Best Buy Can Cruise To $42 With A Little Push From Mobile Stores

by Trefis
source:blogs.forbes.com

Best Buy, which competes primarily with Wal-Mart and RadioShack after the closure of Circuit City during the recession, is the largest specialty retailer of consumer electronics in the United States. The retailer enjoys a market share of more than 22% in the U.S. consumer electronics market.

The company has seen success with its smaller Best Buy Mobile stores. Best Buy leveraged Carphone Warehouse's (CPW) experience running independent mobile phone stores to make Best Buy Mobile work in the U.S. We estimate that Best Buy Mobile's stand-alone stores account for about 6% of the $42 Trefis price estimate for Best Buy's stock.

Best Buy Mobile Stand-Alone Stores Are Growing at a Brisk Pace

Best Buy Mobile is integrated into many existing Best Buy locations and the company’s stand-alone Best Buy Mobile stores are growing at a fast pace - from a count of five in 2007 to 74 in 2009. We expect this store count figure to cross 200 by the end of the Trefis forecast period.