Best Buy’s 2016 online sales totaled $4.85 billion, up nearly 21%.
Best Buy Co. Inc.’s online sales grew at a faster clip than the U.S. e-retail industry average in 2016, and they outperformed online leaders Amazon.com Inc. and Wal-Mart Stores Inc.
Best Buy’s web sales grew 20.8% for the fiscal year ended Jan. 28 and totaled $4.85 billion. The average growth in U.S. e-retail was 15.6%, per estimates released by the U.S. Commerce Department last month, while Amazon’s product sales clocked 19.4% growth and Wal-Mart’s e-commerce sales grew 15.5% globally.
Best Buy, No. 12 in the Internet Retailer 2016 Top 500 Guide, says it generated $2.3 billion online in the fiscal fourth quarter, which for Best Buy encompasses November, December and January. That’s up 17.9% from $1.95 billion a year earlier.
Best Buy needs to have a powerful Q4. Among the 30 publicly traded retailers that release their online sales performance figures, Best Buy generates the greatest percentage of its online revenue in the fourth quarter: 47.4% in the most recent Q4 and 48.6% for the November 2015-January 2016 period. In comparison, Amazon’s Q4 product revenue accounted for 32.4% of total product revenue for the year. Amazon is No. 1 in the Top 500; Wal-Mart is No. 4.
While online sales grew for Best Buy, total domestic revenue fell 1.4% in Q4 and was flat for the full year. Web sales accounted for 18.6% of Q4 domestic revenue and 13.4% of total domestic revenue for the year. A year ago, web sales accounted for 15.6% in Q4, and 11.0% for the full year.
“Our strong bottom-line performance in the fourth quarter was driven by a disciplined promotional strategy, continued optimization of merchandise margins and strong expense management,” says Hubert Joly, CEO of Best Buy.