Best Buy tries to rebound by selling luggage, grills

Best Buy and other platforms expand online assortment

Best Buy said Tuesday that shoppers can now find Tumi suitcases, Weber grills and other outdoor items, from patio furniture to heaters, on its website and in select stores , along with its usual selection of laptops, video game consoles and other gadgets. Some of the products are targeted at tech purchases, such as laptop bags and Tumi's new e-sports line for carrying gaming gear.

With this move, Best Buy joins other retailers entering new categories and expanding online assortments to attract more consumers' attention and money. Lowe's has also added adjacent products, such as outdoor toys like trampolines, small appliances like air fryers and fitness equipment. Other retailers, such as Walmart and Target, have used third-party marketplaces as a way to increase e-commerce sales and promote new categories or brands.

Best Buy's online sales in the U.S. grew 144.4% in 2020 as Americans bought computer monitors, tablets, kitchen appliances and other tools to work, learn and cook from home. The company got a boost from stimulus spending in the first quarter and raised its forecast for the first half of the year. However, Chief Financial Officer Matt Bilunas said demand could taper off later in the year as consumers spend in other areas such as travel.

Best Buy's online sales grew 7.6% in the first quarter of 2021

Its online sales growth in the U.S. slowed to 7.6% in the fiscal first quarter compared with the same period last year, reflecting the difficult year-over-year comparisons that retailers face in the coming months.

In luggage and home-related goods, Best Buy is betting that the newly reopened economy and a strong housing market can drive sales. Chief Executive Officer Corie Barry said last month that rising home prices prompted customers to buy big-screen TVs in the first quarter and hire the company to install technology around their houses.

"Even as we've seen increased demand throughout the pandemic, we believe the nesting phenomenon will continue to drive demand for products and services that help customers improve their home experience," she said on the company's first-quarter earnings call .

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