Best Buy
Encyclopedia
Best Buy Co., Inc. is an American
specialty retailer
of consumer electronics
in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad
, CinemaNow
, Magnolia Audio Video, Pacific Sales, and, in Canada operates under both the Best Buy and Future Shop
label. Together these operate more than 1,150 stores in the United States, Puerto Rico, Canada, China, and Mexico. In addition, the company has rolled out over 100 Best Buy Express Automated Retail
stores or "ZoomShops", operated by Zoom Systems
, in airports and malls around the U.S. The company's corporate headquarters are located in Richfield, Minnesota
.
Best Buy was named "Company of the Year" by Forbes
magazine in 2004, "Specialty Retailer of the Decade" by Discount Store News in 2001, ranked in the Top 10 of "America's Most Generous Corporations" by Forbes magazine in 2005 (based on 2004 giving), and made Fortune
magazine's List of Most Admired Companies in 2006.
On March 9, 2009, Best Buy became the primary electronics retail store (online
and bricks and mortar) in the eastern United States
, after smaller rival Circuit City went out of business. Fry's Electronics
remains a major competitor in the western United States
, while hhgregg
remains competitive in the eastern United States
. Many locations feature in-store pickup, which can be arranged through the company's website.
Best Buy is also a retailer of cellular phones with phones from Verizon Wireless
, AT&T Wireless
, Sprint PCS, and T-Mobile
. Best Buy also has standalone Best Buy Mobile stores in shopping malls that sell only a subset of products carried at the larger stores.
In 2011, during the three-month period ended February 26, Best Buy saw its revenue and profits slide, but generated a profit of $651 million on revenue of $16.26 billion. In comparison to the same period in 2010, it tallied $16.55 billion in revenue and a $779 million profit.
In 1966, Richard M. Schulze
and business partner James Wheeler opened Sound of Music, an audio specialty store, in Saint Paul, Minnesota
. In 1967, Sound Of Music acquired Kencraft Hi-Fi Company and Bergo Company. Two additional Sound of Music stores were opened near the University of Minnesota
and in downtown Minneapolis. The Sound of Music ended its first year with gross sales of $173,000 (USD). In 1969, Sound of Music's stock began trading as publicly-held company, the company enacted its first employee stock option plan, and three stores opened in the Twin Cities area. In 1970, Sound of Music hit the $1 million mark in annual revenues. In 1979, Sound of Music became the first suppliers of video and laserdisc
equipment including Panasonic, Magnavox
, Sony
and Sharp
.
On June 14, 1981, A tornado hit the Roseville, Minnesota
store. Sound of Music responded with a "Tornado Sale," (with the sale promoted as a "Best Buy") and it became an annual event. In 1983, Sound of Music's board of directors approved a new corporate name: Best Buy Co., Inc., the company opened first superstore in Burnsville, Minnesota
, featuring expanded selling space, a wide assortment of discounted brand-name goods, central service, and warehouse distribution. Stores began selling appliances and videocassette recorder
s. In 1985, Best Buy (symbol BBY) debuted on the New York Stock Exchange
with an offering of 8.3 million shares. In 1987, Best Buy's brand logo
changed to the yellow tag. In 1989, Best Buy unveiled a new "grab-and-go" store format.
hardware and software.. In 1998, Best Buy sponsored Stevie Nicks
Enchanted Tour. In 2000, Best Buy entered the online retailing business by launching Bestbuy.com, and acquired Magnolia Audio Video, a retailer of high-end consumer electronics. Music compact cassette
s were removed from most stores.
In 2001, Best Buy acquired the Canada-based electronics-chain Future Shop
Ltd., which marked the company's entrance to the international marketplace. Though fully owned by Best Buy, Futureshop remains a separate entity operating independently from Best Buy Canada. Best Buy acquired Musicland
, a mall-based retailer for music and entertainment software. Best Buy launched Redline Entertainment, an independent music label and action-sports video distributor. In 2002, Brad Anderson
succeeded Schulze as Best Buy's CEO
. The company acquired Geek Squad
, a 24-hour computer support taskforce. The first Canadian Best Buy store opened in Mississauga, Ontario
.
, Best Buy corporate offices were consolidated in one headquarter campus, Best Buy divested itself of Musicland, the company began to segment their stores, which is considered a major part of the company's "customer centricity
" transformation, the Reward Zone loyalty program
was introduced in the U.S. In 2004, Virtucom Group of Syracuse, New York
was hired to handle all online content for Best Buy which generated over $3 billion per year in revenues. In 2004, Geek Squad
precincts were opened in every Best Buy store nationwide, offering in-store service during store business hours.
In 2006, Best Buy acquired a majority interest in the retail chain Jiangsu Five Star Appliance Co., Ltd., China’s fourth-largest appliance chain. In 2007, On January 26, 2007, the first Best Buy in China
had its grand opening - touted as 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. Best Buy became the first major retailer to exit the analog television market, carrying only digital products that became mandatory in June 2009 by the FCC. In 2007, Best Buy launched mini-Geek Squad precincts in Office Depot
s in Orlando, Florida and Denver, Colorado. They also launched mini-Geek Squad precincts in FedEx Kinko's in Indianapolis, Indiana and Charlotte, North Carolina. These test markets and/or relationships with these companies ended in all markets late 2007 early 2008. In February 2011, it closed all of its own-brand stores in China, but plans to reopen two by the end of the year.
