Recently, Best Buy announced that it is expanding its test of same-day delivery to 13 major metroplitan markets across the United States. While the company had started this pilot in San Francisco last year, several other cities including New York and Washington D.C. were added later. According to Best Buy, the same day delivery initiative is part of its ongoing commitment to improve the in-store and online shopping experience. While the company’s sales are struggling primarily due to declining volumes in the mobile phones segment, Best Buy is increasing its focus on e-commerce initiatives and omni-channel retailing to increase revenues. We believe growth in online sales will be a key revenue driver for the company as consumer electronics is one of the largest categories for online retailing where competitors such as Amazon are gaining market share. As Best Buy focuses on online initiatives, same day delivery will add to consumer convenience and have a positive impact on the company’s e commerce revenues.

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