Best Buy launches a new $200 membership program to fight Amazon

The retailer said Wednesday that it was piloting a $199.99 annual membership program with free device installations, a concierge service for tech support and other perks. The program, Best Buy Beta, will be available at around 60 Best Buy stores in six states by the end of this month. It also includes free shipping without order minimums, extended return windows and exclusive sales.

With the new membership, he said, Best Buy (BBY) is targeting customers who “have more devices and technology in their home, but have trouble understanding it all and need help.”

Best Buy currently has aanother, more limited membership program, Total Tech Support, that it launched in 2018. The new membership program will replace Total Tech Support in the the six states where it’s launching, and Baker expects to one day fully replace the prior concept.

“You need to keep making these subscription offerings more attractive to customers,” said Baker.

Best Buy is launching the membership after a strong year in the pandemic. The retailer saw a surge in sales of items from laptops to kitchen appliances as more Americans worked and cooked at home. During its latest quarter ending Jan. 30, comparable sales, or those at stores open for at least one year, increased 12.6% compared with the year prior.