Best Buy names insider Jason Bonfig as sixth CEO

Best Buy named Jason Bonfig as its next chief executive officer, effective Oct. 31. Bonfig, a 27-year veteran of the electronics retailer, will become just the sixth CEO in the company's history.

The appointment comes as Best Buy deals with softer demand for consumer electronics. The post-pandemic boom in home-office upgrades and gadget purchases has faded. The retailer now manages lower same-store sales and tighter margins. Bonfig takes over from the current CEO, whose term ends in October.

Bonfig's long tenure suggests continuity. Best Buy has historically favored internal candidates for the top job. The company's board cited his deep institutional knowledge and understanding of the business as reasons for the selection, according to the announcement.

Investors will watch whether Bonfig maintains the current strategy or pivots to address the demand slowdown. Best Buy has been cutting costs and adjusting its store footprint to align with lower sales volumes. The new CEO's priorities are likely to include further cost discipline and a push into higher-margin services like Geek Squad and membership programs.

Best Buy shares have declined in recent months as the consumer electronics cycle turned. The stock trades at roughly 12 times forward earnings, a discount to its historical average. AlphaScala's proprietary scoring system currently lists Best Buy as Unscored, meaning the platform does not have sufficient data to assign a directional rating.

Bonfig officially takes the helm on Oct. 31. The company will report its next quarterly results in late August, giving investors an early look at the trajectory Bonfig will inherit.

For more on Best Buy, see the BBY stock page.