Health, wellness and outdoor gear are natural extensions for retailers big and small, but what happens when you’ve started selling gadgets and appliances almost exclusively?
Personal health and wellness is definitely a lucrative market to tap into.
Now worth $1.5 trillion, it has been growing at a rate of 5-10% a year with no signs of the post-pandemic slowdown predicted by some analysts.
Whether it’s Walmart (WMT) – Get the report from Walmart Inc. health services launch across Florida or Amazon rumors (AMZN) – Get the report from Amazon.com, Inc. Peloton eyeing (PTON) – Get the Class A report from Peloton Interactive, Inc. as a possible takeover target, major retailers are racing to carve out a niche in this market and offer customers something wellness-related.
Expect to see more health and skincare devices at Best Buy
best buy (BBY) – Get the report from Best Buy Co., Inc.which started as a Minnesota audio store in 1996, recently made a series of announcements regarding its own foray into health, wellness and transportation.
Specifically, 300 stores across the country now have dedicated skincare sections.
These include devices such as the Foreo Power Cleanser and TheraFace PRO Portable Health Cleansers.
Don’t expect to see nail polish or lipstick just yet because the products, while beauty-focused, are still electronic gadgets.
“These tech-driven products come with features like pulsed facial cleansing for deep cleansing, LED light therapy to help reduce wrinkles, and microdermabrasion to help improve skin texture – and that’s just the beginning,” the company said in a statement.
After acquiring furniture company Yardbird in 2021, Best Buy has also increased its selection of outdoor appliances such as grills, outdoor TVs, speakers and fire pits.
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The retailer also plans to increase its selection of electric scooters so that within the next 18 months nearly every store nationwide will have one that visitors can pay for and ride on the spot.
Best Buy also plans to launch charging stations as well as on-site consultation and repair services for these scooters in select stores.
“We currently have over 750 electronic transportation products and accessories available on BestBuy.com,” Best Buy said.
“Over the next 18 months, we’ll be carrying a selection of these products in nearly every Best Buy store.”
Will this help Best Buy stay competitive?
Throughout the pandemic, we talked about how the first salvo of “I’m going to be so fit!” this led to impulse buying of Peloton bikes would fade as stay-at-home orders subsided.
But according to new figures released by market research firm NPD, spending on health and wellbeing remains higher than it was in 2019 by double digits.
Cleaning, fitness and books on home gardening, self-help and hobbies are other categories that have all seen double-digit growth in recent months.
As a result, companies that are able to offer consumers these types of products will automatically have an advantage over those that do not.
While not everyone is able to incorporate healthcare products into their offering with equal success rates, we can still expect to see more and more retail investment in this space in the future.
“U.S. consumer spending on wellness categories including fitness, nutrition, appearance, sleep and mindfulness is increasing as approximately 40% of U.S. consumers rate these categories as a high priority” , wrote the authors of a recent McKinsey report on health and health. welfare spending.