Best Buy Feels the Squeeze as Consumers Prioritize Experiences Over Electronics
-
Best Buy CEO Corie Barry says consumers are spending more on experiences like concerts and vacations ("funflation") rather than big ticket electronics. This has hurt sales.
-
"Funflation" refers to higher demand and prices for fun experiences as people make up for lost time during the pandemic.
-
Other retailers like Target are also attributing disappointing sales to consumers prioritizing experiences over physical goods.
-
Consumers have continued spending due to savings and a strong job market, but discretionary big ticket items are being cut back first.
-
Best Buy hopes to rely on innovation and new technology to eventually bring customers back despite the current focus on experiences.