On November 17, 2011 Best Buy will open its first store in Nothern Mexico
, said store will be located in the city of Monterrey
.
in Bloomington, Minnesota
. In 2008, Best Buy announced the opening of its first pilot stores in Puerto Rico, and Mexico, as well as another store in Shanghai. Best Buy decided to promote Blu-ray over HD-DVD, a move which ultimately contributed to Toshiba's Corps. decision to drop HD-DVD. In May it agreed to buy a 50% holding in UK-based mobile phone operation The Carphone Warehouse
's retail division, Best Buy also announced that it will open branded superstores in the UK and other European countries. On July 29, Best Buy announced that it will start selling musical instruments and related gear in over 80 of its retail stores (growing to over 100 stores by 2010), making the company the second largest musical instrument distributor in the US (the largest being Guitar Center
). In early summer, Best Buy announced its addition of Best Buy Mobile to every store. On September 7, Best Buy became the first third party to sell Apple's iPhone
, adding it to all Best Buy Mobile stores. In mid-September, Best Buy announced its planned acquisition of Napster
for $121 million. A different Best Buy logo began to appear in some stores and in some company websites. This logo has a tag with yellow outline. The "Best Buy" text is outside the tag. It is unclear if this logo will replace the current one.
In 2009, Best Buy Canada, in partnership with The Carphone Warehouse, opened a Best Buy Mobile "Store Within a Store" at all Best Buy locations. During October 2009, the website BestBuy.com had a facelift. The font used in the site was changed to the font seen in the alternative logo that appeared in 2008. In November, Best Buy announced plans to team with Roxio CinemaNow
to launch an on-demand movie download service that will allow customers to stream content to any device sold by Best Buy that connects to the Internet. On 19 December, the first Best Buy in Turkey
opened in İzmir
. In 2010, Best Buy announced that it would open branded superstores in the UK and other European countries in a joint venture with The Carphone Warehouse. Best Buy opened stores in the UK, with plans for up to 200 stores eventually, although the initiative was delayed until the second quarter of 2010 by the state of the retail market. The first two Best Buy stores in the UK will open at The Junction retail park near Lakeside Shopping Centre
in Thurrock Essex, and near Southampton at Prupim’s Hedge End Retail Park. Best Buy had opened four more stores to the end of 2010, Five more were planned for early 2011. With Best Buy's financial struggles in the UK, it was announced that Best Buy Europe will be closing their 11 stores by the end of 2011 and concentrating on its Carphone Warehouse outlets.
Best Buy sells consumer electronics
as well as a wide variety of related merchandise such as computer
s, computer software
, video games, music
, DVD
s, Blu-ray discs, mobile phone
s, digital camera
, car stereos and video camera
s, as well as home appliance
s (washing machine
s, dryer
s, and refrigerator
s), in a non-commissioned
sales environment. Each store also includes installation of car audio and video equipment, on-site installation services, as well as a Geek Squad
"precinct" for computer repair and warranty service and accidental service plans.
Many Best Buy employees, especially at the corporate level, are under a policy of Results Only Work Environment
. This model is increasingly being integrated at the store level.
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
.
During September 2008, partially in an effort to eliminate losses from the Product Replacement Plan, an expanded warranty for smaller electronics, Best Buy changed their product guarantee system to Geek Squad Black Tie Gadgets and Gizmos. One notable change under the Gadgets and Gizmos plan is the gaming console exchange policy. Under this new system, the company sends the customer's console to a refurbishing site if a hardware failure occurs after 30 days, instead of replacing it with a new one. The title "Gadgets and Gizmos" has since been eliminated, without change to the service procedures.
At the same time the Product Replacement Plan was changed, the company modified its Performance Service Plan, offered on many bigger ticket items, to a system called Geek Squad Black Tie Protection. The name of this service has since changed to Geek Squad Protection as of October 16, 2011. The new service strategy includes variable levels of coverage. The standard-level plan operates similarly to the previous system, while new premium-level plans include extra services like limited free telephone troubleshooting, multi-year Geek Squad anti-virus/spyware protection, HDTV calibration, preventative maintenance checks on major appliances, accidental damage coverage, a 20% trade in bonus, and prioritization of service claims. Additionally, customers who purchase Geek Squad Black Tie Protection can claim points that, when accumulated on a Best Buy RewardZone account, can be used toward future purchases from the store or online.
, the company operated 1,010 Best Buy Stores, 13 Magnolia Audio Video Stores (specializing in high-end electronics), 7 stand-alone Geek Squad stores, 3 AudioVisions Stores, 13 Best Buy Mobile Stores (standalone) and 17 Pacific Sales Stores (in Southern California, Arizona, and Nevada), all through its U.S. retail subsidiary. They also operate 51 Best Buy and 140 Future Shop
stores throughout Canada. 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. , Best Buy operated five "branded" stores in Shanghai, one "premium" store in Beijing, as well as 151 Five Star Appliance Stores in China.
