US-based online retail company Best Buy aims to generate revenue of $50 billion and cut about $1 billion in costs by 2025.
Best Buy is targeting to enhance its healthcare technology business, the biggest U.S. consumer electronics retailer said on Wednesday.
The e-commerce major did not reveal how it wants to achieve its reduction in costs. It did not indicate on any job cut.
The company has identified in on healthcare technology as a key driver in the second phase of its growth plan and has made a series of purchases such as GreatCall in August 2018 for $800 million to build out the business.
Best Buy at its Investor Day also said it expects adjusted operating income to grow 5 percent in 2025. The retailer has estimated adjusted operating income to be flat to slightly up for its current fiscal year.
The retailer in August narrowed its current year revenue forecast to $43.1 billion to $43.6 billion, blaming uncertainty about future consumer behavior and the U.S. tariffs on Chinese imports.
Corie Barry, Best Buy CEO, Mike Mohan, Best Buy COO, Asheesh Saksena, president of Best Buy Health and Rob Bass, Best Buy chief supply chain officer have outlined the next phase of the company’s strategy, called Building the New Blue: Chapter Two.
The first phase of Best Buy’s “New Blue Growth” plan was initiated in 2017 by former Chief Executive Hubert Joly, who stepped down in April.