Best Buy hired a Chief Medical Officer, a move signaling its focus on in-home monitoring services as a new stream of revenue.

WHAT HAPPENED: Best Buy hired physician Daniel Grossman to head Best Buy Health, a healthcare initiative centered on remote health monitoring services. The retailer said that one million customers have signed up for the service and it hopes to expand it to five million customers in the next five years. Best Buy also acquired Great Call and Critical Signal Technologies to support this program.

WHY IT MATTERS

  • Best Buy’s electronics expertise positions the retailer to thrive in the healthcare space. Retailers like Walmart, CVS and Amazon continue to invest in healthcare offerings, but Best Buy has the opportunity to stand out with its technology-fueled, in-home care services. The retailer has both the technology capabilities and the physical store footprint to serve customers living far from healthcare facilities who need monitoring. Walmart is one of the only retailers equipt to service these suburban and rural communities, which leaves room for Best Buy to gain market share with a technology-driven approach.
  • These services will increase trust with consumers, which will drive more people to Best Buy’s stores and enable it to keep expanding its services. This marks the first time consumers will rely on Best Buy’s services for their very life, which, if it goes well, will make them long-term customers for more than just healthcare services. While Amazon’s electronics vertical took a lot of market share from Best Buy, customers who are looking for a humanized shopping experience can increasingly turn to Best Buy for their needs. These monitoring services will go a long way towards making this a reality.