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Conversion, conversion, conversion: A quick scan of the performance of some major retail...

Conversion, conversion, conversion: A quick scan of the performance of some major retail websites shows the biting criticism of Best Buy's (BBY +0.5%) online business may be well-deserved. The company only converts 31% of its visitors into a sale compared to the 81% of visitors at Amazon.com and 76% checking in at Apple's site that actually buy something. Comparing the retailer's sales per physical space to brick-and-mortar peers yield similar disappointing results: Best Buy $865 per square foot vs. Costco at $1,031 and GameStop at $1,015.
Comments (3)
  • billddrummer
    , contributor
    Comments (1738) | Send Message
     
    This is why I took a dim view of BBY crowing about how its website was one of the top 5 visited over the Black Friday weekend.

     

    Visits aren't sales, as is clearly shown here.

     

    I was actually researching some flat panel TVs but found two thirds of them out of stock at the website.

     

    You can't sell what you don't have.

     

    They apparently learned their lesson from last year, when they did sell things they didn't have--and had to disappoint customers at Christmas time.
    7 Jan 2013, 09:04 PM Reply Like
  • Jan Rogers Kniffen
    , contributor
    Comments (52) | Send Message
     
    While the author makes some good points here, comparing the sales per square foot at BBY to Costco and GameStop seems totally unfair to me. Costco does huge volumes in bulk food products and in sales to businesses who use Costco as a supplier. By contrast the typical GameStop would not make a good sized closet in a Best Buy store. On the other hand, had the author picked Walmart or Target, or almost any other big box retailer for a sales per square foot comparison to BBY, BBY would have looked darned good.
    8 Jan 2013, 05:39 AM Reply Like
  • billddrummer
    , contributor
    Comments (1738) | Send Message
     
    What is AAPL's sales/sf?

     

    Oh, found it--$6,050/sf, twice that of Tiffany's

     

    http://bit.ly/13flXwF

     

    That takes specialty retail to another galaxy.

     

    And oh by the way, does AAPL qualify as a BBY peer?
    8 Jan 2013, 08:05 PM Reply Like
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