Best Buy Co is counting on competitive pricing, new products like the Apple iPhone 5 and more advertising to bring shoppers through the door this holiday season. The largest US consumer electronics chain is not, however, counting on any help from the economy as it tries to make this holiday season different from the last one, when misplaced bets on items like pricey 3D televisions led to disappointing sales and earnings.
Best Buy is also cutting the number of seasonal workers it will hire by almost half.
"Our plan isn't built or predicated upon a meaningful move in the economic environment," Chief Executive Brian Dunn told Reuters in an interview on Tuesday, adding he was "cautiously optimistic" about demand levels this season.
"The consumer is being really careful about where he or she is spending the dollars, and I think that will continue through the holidays," Dunn said.
The holiday season is the biggest selling period of the year for retailers, and consumer spending accounts for about 70 percent of the US economy.
To woo budget-conscious shoppers, Best Buy is promising to match any lower prices its brick-and-mortar rivals offer from November 13 through December 24, the peak of the holiday shopping season. The offer excludes the period from Thanksgiving Day on November 24 through "Cyber Monday" on November 28.
"We are mindful that people are very interested in great value," said Dunn, who expects smartphones, tablets and accessories under $100 to be big sellers during the holidays.
More than a quarter of Americans expect to spend less during the holidays this year, according to a recent survey, a sign that retailers will have to try harder to win shoppers.
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