Software plunge troubles Best Buy

Retailer Best Buy has reported revenues of $8.4bn for December 2010 – a 1.6 per cent decline year-on-year.

The US market in isolation suffered a 3.2 per cent dip to $6.5bn, which was partially made up for by a 4.5 per cent jump in international revenues to $1.9bn, though Best Buy notes that the latter was mainly due to favourable exchange rates.

Like-for-like sales were down four per cent overall with US sales falling five per cent and international sales declining by 01. per cent. In the same period the year before overall sales were up 8.2 per cent, American sales climbed 9.3 per cent and international sales grew by 3.5 per cent.

Even steeper decline was seen in the entertainment software category, which in the US saw sales fell 15.4 per cent due "primarily to a decrease in gaming and continued softness in music and movies".

Consumer electronics fell 7.9 per cent, thanks mostly to poor TV sales, while appliances were up 10.9 per cent. In Europe, smartphones and online sales were given particular credit.

"December sales results were within our expected range of outcomes for the month," Best Buy CEP Brian Dunn stated. "I’d like to thank our employees for making a difference in providing outstanding customer experiences this holiday season."