Best Buy acquires Yardbird outdoor furniture brand
Best Buy Continues to Expand Home Categories Beyond Electronics with Acquisition of St. Louis Park-based Yardbird, a Direct-to-Consumer Outdoor Furniture Brand Launched Just Five Years Ago years by father and son Bob and Jay Dillon.
âWe are excited about the opportunity to use our expertise in merchandising and supply chain to grow this business – both online and in physical locations across the country,â said Corie Barry, CEO of Best Buy, about Yardbird on Tuesday during the retailer’s third quarter earnings call. âBecause customers ask us to complement their solutions, we have broadened our assortment in categories such as outdoor living, as more and more consumers look to revamp or modernize their outdoor living spaces. This includes products like patio furniture, grills, fireplaces, and electric mowers, to name a few.
Best Buy will pay around $ 85 million for Yardbird, which specializes in high-end patio sets made from sustainable materials, including recycled plastic. Prices start at around $ 2,000 for a sectional or table and chair set. The furniture brand, which started out in a small industrial building off the beaten track, now has its main showroom on Highway 7 in St. Louis Park and has opened stores in Denver, Kansas City, Detroit, Washington. DC and Philadelphia. . Demand for Yardbird’s products increased at the start of the pandemic lockdown, a trend that its founders say has continued.
Jay and Bob Dillon were on the 2021 TCB 100 list.
The Yardbird acquisition accelerates a home lifestyle trend that developed on the Best Buy website, where products like the Solo Stove outdoor heater and Weber grills were added to the mix earlier this year. The management appears to be working: Best Buy said overall sales rose 2% in the third quarter, on top of the 22% increase last year for the same period.
Still, the retailer’s stock was hit on Tuesday, falling 15% as investors worried about weakening demand and rising costs.
Barry is not discouraged. Same-day delivery is up 400% from a year ago, and Barry said the retailer hit its fastest small package online shipping times on record in the 13-month period. weeks that ended on October 31.
âOur omnichannel capabilities and our ability to inspire and support all of technology in a way that no one else can means that we are in a unique position to seize the opportunity in this environment and at the future, âBarry said. âMore people continue to work, play, cook and connect in a sustainable way at home, and as customers return to stores, digital sales were even more than double the levels of. before the pandemic, and phone, chat and door-to-door sales continued to grow. “
The good performance suggests an optimistic vacation outlook for Best Buy. âWe look forward to a strong holiday season and believe we are extremely well positioned with both the technology clients and the quick and convenient means to get it,â said CFO Matt Bilunas. âWe are committed to leading initiatives that will drive future growth and our outlook for the fourth quarter reflects continued investments in our new membership program, technology, advertising and our healthcare strategy. “
Yardbird is one of two Best Buy acquisitions made in recent weeks. The second is the $ 400 million purchase of Current Health, a home technology platform that offers remote patient monitoring, telehealth and patient engagement. âThe future of consumer technology is directly tied to the future of healthcare,â said Deborah Di Sanzo, president of Best Buy Health, in a statement announcing the acquisition. âWe have the distinct expertise to help customers make technology work for them right at home and by combining Current Health’s remote care management platform with our existing health products and services, we can create a holistic care ecosystem that appears for someone in every country. their health care needs.