Shares of Best Buy are rapidly approaching their all-time high of $56.66 (reached on April 1, 2006). Fueling the momentum is a recent analyst report suggesting that the No. 1 CE chain stands to gain an estimated $400 million in added revenue from the collapse of hhgregg, which shares a similar big-box format.
“The benefit for Best Buy, if one exists, comes if the company can capture a significant share of hhgregg’s roughly $2 billion in annual sales. Most of those sales (about 60%) came from appliances, an area that currently contributes about 9% of Best Buy’s annual sales.”