Best Buy operates numerous Best Buy Mobile stores within the U.S. as a joint venture with The Carphone Warehouse, using its successful UK business model; 13 of these are stand-alone locations (primarily in Manhattan). Best Buy Mobile locations offer customers a wider variety of cell phones than their other locations, some of which are "unlocked" phones that can be used on any GSM network. Best Buy Mobile also offers services comparable to those from carrier stores, including but not limited to a number transfer machine, warranty service on any phone, loaner phones, and the most popular carriers. Most current Best Buy Mobile stores are located in or near the Northeast region of the U.S., though the company is expanding such that most or all U.S. locations will include Best Buy Mobile services by the end of 2008.
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.
The domain bestbuy.com attracted at least 159 million visitors annually by 2008 according to a Compete.com
survey.
On February 15, 2009, Best Buy started an electronics recycling program.
In Late August 2010, Best Buy launched Video Game Trade-Ins and was now buying used video games, just like GameStop
. The Game Trade-Ins were located in over 600 Best Buy Stores in the U.S.
On November 12, 2010, the first "Connected" Best Buy will open in South Charleston, West Virginia. The "Connected" store is the first of many prototype stores that are being tested in select stores in the Pittsburgh and Las Vegas markets. These stores present more opportunities for networking and connections outside of normal electronics. Best Buy Chief Executive Brian Dunn described it as a "connected world strategy" to set Best Buy apart from other electronics retailers.
Best Buy now provides a new Buy Back Program. The program enables the customers to purchase the program at a set price, dependent on the item purchased and over time sell the item back to Best Buy at a set cost. For example, the first 6 months give 50% of the original cost back to the customer on a Best Buy gift card. Essentially the program "future proofs" the technology, allowing the consumers to get the technology they want now, and have a guaranteed amount waiting for them when it's time to upgrade.
types of store signage, fixtures, lighting and even uniforms. One of the things the company did for some segments was to create a personal shopping assistant, so that a customer could call and make an appointment for their shopping trip.
Best Buy's Sales to Customers by Geographical Regions in 2009
As of June 2011 there are currently eight Best Buy stores open in the United Kingdom
, the first to open was in Thurrock
, with Croydon
, Derby
, Hayes, Liverpool
, Merry Hill
and Southampton
following, with the most recently opened stores in Nottingham
and Rotherham
. On 7 November 2011, it was announced that all 11 stores in the UK will be closed, due to huge losses of close to £140m.
On February 22, 2011, Best Buy closed all nine stores in the People's Republic of China
without prior notice to customers and media. According to the announcement on the official website of Best Buy China, it will continue to invest in electronics retail markets in China. The investment project includes opening more than 50 'Five Star Electronic' branded stores across the country.
(or, more accurately, service plan
s). The suit claimed that Best Buy employees had misrepresented the manufacturer's warranty
in order to sell the chain's own Product Service/Replacement Plan and that Best Buy had "entered into a corporate-wide scheme to institute high-pressure sales techniques involving the extended warranties" and that the retailer used "artificial barriers to discourage consumers who purchased the 'complete extended warranties' from making legitimate claims." Best Buy ultimately settled for $200,000, but admitted no wrongdoing. In 2009, a class action lawsuit was launched against Best Buy. The lawsuit addressed the same issue. Several consumers were outraged by the sales tactics allegedly used by Best Buy employees to sell their Performance Service Plans. They were supposedly misled into thinking that the plan covered all types of damages and that they would receive a new product if they were to bring the product back to the store within the service period. According to the lawsuit, sales associates allegedly failed to disclose the details of the service plan. The results of the lawsuit are still pending, and it is unknown whether the misunderstanding was a result of misinformation given out by sales associates, or by a lack of understanding on the part of the customer.
reported on the same issue in which some customers claimed they thought they were surfing the internet version of bestbuy.com at an in-store kiosk only to learn that the site reflected in-store prices only. In response, Best Buy spokesperson Sue Busch indicated the in-store kiosks were not intended for price-match purposes and rather a means to navigate in-store availability. Since the initial investigation, a banner was placed on the in-store site to make its customers more aware of the difference.
Similar pricing errors occurred in July 2009, when the Palm Pre
was mistakenly sold for $99.99 (versus the retail of $199.99), and Best Buy honored some of the sales. Best Buy reserves the right to cancel the orders of errors on its site.
(FCC) fined Best Buy $280,000 for not alerting customers that the analog television
s they sold would not receive over-the-air stations after the digital transition
on June 12, 2009. Best Buy is challenging this ruling by the FCC saying it was and is in compliance with current FCC regulations pertaining to the digital transition.
in 2007 for purchasing raw materials or manufactured products derived thereof from logging
companies that in the opinion of Greenpeace contribute to unethical deforestation
of taiga
in Canada
.
