U.S. Best Buy, due to product shortage below forecast sales for the year-end sales season

The same-store sales forecast for the fourth quarter (November-January 2022) announced on the 23rd by US consumer electronics giant Best Buy was lower than analysts’ forecasts. We expect the important year-end shopping season to be hit by a shortage of merchandise.

Best Buy said it expects same-store sales in the fourth quarter to fall 2% -1% year-on-year. Refinitiv’s IBES data is expected to grow 0.1%, with the median best-buy outlook below that.

Best Buy’s stock price rose nearly 40% earlier this year, but fell sharply by 15% on the 23rd.

Retailers are under pressure to secure inventories for the holiday season. This is because transportation stagnation, the closure of factories in Asia, and the shortage of raw materials are hindering the global supply chain.

Due to the shortage of semiconductors for electronic devices, it is difficult to obtain some high-demand products such as Sony Group and Microsoft’s latest home video game consoles.

Some analysts have warned that the supply of Apple’s latest iPhone models could be hit by the holiday season. New models of iPhones and game consoles are very important for Best Buy because they sell in large quantities and also attract customers who purchase other products.

“It’s very difficult to get a new Apple iPhone or a new laptop,” said Neil Saunders, managing director of research firm Global Data. In theory, these products should grow in sales as vacation approaches. But inventory is still low. “

Given this supply situation, Best Buy has included a new membership program with an annual membership fee of $ 200, which started last month, to make it easier to obtain the “most difficult-to-find items” during the holiday season.

However, the profit margin declined due to the related costs of starting the program and the increase in costs for accelerating the shipment of some products. Major US retailers such as Wal-Mart and Target have similar problems.

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