Best Buy's Getting Creative Amid Slumping Sales — But Expert Warns the Strategy Has a Major Flaw Consumers stocked up on electronics at the start of the pandemic — and they're not interested in buying more right now.

By Amanda Breen Edited by Jessica Thomas

Xinhua News Agency | Getty Images

Best Buy enjoyed a big sales boost at the beginning of the pandemic as consumers loaded up on electronics to get them through quarantine — but those days are over.

Now, the electronics retailer is revamping its membership program to include three different levels and lower-priced options on June 27, CNBC reported.

Related: Best Buy Founder Dick Schulze Didn't Attend College But He Thinks You Should

The current membership program TotalTech, which debuted two years ago and cost $199.99 per year, will become the new program's top tier My Best Buy Total; soon-to-be priced at $179.99 annually, it provides 24/7 tech support, up to two years of product protection, 20% off repairs and additional benefits.

The second tier, priced at $49.99 per year, includes members-only prices, free two-day shipping with no minimum purchase and an extended return policy; and the third tier, part of a free loyalty program, offers free shipping with no minimum purchase.

In March, Best Buy CEO Corie Barry said the company would close or remodel some of its larger stores and launch smaller-scale outlets selling used and refurbished electronics to entice customers on a budget, Reuters reported.

But Joe Feldman, a retail analyst for the Telsey Advisory Group, told CNBC that Best Buy's membership program has a weak spot due to the decrease in demand for new devices: "[The program] often gets associated with a purchase, so some of it is chicken and egg. It makes it a challenge."

Related: Best Buy Pivots To Address Changing Retail Landscape

The retailer declined to share a current membership total and the program's renewal rate, per the outlet.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Franchise

Taco Bell Is Teaming Up With a Major AI Firm to Speed Up Service — And Increase Accuracy

Select Taco Bell and Pizza Hut locations are testing AI technology that streamlines drive-thru orders, optimizes restaurant operations, and enhances customer experiences.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Generative AI Is Creating Power Struggles and 'Tearing Companies Apart,' According to a New Survey

More than one out of three executives surveyed said they found the adoption of generative AI at their companies to be a major disappointment.

Starting a Business

A Teen With Cerebral Palsy Pitched a Creative Product in School. He Got a B- — Then Grew the Business to $5 Million a Year Anyway.

Drew Davis, founder of Crippling Hot Sauce, uses humor and business to make a major impact.

Business News

'Done a Lot of Difficult and Significant Things': Elon Musk Says These Current and Former CEOs Are the 'Smartest'

The once icy relationship between Elon Musk and Jeff Bezos has appeared to thaw.