Since that time, however, Best Buy launched what it calls Greener Together to increase the energy efficiency of its products as well as reduce consumer waste through more recyclable packaging and proper disposal of certain electronic components.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
specialty retailer
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
of consumer electronics
Consumer electronics
Consumer electronics are electronic equipment intended for everyday use, most often in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadcast receiver...
in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad
Geek Squad
The Geek Squad is a subsidiary of the Best Buy Company and is based in Richfield, Minnesota. It was originally founded on June 16, 1994 by Robert Stephens. The company offers various computer-related services and accessories for residential and commercial clients...
, CinemaNow
CinemaNow
CinemaNow is an Internet-based digital video distribution company founded in 1999.The CinemaNow library contains approximately 14,000 feature-length films, shorts, music concerts and television programs from more than 250 licensors, including 20th Century Fox, ABC News, Disney, Endemol, MGM,...
, Magnolia Audio Video, Pacific Sales, and, in Canada operates under both the Best Buy and Future Shop
Future Shop
Future Shop is Canada's largest consumer electronics retailer. Future Shop currently operates a total of 146 stores across all of Canada's provinces as of December 2008....
label. Together these operate more than 1,150 stores in the United States, Puerto Rico, Canada, China, and Mexico. In addition, the company has rolled out over 100 Best Buy Express Automated Retail
Automated Retail
Automated retail is the category of self-service, standalone kiosks in heavily trafficked establishments such as airports, malls and resorts....
stores or "ZoomShops", operated by Zoom Systems
Zoom Systems
ZoomSystems specializes in the design, technology, software development, and operation of Automated Retail stores. ZoomSystems technology and services support automated, self-service retail stores called ZoomShops located in airports, malls, military bases and retailers.ZoomSystems service...
, in airports and malls around the U.S. The company's corporate headquarters are located in Richfield, Minnesota
Richfield, Minnesota
As of the census of 2000, there were 34,439 people, 15,073 households, and 8,727 families residing in the city. The population density was 4,993.9 people per square mile . There were 15,357 housing units at an average density of 2,226.9 per square mile...
.
Best Buy was named "Company of the Year" by Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
magazine in 2004, "Specialty Retailer of the Decade" by Discount Store News in 2001, ranked in the Top 10 of "America's Most Generous Corporations" by Forbes magazine in 2005 (based on 2004 giving), and made Fortune
Fortune (magazine)
Fortune is a global business magazine published by Time Inc. Founded by Henry Luce in 1930, the publishing business, consisting of Time, Life, Fortune, and Sports Illustrated, grew to become Time Warner. In turn, AOL grew as it acquired Time Warner in 2000 when Time Warner was the world's largest...
magazine's List of Most Admired Companies in 2006.
On March 9, 2009, Best Buy became the primary electronics retail store (online
Electronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
and bricks and mortar) in the eastern United States
Eastern United States
The Eastern United States, the American East, or simply the East is traditionally defined as the states east of the Mississippi River. The first two tiers of states west of the Mississippi have traditionally been considered part of the West, but can be included in the East today; usually in...
, after smaller rival Circuit City went out of business. Fry's Electronics
Fry's Electronics
Fry's Electronics is a big-box store and retailer of software, consumer electronics, computer hardware, with in store computer repair and custom computer building services and household appliances with a chain of superstores headquartered in Silicon Valley...
remains a major competitor in the western United States
Western United States
.The Western United States, commonly referred to as the American West or simply "the West," traditionally refers to the region comprising the westernmost states of the United States. Because the U.S. expanded westward after its founding, the meaning of the West has evolved over time...
, while hhgregg
Hhgregg
hhgregg Inc. or Gregg Appliances Inc. is a publicly owned and operated appliance and electronics retailer in the Midwest, Northeast, and Southeast United States with over 3,100 employees operating stores in 16 states including Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky,...
remains competitive in the eastern United States
Eastern United States
The Eastern United States, the American East, or simply the East is traditionally defined as the states east of the Mississippi River. The first two tiers of states west of the Mississippi have traditionally been considered part of the West, but can be included in the East today; usually in...
. Many locations feature in-store pickup, which can be arranged through the company's website.
Best Buy is also a retailer of cellular phones with phones from Verizon Wireless
Verizon Wireless
Cellco Partnership, doing business as Verizon Wireless, is one of the largest mobile network operators in the United States. The network has 107.7 million subscribers as of 2011, making it the largest wireless service provider in America....
, AT&T Wireless
AT&T Wireless
AT&T Wireless Services, Inc., founded in 1987 as McCaw Cellular Communications, Inc., and now legally known as New Cingular Wireless Services, Inc., formerly part of AT&T Corp., is a wireless telephone carrier in the United States, based in Redmond, Washington, and later traded on the New York...
, Sprint PCS, and T-Mobile
T-Mobile
T-Mobile International AG is a German-based holding company for Deutsche Telekom AG's various mobile communications subsidiaries outside Germany. Based in Bonn, Germany, its subsidiaries operate GSM and UMTS-based cellular networks in Europe, the United States, Puerto Rico and the US Virgin Islands...
. Best Buy also has standalone Best Buy Mobile stores in shopping malls that sell only a subset of products carried at the larger stores.
In 2011, during the three-month period ended February 26, Best Buy saw its revenue and profits slide, but generated a profit of $651 million on revenue of $16.26 billion. In comparison to the same period in 2010, it tallied $16.55 billion in revenue and a $779 million profit.
