The company said its revenues were down 5% year-on-year in the nine weeks to 04 April 2020. To offset the reduced sales, the company is furloughing around 51,000 hourly store employees in the US, including nearly all part-time employees, from 19 April. The company is retaining approximately 82% of its full-time store and field employees on its payroll, including the vast majority of In-Home Advisors and Geek Squad Agents. Furloughed employees will retain their health benefits at no cost to them for at least three months.
Other efforts will include a focus on essential items for customers, extending payment terms with key vendors, reducing promotional and marketing spend and lowering capital spend to focus on mandatory maintenance or high-value strategic areas. It will also suspend matching pension contributions. Best Buy earlier suspended its share buyback and withdrew its financial guidance. In late March 2020 it drew down all of its USD 1.25 billion revolving credit facility.
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