Best Buy (NYSE: BBY) revealed Tuesday that it is launching a new annual membership program across the U.S. with various perks. The program will feature technology support as well as access to hard-to-find products throughout the holiday season.
The service, which was piloted in several locations six months ago, will have an annual cost of USD199.99. Customers will receive 24/7 tech support, exclusive prices on items, product protection, free shipping and installation, as well as 60-day return and exchange periods.
Amid continuous supply chain issues following the covid-19 pandemic, the membership may be enticing to many customers looking to buy low stock items. Analysts are encouraging customers to get their shopping done early and purchase items when they find them in store. Nevertheless, the retailer did not disclose which exclusive products would be available to members.
According to Piper Sandler analyst Peter Keith, the program is “a potential game-changer… We expect the new membership program to garner significant interest/sign-ups over the holiday season.”
Sandler’s analysis indicates signs of a potential 3% increase in sales and a 5% to 8% boost in earnings per share throughout the next two years. Best Buy shares have risen 7% this year and have a current market cap of USD26.25 Billion.