Why Best Buy Is Blaming Taylor Swift And Funflation For Sagging Tech Sales

Best Buy thinks that Taylor Swift and "funflation" are both bad for business. Why is that? Because potential consumers would rather spend money on watching her concerts than buy big ticket consumer electronics, according to Best Buy CEO Corie Barry.

The CEO blames the whole "funflation" phenomenon—where consumers are spending more on experiential things rather than material luxuries—for causing a large dip in Best Buy's sales, especially on upscale items. At Fortune's recent Most Powerful Women summit, Barry said, ""Funflation,' Taylor Swift… those experiences are really where people are willing to pay," Barry added that this meant "bigger ticket items in electronics are not right now where people are interested."


According to Barry, consumers are now wanting to enjoy things that they missed out during the pandemic lockdown, which has led to a shift in spending on things like Taylor Swift shows. Among the items with the lowest demand at Best Buy have been computers and TVs. In fact, the company's second quarter revenues have been falling— while 2021 saw a peak of $11.8 billion, this year has seen a drop to $9.5 billion. Meanwhile, Taylor Swift's Eras tour has so far raked in $780 million, with average ticket sales at $253 a pop. That's not factoring in how much her fans spent on travel, lodging, food, and merchandise. 

While "funflation" might be spotlighted as a new threat to tech sales, it doesn't tell the full story. Firstly, massive shifts in spending on entertainment over other material luxuries has happened before—think the Olympics, World Cup, as well as Formula 1 races. Secondly, the lack of innovation in mainstream electronics such as TVs, smartphones, cameras, or home theater (many of which happen to be Best Buy's core products), combined with consumer preference for mobile online shopping continue to hit hard for brick-and-mortar stores.

Taylor Swift photo credit: Ronald S Woan via Flicker