Best Buy

Core hardware categories are highly price transparent and vendor‑driven, limiting retailer mark‑up potential. Best Buy’s realized pricing leverage comes from services and memberships that lift gross profit mix rather than unit price.

In FY25, domestic gross profit benefited from membership and services, partially offset by lower credit card profit‑sharing revenue. This mix‑shift is valuable but not the same as durable pricing power, and it requires continual program value to sustain fees. Tariff pass‑through is uncertain and can compress margins if the consumer balks.