Best Buy says sales are rebounding as stores reopen

Best Buy said Tuesday that it recovered about half of its laid-off employees as sales rebounded.

The retailer said in a press release that its second-quarter sales increased approximately 2.5% through July 18, compared to the same period last year. That includes sales growth of 2% in the United States and about 8% internationally, the company said.

Online sales have increased 255%, compared to a year ago. He said customer purchases of more computers, appliances and tablets are driving those sales.

“Strong consumer demand, combined with shopping experiences that emphasize safety and convenience, has helped produce our sales results to date,” Best Buy CEO Corie Barry said in a press release. “None of this would be possible without the effort and energy of our front-line employees working in stores, supply chain facilities, and customer homes.”

Best Buy shares rose nearly 5% on the news.

The company is also changing the way it pays employees. Instead of using an incentive compensation model, all hourly employees will get a 4% increase. The Best Buy down payment will be $ 15 per hour, effective August 2.

A company spokesperson did not say the previous starting salary for workers or how many would receive a raise due to the policy change, but said it would make the payment more predictable for employees.

Best Buy saw strong demand in the first weeks of the pandemic, as customers bought kitchen appliances, computer monitors, and laptops to help them cook, learn, and work from home. Stores switched to a sidewalk-only model, even though the retailer was considered an essential retailer.

However, in mid-April, Best Buy said the company laid off about 51,000 employees per hour and cut executive pay. In mid-June, he started bringing those employees back, and now half have returned.

Best Buy said Tuesday it will cover the cost of health benefits through September 5 for employees who are enrolled in a health plan but remain suspended.