Best Buy takes its Totaltech membership program nationwide
At a Best Buy Orlando location, an employee brought a television for a customer.
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Best BuyTuesday’s announcement by the company was that they are launching an annual membership program in all 50 states. It also includes a perk to encourage people to join: access to rare items for holiday shopping.
Totaltech’s consumer electronics retailer program costs $199.99 per annual. Joining the Totaltech program will provide unlimited and round-the-clock technical support and exclusive member pricing on merchandise. It also includes up to 2 years product protection on most purchases. Customers can get free shipping and installations, extended returns and exchanges and a 60-day window.
Best Buy began testing the program at select storesIn April.
This retailer is maximizing the holiday-specific benefits as the pandemic increases global supply chain challenges. Some factories and ports were temporarily closed due to Covid-19 outbreaks. causing a shortage of semiconductor chipsThey are found in every product, including laptops and cars. The rise in freight costs and congestion at ports has led to increased prices and less product on the shelves.
According to retail analysts, holiday spending is expected to rise but warned of fewer deals and shipping delaysThey are. The company encourages customers to shop early to get the best deals and buy what they want when they are available.
Best Buy does not list the most in-demand items available for Totaltech members. However, it offers popular gift items that span from consoles and computers to videogame consoles. AppleProducts. The company announced in a release that member will be able to access Member Monday. It is a special offer of exclusive deals which begins October 18 and continues through the holidays.
There will be some special deals available for members of My Best Buy, Best Buy’s membership program.
Totaltech’s launch means that Best Buy will now be available. phase out a similarly named membership programThese had less perks.
Peter Keith, a Piper Sandler retail analyst called the upcoming launch of Totaltech “a potential game-changer”In a research note, he expressed concern for the stock and company. According to him, the Best Buy membership program “is one of the most fascinating initiatives” in the past five years. It also comes in a moment when the shares of the company are at an affordable valuation, said he.
Best Buy shares were closed Monday at $105.49. This year, shares have risen by 6%.
Piper Sandler rates Best Buy overweight. She has $150 as a price target. This is 40% less than what it currently trades.
Keith calculated in his research note that Best Buy would add three million members to its existing membership base, which already includes the roughly 3 million people who have been part of the program’s phase-out. According to Keith, the retailer will increase its membership to 6 to 10 million in time.
He stated that interest will increase in the holiday season because Best Buy has advertised the program and customers can get members-only prices on its website.