Best Buy Aims To Capitalize As Amazon Halts Pre-Orders
While Amazon.com halts preorders for certain films—using the tactic as leverage as it negotiates a contract with a vendor—Best Buy quickly jumped on its competitor’s dispute as an opportunity to capture sales.
Amazon has reportedly stopped taking preorders for some Warner Bros. movie discs, including The Lego Movie. The company has received significant media coverage for using a similar (and controversial) tactic against Hachette, a book publisher, amid contract negotiations.
Richfield-based Best Buy, in its ongoing efforts to compete with the online giant, reminded its Twitter followers on Wednesday that customers can pre-order the movies on its website.
— Best Buy News (@BBYNews) June 11, 2014
Best Buy is one of Minnesota's five largest public companies based on revenue. The company swung to a profit during its first quarter, although same-store sales, an important indicator in retail, slid 1.9 percent.
Chief Financial Officer Sharon McCollam said last month that the company expects to see continued declines in its same-store sales numbers for its second and third quarters, due to an absence of major product launches.