Best Buy makes a big bet on health tech
Best Buy Co. last week set a goal to provide five million seniors with health monitoring services in five years, up from one million currently, as healthcare shifts to a primary growth opportunity.
Providing home health tech services is a cornerstone of a five-year plan to reach $50 billion in total revenues by 2025, up from $43 billion expected for the current year, CEO Corie Barry revealed in her first presentation to Wall Street since succeeding Hubert Joly in June.
Best Buy sees a $50 billion market in health tech as the U.S. population of 65 and older is set to double by 2060. Two out of three seniors live with two or more chronic conditions and 90 percent of them want to stay at home.
“We’re looking at a population that is aging incredibly rapidly. It’s massive,” Ms. Barry told reporters.
To support the push, Best Buy spent $1 billion on acquisitions over the last year, the biggest of which was last October’s addition of GreatCall, a seller of emergency-response systems. Other purchases include Critical Signal Technologies, known for remote patient monitoring, and the predictive healthcare technology business of BioSensics.
Remote monitoring tools may include algorithm-driven pendants that track how a senior is walking and predict the risk of falling, refrigerators with sensors that measure whether an individual has been eating, and wireless scales that monitor patients with congestive heart failure. Collaborations are expected with insurers, who are seeking ways to monitor patients at home to avoid hospital stays.
The expanding health tech offerings will complement Best Buy’s Geek Squad and In-Home Advisors tech repair and home consulting services.
A related 2025 goal is to double what Best Buy calls “significant customer relationship events” to 50 million. That count includes Total Tech Support and other paid memberships, homes visited via In-Home Consultation and other services, active digital engagement on Best Buy’s mobile app, financial services provided and senior lives supported. Said Asheesh Saksena, president of Best Buy Health, in a blog entry, “Our mission is simple: enable seniors to live longer in their own homes with the help of technology and support.”
- Best Buy Provides Investor Update On Building The New Blue Growth Strategy – Best Buy
- A Recap Of Best Buy’s 2019 Investor Update – Best Buy
- Electronics giant Best Buy sees future in health care – USA Today
- How Best Buy plans to expand into home healthcare services, remote monitoring to help seniors age in place – ZDnet
- Healthcare May Eventually Become A Bigger Business For Best Buy Than Selling Electronics – Forbes
- Best Buy CEO Explains Her Big Bet on Healthcare Tech – Fortune
- Best Buy CEO Eyes Health Care as Retailer’s ‘Next Big Thing’ – Bloomberg
- Best Buy makes health and wellness tech a strategic priority – Retailwire
DISCUSSION QUESTIONS: What do you think of the growth potential for health tech at home and is Best Buy well positioned to exploit it? What steps may Best Buy have to take to fend off competitors?