Retail giant Best Buy (BBY) is expanding its digital presence by launching an online marketplace in the U.S. that doubles the number of products available on its website and app. This new platform opens the door to hundreds of brands that weren’t previously available in stores, such as Martha Stewart, Crock-Pot, and World Wide Stereo. The marketplace also features more tech products and introduces new categories like musical instruments, sports team merchandise, seasonal decor, toys, and puzzles. Unsurprisingly, according to a press release and Q&A, the goal is to bring more variety to customers.
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Indeed, Frank Bedo, Best Buy’s Chief Marketplace and eCommerce Officer, stated that the marketplace allows the company to create a complete and exciting experience for shoppers through technology. This U.S. expansion follows the company’s third-party marketplace launch in Canada and puts Best Buy among other major retailers that have launched or announced digital marketplaces. These platforms are an efficient way for retailers to offer more products without having to hold onto additional inventory or pay for extra storage.
Interestingly, customers currently can’t ship marketplace orders to stores for pickup, but they can return them at physical Best Buy locations. Nevertheless, Best Buy shares are up in today’s trading, though the stock remains down over 11% for the year. In fact, the company reported mixed first-quarter results in May and lowered its full-year outlook due to the impact of tariffs, making this marketplace move a strategic attempt to regain momentum.
Is BBY Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BBY stock based on nine Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average BBY price target of $80.11 per share implies 8.3% upside potential.
