Customer returns add up to about 10% of Best Buy’s revenue and lead to $400 million a year in losses. So the consumer electronics retailer is taking new steps to minimize the impact of those returned products by reselling them in-store and online. As part of Best Buy’s efforts to optimize its retail floor space, it is setting aside an area in stores to sell open-box, blemished and refurbished products, Best Buy (BBY) CEO Hubert Joly told Wall Street analysts Tuesday. “In the third quarter, we took our first step to reduce these losses by clearing space in our stores to more effectively showcase clearance and open-box inventory,” Joly said on the company’s earnings conference call. “In the first quarter, we plan to begin adding initial quantities of returned and open-box inventory to our online assortment.” Today “immaterial amounts” of the returned inventory are available online, Joly said. “By the …
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Best Buy looking to cut losses from product returns