Founding
Richard M. Schulze
Dick Schulze is the founder and chairman of Best Buy. He currently lives in Bonita Springs, Florida.He was born and raised in Saint Paul, Minnesota where he graduated from Central High School. He subsequently spent time in the U.S. Air Force with the Minnesota Air National Guard. He has an...
and business partner James Wheeler opened Sound of Music, an audio specialty store, in Saint Paul, Minnesota
Saint Paul, Minnesota
Saint Paul is the capital and second-most populous city of the U.S. state of Minnesota. The city lies mostly on the east bank of the Mississippi River in the area surrounding its point of confluence with the Minnesota River, and adjoins Minneapolis, the state's largest city...
. In 1967, Sound Of Music acquired Kencraft Hi-Fi Company and Bergo Company. Two additional Sound of Music stores were opened near the University of Minnesota
University of Minnesota
The University of Minnesota, Twin Cities is a public research university located in Minneapolis and St. Paul, Minnesota, United States. It is the oldest and largest part of the University of Minnesota system and has the fourth-largest main campus student body in the United States, with 52,557...
and in downtown Minneapolis. The Sound of Music ended its first year with gross sales of $173,000 (USD). In 1969, Sound of Music's stock began trading as publicly-held company, the company enacted its first employee stock option plan, and three stores opened in the Twin Cities area. In 1970, Sound of Music hit the $1 million mark in annual revenues. In 1979, Sound of Music became the first suppliers of video and laserdisc
Laserdisc
LaserDisc was a home video format and the first commercial optical disc storage medium. Initially licensed, sold, and marketed as MCA DiscoVision in North America in 1978, the technology was previously referred to interally as Optical Videodisc System, Reflective Optical Videodisc, Laser Optical...
equipment including Panasonic, Magnavox
Magnavox
Magnavox is a US electronics company founded by Edwin Pridham and Peter L. Jensen, who invented the moving-coil loudspeaker in 1915 at their lab in Napa, California. They formed Magnavox in 1917 in order to market their inventions....
, Sony
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
and Sharp
Sharp Corporation
is a Japanese multinational corporation that designs and manufactures electronic products. Headquartered in Abeno-ku, Osaka, Japan, Sharp employs more than 55,580 people worldwide as of June 2011. The company was founded in September 1912 and takes its name from one of its founder's first...
.
On June 14, 1981, A tornado hit the Roseville, Minnesota
Roseville, Minnesota
As of the census of 2000, there were 33,690 people, 14,598 households, and 8,598 families residing in the city. The population density was 2,543.9 people per square mile . There were 14,917 housing units at an average density of 1,126.4 per square mile...
store. Sound of Music responded with a "Tornado Sale," (with the sale promoted as a "Best Buy") and it became an annual event. In 1983, Sound of Music's board of directors approved a new corporate name: Best Buy Co., Inc., the company opened first superstore in Burnsville, Minnesota
Burnsville, Minnesota
Burnsville is a city south of downtown Minneapolis in Dakota County in the U.S. state of Minnesota. The city lies on the south bank of the Minnesota River, upstream from the confluence with the Mississippi River...
, featuring expanded selling space, a wide assortment of discounted brand-name goods, central service, and warehouse distribution. Stores began selling appliances and videocassette recorder
Videocassette recorder
The videocassette recorder , is a type of electro-mechanical device that uses removable videocassettes that contain magnetic tape for recording analog audio and analog video from broadcast television so that the images and sound can be played back at a more convenient time...
s. In 1985, Best Buy (symbol BBY) debuted on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
with an offering of 8.3 million shares. In 1987, Best Buy's brand logo
Logo
A logo is a graphic mark or emblem commonly used by commercial enterprises, organizations and even individuals to aid and promote instant public recognition...
changed to the yellow tag. In 1989, Best Buy unveiled a new "grab-and-go" store format.
Billion-dollar company
In 1990, Best Buy eliminated commissions for standalone sales people, but retained bonuses for management and supervisors. In 1992, Best Buy hit the $1 billion mark in annual revenues. In 1994, Best Buy expanded to the Maryland and Virginia markets. In 1997, Best Buy became the first national retailer to sell DVDDVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
hardware and software.. In 1998, Best Buy sponsored Stevie Nicks
Stevie Nicks
Stephanie Lynn "Stevie" Nicks is an American singer-songwriter, best known for her work with Fleetwood Mac and an extensive solo career, which collectively have produced over forty Top 50 hits and sold over 140 million albums...
Enchanted Tour. In 2000, Best Buy entered the online retailing business by launching Bestbuy.com, and acquired Magnolia Audio Video, a retailer of high-end consumer electronics. Music compact cassette
Compact Cassette
The Compact Cassette, often referred to as audio cassette, cassette tape, cassette, or simply tape, is a magnetic tape sound recording format. It was designed originally for dictation, but improvements in fidelity led the Compact Cassette to supplant the Stereo 8-track cartridge and reel-to-reel...
s were removed from most stores.
In 2001, Best Buy acquired the Canada-based electronics-chain Future Shop
Future Shop
Future Shop is Canada's largest consumer electronics retailer. Future Shop currently operates a total of 146 stores across all of Canada's provinces as of December 2008....
