The electronics retailer's veteran executive, Jason Bonfig, will assume the role.
Corie Barry, the Chief Executive Officer of Best Buy, will step down at the end of October, with Jason Bonfig succeeding her. Barry's departure comes after a period of prolonged weak sales growth at the electronics retailer, which has weighed on the company's stock performance.
The company announced on Wednesday that Barry, 51, will resign from her positions as CEO and board member at the end of October. Jason Bonfig, currently the company's Chief Customer, Product & Fulfillment Officer and a long-serving executive at Best Buy, will take over the leadership role.
Bonfig, 49, joined the retailer in 1999 as an inventory analyst and has since held a series of merchandising positions. He will join the company's board upon assuming the CEO role later this year. The company stated that Barry will serve as an advisor for a six-month term following her departure.
When Barry took over in 2019, the electronics retailer had already turned its operations around, avoiding the fate of other retailers like the bankrupt Circuit City and Sports Authority that failed to withstand competition from Amazon. The following year, the board received an anonymous letter alleging a personal relationship between Barry and another executive, leading to an investigation. The board ultimately decided she would remain in her position, and the findings of the investigation were not disclosed at the time.
During the pandemic, Best Buy's sales surged as demand for laptops and home entertainment equipment increased with more people working and studying from home. When this demand subsided rapidly, the company managed to avoid the inventory glut that plagued some of its retail competitors.
However, in recent years, the company's sales performance has been weak. Best Buy has implemented multiple rounds of layoffs and workforce restructuring at its stores while pushing forward with store upgrades, expanding online sales, and seeking growth through non-core businesses like advertising.
In Wednesday's announcement, the company stated that Barry "skillfully guided the company through numerous external challenges."
During Barry's tenure, the company's stock price increased by 6.25%, while the S&P 500 index gained 157% over the same period. Over the past 12 months, Best Buy's stock has risen by 7.2%.
Earlier this month, analysts at Goldman Sachs recommended selling Best Buy stock, citing in part the risk of rising electronics prices due to increased demand and costs for memory chips, driven by technologies like artificial intelligence. Products like laptops use these memory chips.
The company did not comment on this downgrade. Last month, Barry stated that Best Buy is aware of the challenges posed by rising demand for memory components and is "working with suppliers to mitigate the impact on the business." This includes accelerating inventory intake and providing suppliers with longer-term sales forecasts.
The incoming CEO, Bonfig, currently oversees some of the company's growth initiatives, such as e-commerce and advertising businesses. Barry noted during the last quarterly earnings call that the number of advertising partners at Best Buy doubled in the most recent full fiscal year compared to the previous year.
The company forecasts that full-year comparable sales - revenue from stores open at least a year and online channels - will change in a range from a 1% decline to a 1% increase. Total revenue is projected to be between $41.2 billion and $42.1 billion, representing a slight increase compared to last year.
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