Best Buy

From Wikipedia, the free encyclopedia

For the defunct chain of catalog showrooms see: Best Products.

Best Buy Co., Inc.
Type	Public (NYSE: BBY)
Founded	1966
Headquarters	Richfield, Minnesota, USA
Key people	Brian J. Dunn, President Richard M. Schulze, Founder & Chairman Brad Anderson, CEO & Vice Chairman
Industry	Retailing
Products	Retailing-Electronics
Revenue	US$30.8 billion
Employees	128,000
Slogan	Thousands of Possibilities. Get Yours.
Website	http://www.bestbuy.com

Best Buy is sometimes called the "big blue box" because of the prominent design on Best Buy stores resembling a blue box. This store is located in East Palo Alto, California.

Best Buy Co., Inc. (NYSE: BBY) is a Fortune 100 company and the largest specialty retailer of consumer electronics in the United States and Canada, accounting for 17% of the market.^[1] The company's subsidiaries include Geek Squad, Magnolia Audio Video, and Future Shop in Canada, which together operate over 1150 stores in the United States, Canada and China.^[2] The company's corporate headquarters are located in Richfield, Minnesota, USA (near Minneapolis).

Best Buy was named "Company of the Year" by Forbes magazine in 2004,^[3] "Specialty Retailer of the Decade" by Discount Store News in 2001,^[4] ranked in the Top 10 of "America's Most Generous Corporations" by Forbes magazine,^[5] and made Fortune Magazine's List of Most Admired Companies in 2006.^[6]

[edit] History

1966 -- Richard M. Schulze and business partner open Sound of Music, an audio specialty store, in Saint Paul, Minnesota.

1967 -- Sound of Music acquires Kencraft Hi-Fi Company and Bergo Company. Second and third Sound of Music stores are opened near the University of Minnesota and in downtown Minneapolis. The Sound of Music ends its first year with gross sales of $173,000.

1969 -- Sound of Music stock first traded as publicly-held company; company enacts first employee stock option plan; three stores opened in the Twin Cities area.

1970 -- Sound of Music hits the $1 million mark in annual revenues.

1979 -- Sound of Music becomes the first suppliers of video and laserdisc equipment include Panasonic, Magnavox, Sony and Sharp.

1981 -- A tornado hits the Roseville, Minnesota store on June 14. Sound of Music responds with a "Tornado Sale," and it becomes an annual event.

1983 -- Sound of Music’s board of directors approves a new corporate name: Best Buy Co., Inc.; opens first superstore in Burnsville, Minnesota, featuring expanded selling space, a wide assortment of discounted brand-name goods, central service, and warehouse distribution; stores begin selling appliances and videocassette recorders.

1987 -- Best Buy (symbol BBY) debuts on the New York Stock Exchange with an offering of 8.3 million shares.

1989 -- Best Buy unveils a new “grab-and-go” store format. Best Buy’s brand logo changes to the familiar yellow tag.

1995 -- Best Buy develops and implements the Standard Operating Platform (SOP) to support and manage every aspect of the company’s business; the Answer Center kiosk is nominated for the Computerworld Smithsonian Award.

1997 -- Best Buy becomes the first national retailer to sell DVD hardware and software.

1998 -- Best Buy sells its 1-millionth DVD, a year after the DVD’s debut. The company also begins selling high-definition television.

2000 -- Best Buy enters the online retailing business by launching Bestbuy.com; Best Buy acquires Magnolia Hi-Fi (renamed Magnolia Audio Video in 2003), a retailer of high-end consumer electronics; music Compact Cassettes are removed from most stores.

2001 -- Best Buy acquires the Canada-based electronics-chain Future Shop Ltd. and marks the company's entrance to the international marketplace; Best Buy acquires Musicland, a mall -based retailer for music and entertainment software; Best Buy launches Redline Entertainment, an independent music label and action-sports video distributor.

2002 -- Brad Anderson succeeds Schulze as Best Buy's CEO; the company acquires Geek Squad®, a 24-hour computer support taskforce; first Canadian Best Buy store opens in Toronto.

