Best Buy’s CEO Corie Barry is stepping down: The journey from a comeback architect to a cautionary example

(SeaPRwire) –   When Corie Barry was appointed CEO of Best Buy seven years ago this month, there was significant optimism that the electronics retailer would build upon a period of successful revitalization. After all, she had been a primary architect of that turnaround while serving as chief strategic transformation officer under her predecessor, Hubert Joly.

However, that vision did not materialize: Best Buy’s revenue is currently lower than when she assumed the CEO role, and the company is struggling to find a clear path forward.

Barry, who has frequently been recognized as one of the Most Powerful Women in business in recent years, announced today that she will step down as CEO this autumn, just ahead of the critical holiday shopping season. She will be succeeded by Jason Bonfig, a long-tenured Best Buy executive currently serving as the company’s chief customer, product, and fulfillment officer.

Barry has notable achievements from her time at Best Buy: she acted as Joly’s primary partner in executing one of the most significant retail turnarounds in history, successfully positioning Best Buy’s stores and website to retain loyal customers against Amazon and avoiding the collapse that claimed rivals like Circuit City.

During her first analyst day as CEO in 2019, Barry stated that Best Buy was targeting $50 billion in annual revenue by 2025, banking on its emerging healthcare division to serve as a primary growth driver. Yet, last year, revenue reached only $41.7 billion, and the company recorded write-downs on its Best Buy Health investments after the segment failed to meet expectations. During her tenure, Best Buy shares increased by 6%, significantly trailing the 157% gain seen by the S&P 500.

To be fair, Best Buy did briefly surpass the $50 billion revenue goal, largely due to the COVID-19 pandemic, which saw sales surge as consumers purchased laptops and home-entertainment systems for remote work and schooling. Sales for the fiscal year ending in early 2021 climbed 21% to $51.8 billion.

Barry received recognition for navigating the pandemic’s volatility, including managing sales spikes, supply chain and inventory pressures, implementing curbside pickup, and addressing the operational disruptions caused by store closures. In a press release on Wednesday, the company’s board noted that Barry “skillfully guided the company through many external challenges.” Other notable successes during her leadership included the introduction of the Best Buy Ads retail media network and an online marketplace.

However, electronics sales eventually normalized following the pandemic. While Barry earned praise for cost-management efforts—including multiple rounds of layoffs and store-level reorganizations—to protect margins, analysts have criticized the lack of a strategy to reignite sales growth now that the pandemic-era boost is six years behind the company.

Neil Saunders, managing director of GlobalData, noted in a report to clients that Best Buy stores remain “largely uninspiring spaces” that primarily encourage “casual browsing.” He added, “Rather than rethinking how it approaches the market, Best Buy has dabbled in adding non-electronics categories like furniture to the store.”

The responsibility of reimagining Best Buy now shifts to veteran executive Bonfig. Having joined the company as an inventory analyst in 1999, he currently oversees critical functions including merchandising, e-commerce, marketing, supply chain, Best Buy Canada, and the company’s retail media network.

Barry departs with a reputation as a capable manager and steward, though she is not viewed as the transformational leader required to reinvent a legacy retail brand for a difficult era in consumer sales.