Best Buy reported a first-quarter loss as it restructured operations, but adjusted results beat expectations. The company is working on a turnaround plan to improve results as it faces tough competition from online retailers and discounters. Here CEO Hubert Joly discusses its efforts to stay competitive with low prices.
Question: Can you talk about price competitiveness and how that relates to price matching?
Response "What we have had, really starting in the fourth quarter, is greater investment on the part of the company to strengthen its price competitiveness. That's independent from the price-match policy. Meaning we've ensured that our prices are more competitive and we've enhanced our price competitiveness in the marketplace. The cost of the price-matching policy is actually quite low for two reasons. One, our prices are actually now quite competitive. And the frequency of the price matching is actually low. What the price matching policy and tool has done, notably, is enhanced the confidence of our (staffers) as they work with the customer to understand their needs, then close the sale."