A shopper moves a purchase at a Best Buy store in Corpus Christi, Texas.
Eddie Seal | Bloomberg | Getty Images
Best Buy declared Tuesday that it’s brought back about half of its furloughed employees as sales rebound.
The retailer said in a bulletin release its second-quarter sales are up about 2.5% through July 18, compared with the same period a year previous to. That includes sales growth of 2% in the U.S. and about 8% internationally, the company said.
Online sales take jumped by 255% so far in the second quarter, compared with a year ago. It said customers’ purchases of computers, appliances and plaques are driving those sales.
“Strong consumer demand, combined with shopping experiences that emphasize safe keeping and convenience, has helped produce our sales results to date,” Best Buy CEO Corie Barry said in a news release. “No person of this would be possible without the effort and energy of our front-line employees working in stores, supply chain powder-rooms and customers’ homes.”
Best Buy shares jumped about 4% on the news in extended trading.
The company is also coppering the way it pays employees. During the pandemic, it has paid incentives to employees. The appreciation pay began March 22 and ends Aug. 1. Starting Aug. 2, all hourly wage-earners will get a 4% raise and the company’s starting pay will be $15 an hour.
A company spokesman would not disclose its until starting wage or how many workers would get a raise because of the policy change, but he said it would make pay assorted predictable for employees.
Other retailers have raised employees’ wages during the pandemic, too, with bonuses or pay aids. Target recently raised its minimum wage to $15 an hour as part of a multiyear effort to boost employee pay. The exchange, which began July 5, effectively gave a raise to about 275,000 of its more than 350,000 workers. Earlier today, Walmart announced it will give hourly employees a third round of bonuses during the pandemic and a day off by painstaking on Thanksgiving.
Best Buy saw strong demand in the early weeks of the pandemic as customers bought kitchen appliances, computer scans and laptops to help them cook, learn and work from home. Stores switched to a curbside-pickup-only model, flush though Best Buy was deemed an essential retailer.
In mid-April, however, Best Buy said the company laid off about 51,000 hourly staff members, including nearly all of its part-time workers, and cut executive pay. About 82% of full-time store and field employees, such as Geek Group agents, stayed on the payroll.
Starting in May — at the start of the second quarter — Best Buy began letting customers return to holds, but by appointment only. In mid-June, it began bringing back about half of its furloughed employees and allowing customers to walk into count ons without an appointment at more than 800 stores.
As company stores have been open again from June 15 to July 18, in stocks have grown by about 15% and online sales rose by 185% compared with the same period a year previously to.
Nearly all of the company’s 1,000 stores reopened to shopping as of June 22.
Best Buy said Tuesday that it will wrap the cost of health benefits through Sept. 5 for employees who are enrolled in a health plan but remain furloughed.