Best Buy (NYSE:BBY) said Thursday that it will double down on its membership program as consumers buy fewer discretionary items.
Starting June 27, the program will have three tiers, including a lower-priced option that offers perks like exclusive discounts and access to hot products, the consumer electronics retailer said. The program will also have a new name: My Best Buy memberships.
Best Buy is looking for ways to make money and drive customer loyalty as it deals with a drop in demand. Consumers are buying fewer electronics as they cope with higher prices of food and essentials, and some prioritize spending on travel, restaurants and other services. Plus, during the early years of the pandemic, many shoppers sprang for new laptops, home-theater systems and kitchen appliances — the kinds of purchases that people don’t often repeat in the near term.
The company said in March that it expects revenue to range between $43.8 billion and $45.2 billion this fiscal year. The total would represent a drop from $46.3 billion from the year-earlier period, and from $51.8 billion the year before that — but a revenue increase from before the pandemic.
Best Buy debuted its membership program, TotalTech, nationwide two years ago. The program grew to 5.8 million members by late January — adding up to nearly $1.2 billion in annual revenue. That’s up from 4.6 million members the prior year.
BBY shares gained 17 cents to $72.39.
