Best Buy leverages home care capabilities as a ‘long-term investment’

Like many of its retail counterparts, home care and aging services have become a key area of ​​focus for Best Buy (NYSE: BBY).

These peers include heavyweights like Amazon (Nasdaq: AMZN) and Walmart (NYSE: WMT). Together, these companies exemplify how retail has begun to take hold in healthcare, home care and services for the elderly.

Best Buy provided an update on the performance of its broader healthcare segment during its second-quarter earnings call on Tuesday.

“Our consumer health business, where we curate health and wellness products online and in our stores, is largely experiencing similar revenue trends to our core category, said Corie Barry, CEO from BestBuy.

For context, Best Buy’s domestic revenue of $9.57 billion was down 13.1% from a year ago. This is mainly explained by a drop in comparable sales of 12.7%.

“I am incredibly proud of our teams as they continue to overcome the challenges of the past few years and remain impressed with their ability to lead in a rapidly changing business environment,” Barry said.

Still, the company has seen strong growth and new listings for its active aging business, which offers health and safety solutions that help seniors in their efforts to age in place. Compared to the previous year, the turnover of this activity increased slightly.

Best Buy also sees the company’s momentum in the virtual care space as a positive.

“We are very focused on the successful implementation of major U.S. healthcare system accounts that have been won recently, including NYU Langone Health for Home Hospital and Mount Sinai Health Systems for Chronic Disease Management,” said Barry. “We are also moving forward by leveraging our Best Buy capabilities in this space. Our Geek Squad team successfully completed additional health training in Q2 and launched a new Geek Squad pilot service with Geisinger Health.

Even with this progress, Barry was quick to note that the current virtual care revenue contribution is still relatively small and it would take time before the return on investment materializes.

“[The] the healthcare industry has a longer ROI,” she said.

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