Report: Amazon and Walmart Take Bites Out of Best Buy

Ever since Circuit City closed in early 2009, electronics retailers have been trying to nibble at its market share. All that biting has taken a toll on U.S. No. 1 electronics retailer Best Buy, according to a survey by Retrevo.

Best Buy announced solid performance for the fiscal month of December ended January 2, 2010 — 13 percent overall growth and 8.2 percent comparable store sales increase. Retrevo’s survey, however, shows a shift in consumer perception that threatens to shrink Best Buy’s market share.

The beneficiaries appear to be Amazon and Walmart.

Amazon Grows Electronics Brand

Retrevo asked consumers which retailer — Best Buy, Amazon or Walmart — comes to mind first when it came to buying electronics during the 2009 holiday season. Best Buy leads with 40 percent, but that’s down 4 percent from the previous year.

Meanwhile, Amazon grew 4 percent and edged out Walmart, which dropped a percentage point. Walmart’s drop comes despite an aggressive effort to ramp up its electronics reputation during 2009.


When you think about buying electronics, who comes to mind first?

Walmart Still Considered Cheapest

Best Buy has hinted that it needs to establish itself as a specialty retailer to avoid battling Walmart directly on prices. It may be on to something, since only 25 percent of respondents say Best Buy had the lowest prices on electronics during the 2009 holiday season.

Walmart led the pack with 42 percent.


Who, among these resellers, did you think had the lowest prices on electronics this holiday season?

Best Buy’s Selection Deemed Best

Of the respondents’ three choices — Best Buy, Walmart and Amazon — Best Buy is the only retailer that primarily sells electronics. It’s logical, therefore, that it was chosen as the one with the best electronics selection.

However, Best Buy's 44 percent barely edges Amazon’s 41 percent.

Walmart, which says it expanded its electronics selection during 2009, finished a distant third with 15 percent.


Who, among these resellers, did you think had the best selection of electronics this holiday season?

Watch Out for Walmart

It wasn’t all bad news for Walmart. Its efforts to build its electronics brand paid off, according to Retrevo’s study. Looking at where consumers said they bought electronics during the 2009 holiday season compared with the 2008 season, Walmart picked up 4 points of market share (actual products purchased) in both the under-$200 and over-$200 electronics categories.

Both Best Buy and Amazon lost share in 2009 versus 2008 holiday season.


Did you buy any consumer electronics under $200 at the following resellers?


Did you buy any consumer electronics over $200 at the following resellers?