2003 -- U.S. Best Buy stores surpass the 600 mark; the company opens its first global sourcing office in Shanghai; Fortune magazine ranks Best Buy #4 on its list of most admired U.S. companies in the specialty retailers industry; the corporate offices are consolidated in one headquarters campus; Best Buy divests itself of Musicland; the company begins to segment their stores, which is considered a major part of the company's "customer centricity" transformation; the Reward Zone loyalty program and the Sweet Tracks Christmas music series are both introduced in the U.S.

2004 -- Forbes magazine names Best Buy “Company of the Year.” Geek Squad precincts are opened in every Best Buy store nationwide, offering in-store service during store business hours; Best Buy offers Learning Place, its post-purchase, online customer service center. Best Buy customers purchase secure access to interactive product user-manuals, live text/voice chat service and a discussion forum to use, fix and extend the products they buy.

2005 -- Sound & Vision magazine awards Best Buy it's first ever "Retailer Innovation Award" for its Magnolia store within a store concept and other retail innovations.[[2]]

2006 -- Best Buy acquires a majority interest in the retail chain Jiangsu Five Star Appliance Co., Ltd. China’s fourth-largest appliance and consumer electronics retailer. On November 17th, the company signs a lease to open a 4-floor store later in 2007 at the former Virgin Megastore on trendy and upscale Newbury Street in Boston, Massachusetts, setting this location up to be one of the largest in the company. In late December, Best Buy soft-opens its first Best Buy-branded store in Shanghai; an 80,000 square foot location (the largest in the company).^[7][8] Best Buy opens its 800th store in Chicago, Illinois.

2007 -- On January 26, 2007 the first Best Buy in China had its grand opening. It is officially the largest Best Buy in existence. In March, Best Buy announced plans to purchase Seattle, WA based Speakeasy, Inc., a broadband and VOIP services provider.^[9]

[edit] Business model

Best Buy Store in Edmonton, Alberta.

Best Buy sells consumer electronics as well as a wide variety of related merchandise such as computers, computer software, Video games, music, DVDs, mobile phones, digital and video cameras, as well as home appliances (washing machines, dryers, and refrigerators), in a non-commissioned sales environment. Each store also includes a department for A/V equipment for automobiles, offering on-site installation services, as well as a Geek Squad "precinct" for computer repair and warranty service and accidental service plans.

Best Buy building exteriors are usually light brown in color with the entrance in an area designed to look like a blue box emerging from the rest of the structure. Older stores have a more utilitarian brick building without the blue structure.

In April 2005, the company was the first major retailer to announce the elimination of all mail-in rebates. ^[10]

As of February 25, 2006, the company operates 742 Best Buy Stores, 20 Magnolia Audio Video Stores (specializing in high-end electronics), and 12 stand-alone Geek Squad operations through its U.S. retail subsidiary. They also operate 44 Best Buy and 121 Future Shop stores, as well as 5 stand-alone Geek Squad operations in Canada.^[11] In 2003, the company opened its first international global procurement office in Shanghai, and also operates sourcing offices in Beijing and Shenzhen, primarily to reduce costs and increase the speed to market by purchasing products directly from manufacturers. As of 2006, the company began opening lab stores in China to open an avenue to the Asian market.

With the acquisition of Seattle based Speakeasy, Inc., Best Buy will be able to offer broadband and VOIP services to small businesses through their Best Buy for Business unit.^[12]

[edit] Demographics

Some Best Buy stores like this one in Pinole, California, in the Bay Area have bilingual English and Spanish signage

Customer Centricity is the name of a business movement centered around catering to specific customer needs and behaviors.^[1] Best Buy's concept of customer centricity means configuring its stores to serve the needs of the particular customer segments that predominate in the area of that store. Some of the ways that the Best Buy company transforms its stores for a customer segment, is using different types of store signage, fixtures, lighting and even uniforms. One of the things the company has done for some segments is to create a personal shopping assistant, so that a customer can call and make an appointment for their shopping trip.^[1]

Instore display showing a high def video camera vs a SD camera.

