Best Buy is bolstering its inventories ahead of the holiday season, according to a recent report from CNBC. The company plans to hire more than 1,000 workers and has already hired 150 people in November.
The best buy 2021 restructure is a move that Best Buy has made to bolster their inventories ahead of the holidays.
Best Buy claims to have solved supply-chain issues and that their Christmas restocking is on schedule.
Anthony Behar/Sipa USA/Reuters photo
Lydia O’Neal (Lydia O’Neal)
Updated at 3:14 p.m. on August 24, 2021 ET
Despite supply-chain interruptions that have hampered the retail sector’s inventory replenishment efforts, Best Buy officials believe the electronics store has adequate inventory to meet Christmas sales demand this year.
Best Buy’s merchandise inventories, which totaled $6.4 billion at the end of the fiscal quarter ended July 31, were 55 percent greater than a year ago and 23 percent more than two years ago, according to quarterly results released Tuesday. Executives said the store had pushed forward orders for products earlier than usual and increased transportation buying to replenish stocks depleted by pandemic-related interruptions over the last year.
During a Tuesday earnings call, Chief Financial Officer Matthew Bilunas said that the company is “quite optimistic” that it will have enough inventory to meet and sustain customer demand.
Mr. Bilunas said, “We are in a very good inventory position.”
During the epidemic, retailers battled to keep inventory levels up to match soaring customer demand, and merchants continue to suffer stock shortages as raw materials shortages among suppliers and chronic delays at ports and other shipping operations have clogged supply chains.
According to statistics from the US Census Bureau, the ratio of merchants’ inventory levels to sales fell to a record low of 1.07 in April this year, then leveled out at 1.08 in May and June, compared to 1.47 in April 2019.
Subscribe to our newsletter
Report on Logistics
Top news and in-depth analysis on everything from supply chain to transportation and technology in the field of logistics.
Semiconductor shortages that have hampered car manufacturing have now spread to the electronics industry, which is critical to Best Buy’s success. Executives claim that although the selection of products offered at shops has been modified when necessary, shelves and distribution facilities remain adequately supplied.
On the results conference, Chief Executive Corie Barry stated, “There will continue to be difficulties, especially as it pertains to crowded ports and transportation delays.” “However, as we go into the second part of the year, our teams have put us up for as strong an inventory position as possible.”
Best Buy recorded a net income of $734 million for the quarter, up from $432 million the year before, on sales of $11.85 billion, up 19.6 percent year over year.
The firm increased its comparable sales growth forecast for the entire fiscal year to 9 percent to 11 percent over last year, up from a previous forecast of 3 percent to 6 percent year-over-year growth.
Lydia O’Neal can be reached at [email protected]
Dow Jones & Company, Inc. All Rights Reserved. Copyright 2021 Dow Jones & Company, Inc. 87990cbe856818d5eddac44c7b1cdeb8
‘Best Buy Confident on Holiday Inventory’ appeared in the print version of the August 25, 2021, issue.
Best Buy is bolstering their inventories ahead of the holidays. They are doing this by hiring more employees and making some changes to their inventory management system. Reference: best buy layoffs 2021 reddit.
- best buy layoffs 2020
- best buy outlet
- best buy in trouble
- retail layoffs 2021
- best buy corie