Best Buy said Mirakl runs its third-party marketplace and will be offering entirely new brands, categories, and products.
Jefferies reiterated its ‘Buy’ rating on electronics retailer Best Buy (BBY) after the company launched its digital marketplace on Tuesday and more than doubled the number of products available online.
The retailer said Mirakl runs its third-party marketplace and will be offering entirely new brands, categories, and products. Best Buy added that it is the company’s largest expansion ever of its product assortment, while integrating the new products from sellers across all digital experiences.
Retail sentiment on Best Buy improved to ‘extremely bullish’ territory from ‘bullish’ a day ago, with chatter at ‘normal’ levels, according to data from Stocktwits. Shares of the company were up 3.3% during midday trading.
Jefferies also maintained its $88 price target, according to TheFly. The firm noted that it anticipated a broader assortment from new vendors and categories, but it “didn’t envision the SKU assortment doubling.”
Best Buy said customers could shop from added categories like seasonal decor, automotive tech, office and home, and movies and music. The company will also soon introduce licensed sports merchandise to its product lineup.
Jefferies also noted that Best Buy’s marketplace launch in Canada in 2016 was “a great case study of how digital sales (and profits) were catalyzed,” and it expects the same result in the U.S.
Best Buy’s stock has declined nearly 14% so far this year and has fallen over 12% in the last 12 months.
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