Consumer electronics retailer Best Buy Inc. has big plans to generate $50 billion in annual revenue in five years.
Under the direction of recently appointed CEO Corie Barrie, Best Buy also is focused on digital healthcare—including its recent acquisitions of BioSensics LLC, Critical Signal Technologies and GreatCall Inc.—to generate a big portion of that new revenue.
In the past, we may have simply looked at the core retail technology products aimed at seniors and quantify that as the addressable market—this would include things like cell phone, the purse or the neck-wearable devices or tablets,” Barrie told analysts and others at a recent investor’s day event. “If we expanded that definition to include the services more geared around health and safety, think urgent response, fault detection, concierge help, these are services seniors need and want to stay in their homes, that addressable market more than doubles.”
Best Buy has ambitious goals to generate $50 billion in total sales in as soon as five years. That compares with $42.9 billion in projected annual sales for 2019.
To achieve at least part of that revenue through digital healthcare—and a capitalize on a total consumer wellness market for products and services that Best Buy puts at $630 billion—Best Buy wants to sell online services for home based healthcare such as cell phones and monitoring services to five million seniors by 2024.
We could bring technology-based solutions in the home and help connect the home to the world of the healthcare system—we could install, we could support, we could train, we could calibrate all these technologies in the home simply because we have Geek Squad, one of the largest distributed tech workforces in the country,” Best Buy president, health Asheesh Saksena told attendees. “We could also leverage our other in-home resources—in-home advisors could go in, and drop in and check on, and so on and so forth. In other words, we could do our part in making home a node in the care architecture, and that is something every major health entity is looking for.”
Best Buy sees a growing market for home-based digital healthcare based on these overall metrics:
- 10,000 people turn 65 every single day and two-third of seniors over 65 live with one or more chronic conditions.
- There will be 54 million seniors by 2023 and 90% want to live at home.
- Consumers now spend 15 hours a week taking care of a family or friend.
- Healthcare technology is a $50 billion market.
“The second step of our strategy was the opportunity to become nation’s leading remote monitoring platform to help commercial customers like insurance companies, like health systems reduce cost to serve seniors, take wastage out of that economy and improve member experience,” Saksena told attendees. “The third step in our strategy was that assuming this—all these capabilities are in place. We could now start layering on top of this value-added services to help seniors and caregivers and even the healthcare industry coordinate care and make care a standard benefit within the insurance plans.”
To build on its base in digital healthcare, Best Buy is finding new ways to better integrate its acquisition of GreatCall, a San Diego provider of cell phone and related digital home healthcare services to seniors, Critical Signal Technologies, a provider of personal emergency response systems and telehealth monitoring services for at-home seniors, and BioSensics, a developer of wearable movement sensors for healthcare.
“We knew that with GreatCall’s technology, Best Buy’s in-home access and support and CST’s high-touch, we had the lego pieces of what it takes to start building a scalable business,” he told attendees. “The piece we added thereafter was our ability to deliver proactive, predictive solutions for senior care—we are working towards serving 5 million seniors in 5 years with recurring revenue-based services.”