According to a report by the Wall Street Journal earlier this week, Best Buy Co Inc (BBY) has informed employees of some incoming job cuts at its stores, as the novel coronavirus pandemic forces retailers to become more reliant on online shopping than ever before.
“Customer shopping behavior will be permanently changed in a way that is even more digital,” a spokesperson for the company said.
Best Buy shares closed higher for an eighth consecutive trading session in New York on Thursday. The stock went up 0.66% ($0.78) to $119.59, after touching an intraday high at $120.94, or a price level not seen since November 23rd 2020 ($124.30).
Shares of Best Buy Co Inc have risen 19.84% so far in 2021 compared with a 4.27% gain for the benchmark index, S&P 500 (SPX).
In 2020, Best Buy’s stock went up 13.66%, thus, it underperformed the S&P 500, which registered a 16.26% gain.
According to Best Buy’s latest annual filing, the company employs almost 125,000 people.
In April last year, nearly 51,000 hourly employees were put on furlough by the retailer, as COVID-19-related lockdowns led to mass store closures. Still, some of the furloughed workers were brought back after stores reopened, as Best Buy Co sought to meet rising demand for game consoles and home computer equipment.