and assortment strategies.
The shake-up comes as the retailer pushes into AI-powered devices, health tech, and computing upgrades[/caption]