Ltd., which marked the company's entrance to the international marketplace. Though fully owned by Best Buy, Futureshop remains a separate entity operating independently from Best Buy Canada. Best Buy acquired Musicland
Musicland
The Musicland Group, Inc. was an entertainment company which ran Sam Goody, Suncoast Motion Picture Company and the Media Play Superstore Chain. Musicland filed for Chapter 11 Bankruptcy in January 2006. Trans World Entertainment which runs FYE, and sells CDs, DVDs, and video games, purchased...
, a mall-based retailer for music and entertainment software. Best Buy launched Redline Entertainment, an independent music label and action-sports video distributor. In 2002, Brad Anderson
Brad Anderson (executive)
Bradbury "Brad" Anderson is the former CEO and Vice Chairman of consumer electronics retailer Best Buy. He retired on 6/22/11 and was replaced by Brian J. Dunn. In fiscal 2006, he earned a salary of $1,164,283 and a bonus of $2,692,250. His annual compensation for fiscal year 2007 was $5.6...
succeeded Schulze as Best Buy's CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
. The company acquired Geek Squad
Geek Squad
The Geek Squad is a subsidiary of the Best Buy Company and is based in Richfield, Minnesota. It was originally founded on June 16, 1994 by Robert Stephens. The company offers various computer-related services and accessories for residential and commercial clients...
, a 24-hour computer support taskforce. The first Canadian Best Buy store opened in Mississauga, Ontario
Mississauga, Ontario
Mississauga is a city in Southern Ontario located in the Regional Municipality of Peel, and in the western part of the Greater Toronto Area. With an estimated population of 734,000, it is Canada's sixth-most populous municipality, and has almost doubled in population in each of the last two decades...
.
International expansion
In 2003, U.S. Best Buy stores surpassed the 600 store mark. The company opened its first global sourcing office in ShanghaiShanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, Best Buy corporate offices were consolidated in one headquarter campus, Best Buy divested itself of Musicland, the company began to segment their stores, which is considered a major part of the company's "customer centricity
Customer centricity
Customer centricity is a strategy to fundamentally align a company’s products and services with the wants and needs of its most valuable customers to maximize profits for the long term....
" transformation, the Reward Zone loyalty program
Loyalty program
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially beneficial to the firm....
was introduced in the U.S. In 2004, Virtucom Group of Syracuse, New York
Syracuse, New York
Syracuse is a city in and the county seat of Onondaga County, New York, United States, the largest U.S. city with the name "Syracuse", and the fifth most populous city in the state. At the 2010 census, the city population was 145,170, and its metropolitan area had a population of 742,603...
was hired to handle all online content for Best Buy which generated over $3 billion per year in revenues. In 2004, Geek Squad
Geek Squad
The Geek Squad is a subsidiary of the Best Buy Company and is based in Richfield, Minnesota. It was originally founded on June 16, 1994 by Robert Stephens. The company offers various computer-related services and accessories for residential and commercial clients...
precincts were opened in every Best Buy store nationwide, offering in-store service during store business hours.
In 2006, Best Buy acquired a majority interest in the retail chain Jiangsu Five Star Appliance Co., Ltd., China’s fourth-largest appliance chain. In 2007, On January 26, 2007, the first Best Buy in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
had its grand opening - touted as the largest Best Buy in existence. In March, Best Buy announced plans to purchase Seattle, WA based Speakeasy, Inc.
Speakeasy (ISP)
Speakeasy, Inc. is a broadband internet service provider and Voice over IP carrier based in Seattle, Washington, United States. They are known for their liberal usage policies for home users whereby subscribers are explicitly permitted to run any number of serversand are permitted to resell their...
, a broadband
Broadband
The term broadband refers to a telecommunications signal or device of greater bandwidth, in some sense, than another standard or usual signal or device . Different criteria for "broad" have been applied in different contexts and at different times...
and VOIP services provider. Best Buy became the first major retailer to exit the analog television market, carrying only digital products that became mandatory in June 2009 by the FCC. In 2007, Best Buy launched mini-Geek Squad precincts in Office Depot
Office Depot
Office Depot is a supplier of office products and provides many services. The company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, printing, document reproduction, shipping,...
s in Orlando, Florida and Denver, Colorado. They also launched mini-Geek Squad precincts in FedEx Kinko's in Indianapolis, Indiana and Charlotte, North Carolina. These test markets and/or relationships with these companies ended in all markets late 2007 early 2008. In February 2011, it closed all of its own-brand stores in China, but plans to reopen two by the end of the year.
On November 17, 2011 Best Buy will open its first store in Nothern Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, said store will be located in the city of Monterrey
Monterrey
Monterrey , is the capital city of the northeastern state of Nuevo León in the country of Mexico. The city is anchor to the third-largest metropolitan area in Mexico and is ranked as the ninth-largest city in the nation. Monterrey serves as a commercial center in the north of the country and is the...
.
