MINNEAPOLIS — Best Buy says that weaker than expected traffic until the week before Christmas and low demand in Canada and Europe put a crimp in its December sales.
The largest U.S. electronics retailer said Friday that revenue in stores open at least two years fell 1.2 percent. The measure is considered a key gauge of a retailer’s financial health because it excludes stores that open or close during the year. That’s an improvement from a 4 percent drop in the same period last year.
Still, Best Buy reaffirmed its annual guidance. December is a crucial month for retailers because the holiday period can account for up to 40 percent of annual sales. Best Buy is opening smaller stores and beefing up its online presence as it faces tough competition from discounters and online retailers.
Citi Investment research analyst Kate McShane said results likely improved during the second half of the month as “it appeared the company tried to be more competitive on price and shoppers delayed purchases until the last moment.” The Associated Press
