According to a statement issued earlier this month by APX Group Holdings, the parent holding company of Vivint, the company has agreed to end its retail partnership with Best Buy.
“With regards to our retail channel, the Company and Best Buy agreed in principle to end the co-branded Best Buy Smart Home by Vivint arrangement,” said Vivint CEO Todd Pedersen.
In addition, Mark Davies, CFO of APX Group, said that they have subsequently eliminated more than 400 in-store sales positions as well as related overhead costs with the end of the arrangement.
The partnership, which was launched just last summer, was significant in that it marked the first time a nationwide retailer had teamed up with an alarm company to sell a combination of connected home products and professional security monitoring.
In an interview with SecurityInfoWatch shortly after the partnership was announced, Colby Winegar, vice president of strategic business development for Vivint, said that the arrangement would not only help increase their exposure and brand awareness, but also enable them to educate consumers about the capabilities of smart home products.
“If you’re on the phone, it is hard to describe to a customer or show them how a smart home works. But in the retail stores at a Best Buy, you have equipment there and it is live and working, so you can show an example of using an Amazon Echo to lock your door, view clips or live video, turn lights on or off, and arm and disarm your system,” Winegar told SIW. “All those things you used to have talk through but now you can actually show a customer that hasn’t been interested in those kinds of features before and show them how it can be really valuable.”
Despite the end of their partnership with Best Buy, Pedersen said that the company is not giving up on the retail channel.
“We believe there are opportunities in the retail channel, and are committed to work towards more efficient ways to better help our customers explore, learn about, and buy the latest smart home products and services.”
Best Buy Acquires GreatCall
Though it may not be partnering with Vivint any longer when it comes to selling connected home and security products, Best Buy appears to remain committed to the market as the company announced last week that it has agreed to acquire GreatCall for $800 million in cash.
GreatCall provides connected health and personal emergency response services to the aging population and has more than 900,000 paying subscribers. The company’s range of services includes simple, one-touch connection to trained, U.S.-based agents who can connect the user to family caregivers, provide general concierge services, answer service-related questions and dispatch emergency personnel.
Best Buy said the acquisition is a manifestation of its “Best Buy 2020” strategy to enrich lives through technology by addressing key human needs. It is specifically focused on addressing the growing needs of the aging population with the help of technology products, services and solutions. Today, there are approximately 50 million Americans over age 65, a number that is expected to increase by more than 50 percent within the next 20 years.
The acquisition of GreatCall will also augment Best Buy’s existing efforts in the health space and help fuel the company’s further growth in the consumer and commercial markets.
“Since the launch of GreatCall, we’ve focused on providing the very best technology and services to the aging population, giving them and their families the peace of mind that comes with the right technology and support to help keep them safe and improve their lives,” said David Inns, CEO of GreatCall. “We are excited to partner with Best Buy to serve the active aging population on a bigger scale. GreatCall is already a growing, profitable business with annual revenue in excess of $300 million. By joining forces, we can do even more for this population, combining our products, services and expertise with Best Buy’s customer focus and scale to meaningfully expand our reach.”
“We know technology can improve the quality of life of the aging population and those who care for them,” said Hubert Joly, chairman and CEO of Best Buy. “Now, we have a great opportunity to serve the needs of these customers by combining GreatCall’s expertise with Best Buy’s unique merchandising, marketing, sales and services capabilities. We look forward to working closely with David and his management team and are excited by the opportunities we have in the health space and the strengths we can bring to bear in this area, especially our experience with technology and serving customers in their home.”
GreatCall will maintain its San Diego headquarters, as well as its Care Centers in Carlsbad, California, and Reno, Nevada. Inns, who has been with GreatCall since its formation in 2006, will remain as CEO.
