Best Buy published a healthy first quarter 2014 earnings report on Thursday but, in tandem with the release, the retailer warned that second quarter same-store sales are expected to slump, particularly due to increased costs shoppers are facing elsewhere, but also because consumers are waiting for new smartphones to launch.
Reuters said that the retailer warned of lower same-store sales – the sales made inside stores that have been open for at least 12 months – during the next two quarters “on lower demand for many consumer electronics,” as a whole. Best Buy is also aware that some consumers are waiting for the iPhone and Amazon’s rumored smartphone to launch, the news outlet said.
The former, Apple’s iPhone 6, is expected to hit the market sometime in September, a year after Apple introduced the iPhone 5s. September sits at the tail end of the third quarter, though Best Buy may see an uptick in sales if consumers choose to buy the device, and any accessories, from Best Buy instead of a carrier.
Best Buy has also been affected by the growing costs of fuel and groceries in the United States, Reuters explained, which leaves consumers with less money to spend on luxury products, like electronics.