Thousandth store
On October 24, 2008, Best Buy opened their 1000th physical store, located in the Mall of AmericaMall of America
The Mall of America, also called MOA and the Megamall, is a shopping mall located in Bloomington, Minnesota, a suburb of the Twin Cities, in the United States. It is located southeast of the junction of Interstate 494 and Minnesota State Highway 77, north of the Minnesota River and is across the...
in Bloomington, Minnesota
Bloomington, Minnesota
Bloomington is the fifth largest city in the U.S. state of Minnesota in Hennepin County. Located on the north bank of the Minnesota River above its confluence with the Mississippi River, Bloomington lies at the heart of the southern...
. In 2008, Best Buy announced the opening of its first pilot stores in Puerto Rico, and Mexico, as well as another store in Shanghai. Best Buy decided to promote Blu-ray over HD-DVD, a move which ultimately contributed to Toshiba's Corps. decision to drop HD-DVD. In May it agreed to buy a 50% holding in UK-based mobile phone operation The Carphone Warehouse
The Carphone Warehouse
Carphone Warehouse Group PLC , known as The Carphone Warehouse, is Europe's largest independent mobile phone retailer, with over 1,700 stores across Europe. It is based in the United Kingdom and is a 50% subsidiary of Best Buy...
's retail division, Best Buy also announced that it will open branded superstores in the UK and other European countries. On July 29, Best Buy announced that it will start selling musical instruments and related gear in over 80 of its retail stores (growing to over 100 stores by 2010), making the company the second largest musical instrument distributor in the US (the largest being Guitar Center
Guitar Center
Guitar Center is the largest chain of musical instrument retailers in the world with 223 locations throughout the United States. Its headquarters is in Westlake Village, California....
). In early summer, Best Buy announced its addition of Best Buy Mobile to every store. On September 7, Best Buy became the first third party to sell Apple's iPhone
IPhone
The iPhone is a line of Internet and multimedia-enabled smartphones marketed by Apple Inc. The first iPhone was unveiled by Steve Jobs, then CEO of Apple, on January 9, 2007, and released on June 29, 2007...
, adding it to all Best Buy Mobile stores. In mid-September, Best Buy announced its planned acquisition of Napster
Napster
Napster is an online music store and a Best Buy company. It was originally founded as a pioneering peer-to-peer file sharing Internet service that emphasized sharing audio files that were typically digitally encoded music as MP3 format files...
for $121 million. A different Best Buy logo began to appear in some stores and in some company websites. This logo has a tag with yellow outline. The "Best Buy" text is outside the tag. It is unclear if this logo will replace the current one.
In 2009, Best Buy Canada, in partnership with The Carphone Warehouse, opened a Best Buy Mobile "Store Within a Store" at all Best Buy locations. During October 2009, the website BestBuy.com had a facelift. The font used in the site was changed to the font seen in the alternative logo that appeared in 2008. In November, Best Buy announced plans to team with Roxio CinemaNow
CinemaNow
CinemaNow is an Internet-based digital video distribution company founded in 1999.The CinemaNow library contains approximately 14,000 feature-length films, shorts, music concerts and television programs from more than 250 licensors, including 20th Century Fox, ABC News, Disney, Endemol, MGM,...
to launch an on-demand movie download service that will allow customers to stream content to any device sold by Best Buy that connects to the Internet. On 19 December, the first Best Buy in Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
opened in İzmir
Izmir
Izmir is a large metropolis in the western extremity of Anatolia. The metropolitan area in the entire Izmir Province had a population of 3.35 million as of 2010, making the city third most populous in Turkey...
. In 2010, Best Buy announced that it would open branded superstores in the UK and other European countries in a joint venture with The Carphone Warehouse. Best Buy opened stores in the UK, with plans for up to 200 stores eventually, although the initiative was delayed until the second quarter of 2010 by the state of the retail market. The first two Best Buy stores in the UK will open at The Junction retail park near Lakeside Shopping Centre
Lakeside Shopping Centre
The Lakeside Shopping Centre is a large out-of-town shopping centre located in West Thurrock, in the borough of Thurrock, Essex just beyond the eastern boundary of Greater London...
in Thurrock Essex, and near Southampton at Prupim’s Hedge End Retail Park. Best Buy had opened four more stores to the end of 2010, Five more were planned for early 2011. With Best Buy's financial struggles in the UK, it was announced that Best Buy Europe will be closing their 11 stores by the end of 2011 and concentrating on its Carphone Warehouse outlets.
Business operations
Consumer electronics
Consumer electronics are electronic equipment intended for everyday use, most often in entertainment, communications and office productivity. Radio broadcasting in the early 20th century brought the first major consumer product, the broadcast receiver...
as well as a wide variety of related merchandise such as computer
Computer
A computer is a programmable machine designed to sequentially and automatically carry out a sequence of arithmetic or logical operations. The particular sequence of operations can be changed readily, allowing the computer to solve more than one kind of problem...
s, computer software
Computer software
Computer software, or just software, is a collection of computer programs and related data that provide the instructions for telling a computer what to do and how to do it....
, video games, music
Music
Music is an art form whose medium is sound and silence. Its common elements are pitch , rhythm , dynamics, and the sonic qualities of timbre and texture...
