Best Buy is not looking to increase the number of seasonal hires for the Christmas selling season like others such as Macy's and Toys "R" Us, but that doesn't mean the consumer electronics chain intends to stand pat.
The company announced it would increase its ad budget in an effort to grow sales against increased competition from Amazon, Target, Wal-Mart and others.
It also said it would open between 44 and 50 Best Buy mobile-product locations across the country before Thanksgiving. The company sees mobile as a hot spot and is launching a "Free Phone Fridays" promotion starting tomorrow. The deal features a free smart phone with a two-year activation program.
"Best Buy Mobile is a great example of our Connected World strategy in action and customers are really responding to it, both in our big box locations and in the Best Buy Mobile stand-alone stores," said Mike Vitelli, president, Best Buy, Americas, in a statement. "We are seeing huge customer demand for mobile technology right now, especially with smart phones and tablets, and we expect that to continue through the holidays and beyond."
The chain is also looking at 3D and internet-connected televisions as hot sellers this holiday season, along with tablet computers, e-readers and gaming devices such as Xbox Kinect and PlayStation Move.
Service will continue to be a key differentiator for the chain with free installation tips available through geeksquad.com or by phone.
"People are driving technology innovation for the first time in decades," said company CEO Brian Dunn in a statement. "That's why Best Buy will emphasize our distinctive assets that help make technology more accessible, and deliver the experiences that connect people to the services they need, the information they crave, the entertainment they desire and the people they love."
Discussion Questions: What is your assessment of Best Buy's holiday season game plan? Where do you think it will face its greatest competitive challenges?