The company has created "lab stores" (separate from regular segmented stores) to test the area's acceptance to the theme and segment products and services. While the renovation of its stores is expensive, sometimes nearing $1 million per store, CEO & Vice Chairman Brad Anderson claims that stores that have already been transformed have doubled their growth rate versus stores that have yet to be transformed. In 2006, Best Buy continued to expand on the customer centricity operating model by opening or converting 233 U.S. Best Buy stores to the customer centricity operating model. During that same year, Best Buy operated 300 segmented stores, or 40% of the U.S. Best Buy stores. As of February 25, 2006, it operated 742 U.S. Best Buy stores in 49 states and the District of Columbia that averaged approximately 41,300 retail square feet. ^[13]

[edit] Private label brands

As with most retailers, Best Buy owns some of the brands it sells. Best Buy currently has five private labels which include Insignia, Dynex, Init, Geek Squad, and Rocketfish. Insignia focuses on electronic equipment, including televisions, monitors, car stereos, home theater systems, and portable video and audio players.^[14] VPR Matrix (discontinued) focused on personal computers and accessories including desktops, notebooks and computer monitors. Dynex focuses on a wide variety of computer and entertainment accessories such as storage media, data and power cables and office supplies. Init focuses on storage products such as media storage, equipment bags, totes and furniture for home theaters. The Geek Squad brand can be found on the company's high end computer accessories and cables. Rocketfish focuses on high end cables primarily used with home theater installation and setup.

[edit] Corporate sponsorships

Best Buy is the primary sponsor for NASCAR team Haas CNC Racing and their driver Jeff Green.^[15] The company started sponsoring Haas CNC Racing in 2005 as an associate sponsor with their driver Mike Bliss.

[edit] Criticism

[edit] Connecticut Attorney General Investigation

Best Buy is under investigation by the Connecticut State Attorney General Richard Blumenthal, in response to complaints from consumers that prices at the company's official website (Bestbuy.com) differ from prices that are shown on an in-store version of the website. Dawn Bryant, spokeswoman for the Richfield-headquartered retailer, confirmed that store employees have access to an internal Web site that looks nearly identical to the public BestBuy.com site. But she said company policy is to always offer customers the lowest quoted price, unless it's specifically identified as a deal available only to online shoppers. "There is not and never has been an intent to mislead our customers, period," Bryant said.^[16]

[edit] Xbox 360 and Playstation 3 debut

Best Buy was the subject of media attention on two separate occasions in late 2005 and again in late 2006 during the release of two popular gaming consoles; the Xbox 360, and the PlayStation 3. In December 2005, despite any advertised bundle packages for the Xbox 360, some individual stores required customers to make a minimum purchase of certain accessories, games and/or service plans to be able to purchase the console. This resulted in a corporate-issued apology to customers.^[17] In November 2006, Best Buy was in the headlines again, when an alleged error occurred on the company's website that allowed customers to pre-order the Playstation 3 console. Customers were notified by emails explaining that the pre-order was an online error and has been canceled, and that they would not be charged for the new console.^[18]

[edit] Civil Action by Wisconsin Attorney General

In May 2005, the Wisconsin State Attorney General's office filed a civil action against Best Buy Company, Inc., over several alleged violations of Wisconsin consumer protection laws. Among the allegations: misleading representations to Wisconsin customers about rebates, service plans, supplemental magazine subscriptions, exchange policies, restocking fees, gift cards, and reward zone points. ^[19]

[edit] No 'Christmas' in advertising

The relevance of particular information in (or previously in) this article or section is disputed.
The information may have been removed or included by an editor as a result.
Please see discussion on the talk page considering whether its inclusion is warranted.

