Best Buy Expands Into Home Theater Installation
According to an article at MarketWatch , Best Buy Co. is ramping up its home theater installation for 2007.
Best Buy is attempting to set itself apart from budget retailers like Wal-mart by focusing on flat panel TVs, video gaming, Geek Squad Services and - most notably - the addition of more service capabilities that will tie into the home theater market.
"Our investment in our service capabilities continues to drive better customer experiences and future growth opportunities," Brad Anderson, Best Buy chief executive said during an earnings conference call.
After growing its technical support business, known as the "Geek Squad", the No. 1 U.S. home electronics retailer on Thursday said it would hire 1,000 new home theater installers, on top of the 1,500 it already employs.
While it expects strong revenue growth in both Geek Squad services and home theater installation, hiring plans for Geek Squad are "nominal" the company said. Instead, Best Buy expects revenue gain to be driven by productivity improvements. It hopes to drive the improvements for the installation of new tools, the benefits of scale, and "a market based approach to delivering in-home service."
"We're investing in the home theater installation capabilities in advance of the demand curve as we did last year with Geek Squad because we view this as a critical strategic capability," Best Buy President Brian Dunn said.
This is not a new concept. Another large retailer using services to lure and keep customers is Home Depot Inc. The home-improvement retailer said the "Do-it-for-Me" category is a significant source of new growth, particularly for the Baby Boomer population.
For the original article, please visit www.MarketWatch.com .