Shares of Best Buy are trading up 16 percent on Thursday after the company posted unexpected sales growth in same store locations.
Best Buy is a retail anomaly because it’s an enjoyable place to shop.
Step inside one of the company’s retail stores and it’s like walking into the Willy Wonka Chocolate Factory for gadget-geeks.
This is all by design.
Best Buy has worked with partners like Google and Samsung to establish small sections of the store where each can show off new products. Visit a Samsung area, for example, and you’ll find the latest smartphones and tablets, virtual reality headsets and accessories.
You might then walk over to Best Buy’s gaming section, which has been boosted with plenty of enthusiast accessories over the past few years, from high-end mechanical keyboards (a favorite among PC gamers) to super-accurate mice and fancy gaming headsets with surround sound audio.
Or, just walking down the aisle, you might stumble across a display of Amazon Echo units and Google Home products, each luring you into the promise of a smart home controlled by voice.
Best Buy said on its earnings call Thursday that it will continue to evaluate and optimize its store footprints, improving this sort of experience.
Best Buy’s Rewards program offers gift certificates and early exclusive sales to returning customers. It also extends the return period a loyalty customer has on some products, allowing them to test new items in their homes, like a TV, for a longer period of time before deciding if it’s worth keeping or not. Another program for gamers lets them to pay a one-time fee to partake in the “Best Buy Gamer’s Club,” which offers discounts on games and pays those members more for trade-ins.
Best Buy also appears to be riding the wireless wars to its own gains. The company said on Thursday that its first quarter sales were “better than we expected as new unlimited data plans offers from the carriers generated increased demand across devices.”
Take a look at this chart, which shows Best Buy’s gains riding right along with T-Mobile, which has been stealing customers from AT&T and Verizon by offering more aggressive pricing: