When it comes to making a consumer electronics purchase, unless you're in the market for an Apple-specific thing and you go to the Apple store to get, you're likely going to Best Buy (BBY) .
While it's technically been around since 1966 under the name Sound of Music, Best Buy didn't get the name we all know it as now until 1983 when it opened in Burnsville, Minnesota.
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After the store made $28 million in its first year – an enormous amount of money for 1983 – founder Dick Schulze said he knew the strategy he had in mind was going to work.
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Schulze also mentioned that one of his first key learnings was staying focused on the customer, which is something the chain continues to do today.
However, much like other businesses in the retail space, Best Buy is forced to face new headwinds due to constantly shifting information about tariffs.
CEO Corrie Barry said in the company's Q1 2025 earnings call that “China remains the number one source for products we sell” – but also that Best Buy has “already made the related price and promotional adjustments to our assortment” as of mid-May, so the price you see in stores will not be making major leaps anytime soon.
That said, Best Buy is planning some big changes that will improve the shopper experience, and if you're a regular shopper there, you'll want to keep an eye out for them.
An easier, better shopping experience
Best Buy mentioned something new coming during the conference call: a search system on its website and app that will be much easier to use thanks to – you guessed it – AI.
“This new experience will have AI-powered prompts to guide customers to more specific searches and natural conversational filtering for easier product discovery,” Barry said. “It will also have fewer, higher-quality matches that reflect customer intent and richer product information to support confident buying decisions.”
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Best Buy says it expects to roll out the new version of search later this year.
The company also mentioned it would make more in-store improvements in Q2, mentioning expansions to its tablet and virtual reality departments as well as what it calls “enhancing experiences” for the launch of the Nintendo Switch 2.
Nintendo is about to make Best Buy's week
Speaking of that, Best Buy will have its hands full this week with the launch of Nintendo's new Switch 2 video game console on June 5, which is sold out at all participating retailers as of the time of this writing.
Walmart and Target also accepted preorders for the new system, but made many customers angry when they canceled some of them, leading to extensive complaints online.
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Best Buy is having a midnight event for the launch of the system and promises to also have stock of the console for purchase, as well as 150 commemorative coins to hand out to those who attend the big release. 50 patches featuring iconic characters from Nintendo's beloved Super Mario Bros series will also be up for grabs and will be mailed to customers at a later date.
Since customers have been so disappointed with the way Walmart and Target have handled their orders of the in-demand console, Best Buy has a great chance to win them over as customers if it can deliver the goods and provide a smooth midnight release.
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