Economic conditions have always had a large impact on consumer electronics retail sales, namely due to consumer demand. Many of the items that Best Buy sells are considered luxury items; home audio/video, car audio, computers, home theater, video gaming systems, etc. As the economy goes up, or improves, consumers are bringing home more in wages or are feeling more freedom to indulge themselves, thusly the demand for ‘luxuries’ go up.
Although luxury item sales are Best Buy’s bread and butter, they can also be their downfall. One of the company’s items of focus is to maintain retail presence with an increased emphasis of online retail sales. Also, Best Buy is looking at downsizing their brick and mortar stores to a smaller footprint, such as