Best Buy to pilot new ship-from-store hub model

Best Buy is evolving the way it uses its stores for fulfillment in response to accelerating online demand.

On the chain’s quarterly conference call, president and CEO Corie Barry told analysts that, starting next month, Best Buy will pilot a ship-from-store hub model to help handle significant volume pre-holiday and year-round. (Best Buy’s second-quarter online sales increased by 254%, its biggest quarterly gain ever.)

“All our stores will still ship out online orders, but approximately 250 locations will be positioned to ship out significantly more volume,” Barry said. 

The locations in the pilot were chosen for their space, proximity to carrier partners and ability to support same- and next-day delivery.

“Over time, this should allow us to deliver a more productive fulfillment model,” Barry added.

Best Buy is also continuing to add additional third-party physical pickup locations for online orders to provide more flexibility and convenience for customers. It now has more than 16,000, covering 85% of the population within five miles.

“It is too early to know exactly how much of our sales and customer shopping activity will be via digital channels over time,” Barry said. “But as a result of the pandemic, we expect it will be higher than it has been historically.”