Best Buy is one of the largest electronics retailers in the United States, and there are several major Best Buy competitors that investors should be aware of. It faces stiff competition from a variety of companies, both online and offline. 

In this article, we will take a look at the largest Best Buy competitors and what makes them different. We will also explore Best Buy's competitive advantage and how it stacks up against its rivals. 

What companies are like Best Buy? 

Several other companies compete with Best Buy in the electronics retail space. These include Walmart, Target, and Costco. Before we analyze these retail companies, let's take a look at the popular company Amazon and see if they are competitors. 

Is Amazon a Best Buy competitor? 

Yes, Amazon is a direct competitor to Best Buy. Both companies sell electronics and appliances online. The difference is that Best Buy has retail stores. This doesn't seem to be a problem for Amazon as it's been eating into Best Buy's market share in recent years. 

What sets Amazon apart from Best Buy?

Several things set Amazon apart from Best Buy:

  • Size of the company
  • Aggressive pricing
  • A wider selection of products
  • Online presence 

First, Amazon is much larger than Best Buy. Amazon has a market capitalization of $1.38 Trillion, while Best Buy is worth only $24.70 billion. 

Second, Amazon is much more aggressive in terms of pricing. The company often sells products at or below cost to gain market share. 

Third, Amazon has a much wider selection of products than Best Buy. 

Fourth, Amazon is a pure e-commerce company, while Best Buy also has physical stores. This gives Amazon a significant cost advantage. Finally, Amazon Prime offers free shipping on many items, which is a big benefit for customers. 

Best Buy’s competitive advantage 

Best Buy's competitive advantage lies in its physical stores. The company has over 1000 stores in the United States, which gives it a significant footprint. 

Best Buy also offers a wide selection of products, compared to Amazon. Lastly, Best Buy offers services such as Geek Squad, which helps customers set up and troubleshoot electronics devices. This service is not offered by Amazon. 

Best Buy competitors

Now that we know what Best Buys' competitor advantage is, let's see how it compares to other businesses in the retail electronics industry. 

What makes Walmart a viable competitor for Best Buy? 

Walmart is the world's largest retailer and it operates over 11,000 stores worldwide. It is also one of the most diversified retailers. Offering products and services in a variety of categories such as groceries, apparel, health and wellness, automotive, and home improvement. 

Walmart is a formidable competitor for Best Buy because it offers similar products at lower prices. In addition, Walmart has been investing heavily in its e-commerce platform to compete with Amazon. 

What makes Target one of the largest Best Buy competitors? 

Target is a discount retailer that offers a wide assortment of products across a variety of categories such as clothing, home goods, beauty products, and electronics. 

It also offers several exclusive brands that cannot be found at other retailers. Target differentiates itself from other retailers by offering excellent customer service. 

In addition, it has been expanding its product lineup to include more organic and sustainable options. 

How does Costco compare to Best Buy? 

Costco is a membership-based warehouse club that offers a wide range of products at discounted prices. It specializes in selling bulk quantities of goods, which allows it to offer lower prices than other retailers. 

Costco is a viable competitor for Best Buy because it offers similar products at lower prices. However, Costco does not have as extensive of a product lineup as Best Buy and its customer service is not as good. 

Additionally, Costco's warehouses are typically located in rural areas, while Best Buy has stores in most major metropolitan areas. 

Who is the largest Best Buy competitor? 

In terms of size and scalability, Best Buy's biggest competitor is Amazon. Amazon accounted for 33 percent of all electronics spending online in the United States in 2017. 

This is a problem for Best Buy as more and more people are shopping online and there doesn't seem to be any indication of this changing anytime soon. Best Buy has been struggling to keep up with Amazon's growth and its aggressive pricing strategy. 

In response, Best Buy has been investing heavily in its e-commerce platform and expanding its product lineup to include more home appliances and other items that are not typically sold by Amazon. 

How is Best Buy different from its competitors? 

In conclusion, Best Buy is different from its competitors because it has a physical store presence, offers services such as Geek Squad, and has a wide selection of products. However, it faces stiff competition from Amazon, Walmart, and Target. 

Best Buy differentiates itself from online retailers by providing home appliances that are typically too fragile and heavy to ship cost-effectively. 

What Best Buy needs to do to stay competitive

Best Buy needs to continue investing in its e-commerce platform and expanding its product lineup. It also needs to focus on providing excellent customer service. Lastly, it should continue lowering prices to stay competitive with Amazon. 

They can also consider partnering with other companies to help them reach a wider audience. For example, they could partner with a company like Samsung to help promote their products in Best Buy stores. 

Another strategy would be to focus on becoming a destination store for home appliances. This would allow them to differentiate themselves from other retailers and attract more customers. As IoT (internet of things) begins to be more popular, integrating these types of electronics can help them achieve market share from other industries. 

Finally, Best Buy could focus on providing more services to their customers. This could include offering installation and repair services for home appliances, as well as offering advice on choosing the best electronics for their needs. 

How do the public stock markets view these companies? 

Here is some data illustrating some key metrics and differences between each company's stock:

Best Buy (NYSE: BBY) 

  • Market Cap: 25.19B 
  • P/E Ratio: 10.64 
  • Dividend: 3.36% 

Amazon (NASDAQ: AMZN) 

  • Market Cap: 1.40T 
  • P/E Ratio: 42.43 
  • Dividend: No 

Walmart (NYSE: WMT) 

  • Market Cap: 392.98B 
  • P/E Ratio: 29.06 
  • Dividend: 1.58% 

Target (NYSE: TGT) 

  • Market Cap: 101.11B 
  • P/E Ratio: 14.97 
  • Dividend: 1.71% 

Costco (NASDAQ: COST) 

  • Market Cap: 234.36B 
  • P/E Ratio: 42.61 
  • Dividend: 0.60%

To summarize this data, Best Buy has the lowest valuation based on the price-to-earnings ratio, while Amazon and Costco have the highest. 

Best Buy also has the highest dividend yield, while Amazon does not have a dividend. In terms of market cap, Best Buy is the smallest out of the list. 

It's important to consider the overall potential for success and failure of all these companies beyond this data. However, these numbers should help you get a better understanding of Best Buy's competition. 


As an investor, you should always be aware of the competitive landscape when considering any stock. In this post, we took a detailed look at Best Buy and some of its main competitors. We looked at what makes each company different and how the public stock markets view them. Best Buy is a large retail chain that offers electronics, home appliances, and other items. Its main competitors are Amazon, Walmart, Target, and Costco. 

Best Buy has the lowest P/E ratio and the highest dividend yield of these four companies. However, it faces stiff competition from Amazon, which accounted for 33 percent of all electronics spending online in the United States in 2017. 

We highlighted some key strategies Best Buy can utilize if they wish to stay competitive in this industry. 

They can focus on becoming a destination store for home appliances, partnering with other companies to reach a wider audience, or focusing on providing more services. 

Finally, we looked at how the public stock markets view these companies. Before investing, it's important to understand the major players in any industry before making any investment decisions.