It has been suggested that this article or section be merged into Christmas controversy. (Discuss)

See also: Christmas controversy

In November 2006, Best Buy announced that it would not use the word "Christmas" in its 2006 advertisements. Dawn Bryant, a Best Buy spokeswoman, stated: "We are going to continue to use the term holiday because there are several holidays throughout that time period, and we certainly need to be respectful of all of them."^[20] The Christian organization American Family Association criticized Bryant's statement, saying she equated saying "Merry Christmas" with showing disrespect. Furthermore, the AFA has launched a campaign against Best Buy's policy.^[21] In reaction to the same policy, the Catholic League placed Best Buy on its 2006 Christmas Watch List.^[22]

[edit] References

1. ^ ^{a b c} Boyle, Matthew. "Best Buy's Giant Gamble." CNN. March 29, 2006. Retrieved on November 28, 2006.
2. ^ Chris Serres "[http://www.startribune.com/535/story/991027.html/ Adaptation is key for Best Buy ]." Star Tribune. February 08, 2007. Retrieved on February 16, 2007.
3. ^ Tatge, Mark. "Fun & Games." Forbes. January 12, 2004. Retrieved on August 22, 2006.
4. ^ Staff Writer. "DSN honors Best Buy with Specialty Retailer award." Discount Store News. January 22, 2001. Retrieved on August 22, 2006.
5. ^ Moyer, Liz. "The Most Charitable Companies." Forbes. November 14, 2005. Retrieved on August 22, 2005.
6. ^ Staff Writer. "America's Most Admired Companies 2006." CNN. Retrieved on August 22, 2006.
7. ^ Busch, Sue; Driscoll, Jennifer. "Best Buy to Acquire Majority Interest in Jiangsu Five Star." (press release) Best Buy. May 12, 2006. Retrieved on August 22, 2006.
8. ^ Busch, Sue. "Best Buy to Open First Store in China; Will Locate in Shanghai's Premier Shopping District." Best Buy. April 1, 2006. Retrieved on August 22, 2006.
9. ^ Dudash, Jeff."Best Buy Acquires Speakeasy." (press release) Best Buy. March 27, 2007. Retrieved on March 27, 2007.
10. ^ John Vomhof Jr. "Best Buy starts to eliminate mail-in rebates." Minneapolis St. Paul Business Journal. January 24, 2006.
11. ^ Staff Writer. "Fiscal Year 2005 Fact Sheet - Q4." Best Buy. February 25, 2006. Retrieved on August 22, 2006.
12. ^ Staff Writer. "Best Buy to buy voice and data services provider.." Reuters. March 27, 2007
13. ^ "Best Buy Co. Full Description." Reuters. Retrieved on December 1, 2006.
14. ^ Spooner, John G. "Best Buy initiates a battle of the brands." c|net. October 4, 2004. Retrieved on November 27, 2006.
15. ^ Press Release. "Best Buy on board with Green's No. 66." NASCAR. January 12, 2006. Retrieved on November 28, 2006.
16. ^ Patrick Condon, AP Writer"[1]." Washington Post March 6, 2007. Retrieved on March 16, 2007.
17. ^ Dunn, Brian. "Open Letter to Customers." Best Buy. December 6, 2005. Retrieved on August 30, 2006.
18. ^ "Best Buy rescinds pre-order offer for PlayStation 3." Associated Press November 13, 2006. Retrieved on November 30, 2006.
19. ^ "Consumer Protection Lawsuit is Filed Against Best Buy." WI Department of Justice. Retrieved on January 01, 2007.
20. ^ Wal-Mart Opts for 'Christmas' Marketing. Associated Press. November 15, 2006. Retrieved on January 28, 2007.
21. ^ Wildmon, Donald Best Buy Bans Use of Merry Christmas In Advertising . American Family Association. November 10, 2006. Retrieved on November 10, 2006.
22. ^ "Christmas Watch." Catholic League. Retrieved on November 24, 2006.

[edit] External links

Find more information on Best Buy by searching Wikipedia's sister projects
	Dictionary definitions from Wiktionary
	Textbooks from Wikibooks
	Quotations from Wikiquote
	Source texts from Wikisource
	Images and media from Commons
	News stories from Wikinews
	Learning resources from Wikiversity

• Official Website
• Best Buy Canada
• Best Buy for Business
• Future Shop (Canada)
• Geek Squad
• Magnolia Audio & Video