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Best Buy US sales slide 13% as inflation, discounting take toll

August 30, 2022

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Best Buy’s sales and profit levels faced dual pressures in Q2. On one front, consumer spending on discretionary categories, including big-ticket electronics, has fallen in recent months in the face of steep inflation on essentials, namely food and fuel.

At the same time, discounts in the category have increased rapidly. The level of proportionality surprised management. Barry pointed to high inventory levels across the sector and at other retailers as driving price discounts. (The Best Buy chief didn’t name names, but Walmart executives, for example, have said they are working to clear inventory in electronics, among other categories.) Best Buy’s own inventory at the end of Q2 was down 6% from last year, Barry said.

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