, DVD
DVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
s, Blu-ray discs, mobile phone
Mobile phone
A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...
s, digital camera
Digital camera
A digital camera is a camera that takes video or still photographs, or both, digitally by recording images via an electronic image sensor. It is the main device used in the field of digital photography...
, car stereos and video camera
Video camera
A video camera is a camera used for electronic motion picture acquisition, initially developed by the television industry but now common in other applications as well. The earliest video cameras were those of John Logie Baird, based on the electromechanical Nipkow disk and used by the BBC in...
s, as well as home appliance
Home appliance
Home appliances are electrical/mechanical machines which accomplish some household functions, such as cooking or cleaning. Home appliances can be classified into:*Major appliances, or White goods*Small appliances, or Brown goods...
s (washing machine
Washing machine
A washing machine is a machine designed to wash laundry, such as clothing, towels and sheets...
s, dryer
Clothes dryer
A clothes dryer or tumble dryer is a household appliance that is used to remove moisture from a load of clothing and other textiles, generally shortly after they are cleaned in a washing machine....
s, and refrigerator
Refrigerator
A refrigerator is a common household appliance that consists of a thermally insulated compartment and a heat pump that transfers heat from the inside of the fridge to its external environment so that the inside of the fridge is cooled to a temperature below the ambient temperature of the room...
s), in a non-commissioned
Commission (remuneration)
The payment of commission as remuneration for services rendered or products sold is a common way to reward sales people. Payments often will be calculated on the basis of a percentage of the goods sold...
sales environment. Each store also includes installation of car audio and video equipment, on-site installation services, as well as a Geek Squad
Geek Squad
The Geek Squad is a subsidiary of the Best Buy Company and is based in Richfield, Minnesota. It was originally founded on June 16, 1994 by Robert Stephens. The company offers various computer-related services and accessories for residential and commercial clients...
"precinct" for computer repair and warranty service and accidental service plans.
Many Best Buy employees, especially at the corporate level, are under a policy of Results Only Work Environment
ROWE
ROWE - Results Only Work Environment is a human resource management strategy co-created by Jody Thompson and Cali Ressler wherein employees are paid for results rather than the number of hours worked. Cali and Jody , who originally proposed the strategy at Best Buy, have since started a...
. This model is increasingly being integrated at the store level.
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
Rebate (marketing)
A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion marketers use primarily as incentives or supplements to product sales. The mail-in rebate is the most common...
.
During September 2008, partially in an effort to eliminate losses from the Product Replacement Plan, an expanded warranty for smaller electronics, Best Buy changed their product guarantee system to Geek Squad Black Tie Gadgets and Gizmos. One notable change under the Gadgets and Gizmos plan is the gaming console exchange policy. Under this new system, the company sends the customer's console to a refurbishing site if a hardware failure occurs after 30 days, instead of replacing it with a new one. The title "Gadgets and Gizmos" has since been eliminated, without change to the service procedures.
At the same time the Product Replacement Plan was changed, the company modified its Performance Service Plan, offered on many bigger ticket items, to a system called Geek Squad Black Tie Protection. The name of this service has since changed to Geek Squad Protection as of October 16, 2011. The new service strategy includes variable levels of coverage. The standard-level plan operates similarly to the previous system, while new premium-level plans include extra services like limited free telephone troubleshooting, multi-year Geek Squad anti-virus/spyware protection, HDTV calibration, preventative maintenance checks on major appliances, accidental damage coverage, a 20% trade in bonus, and prioritization of service claims. Additionally, customers who purchase Geek Squad Black Tie Protection can claim points that, when accumulated on a Best Buy RewardZone account, can be used toward future purchases from the store or online.
, the company operated 1,010 Best Buy Stores, 13 Magnolia Audio Video Stores (specializing in high-end electronics), 7 stand-alone Geek Squad stores, 3 AudioVisions Stores, 13 Best Buy Mobile Stores (standalone) and 17 Pacific Sales Stores (in Southern California, Arizona, and Nevada), all through its U.S. retail subsidiary. They also operate 51 Best Buy and 140 Future Shop
Future Shop
Future Shop is Canada's largest consumer electronics retailer. Future Shop currently operates a total of 146 stores across all of Canada's provinces as of December 2008....
stores throughout Canada. In 2003, the company opened its first international global procurement office in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, and also operates sourcing offices in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
and Shenzhen
Shenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
, primarily to reduce costs and increase the speed to market by purchasing products directly from manufacturers. , Best Buy operated five "branded" stores in Shanghai, one "premium" store in Beijing, as well as 151 Five Star Appliance Stores in China.
Best Buy operates numerous Best Buy Mobile stores within the U.S. as a joint venture with The Carphone Warehouse, using its successful UK business model; 13 of these are stand-alone locations (primarily in Manhattan). Best Buy Mobile locations offer customers a wider variety of cell phones than their other locations, some of which are "unlocked" phones that can be used on any GSM network. Best Buy Mobile also offers services comparable to those from carrier stores, including but not limited to a number transfer machine, warranty service on any phone, loaner phones, and the most popular carriers. Most current Best Buy Mobile stores are located in or near the Northeast region of the U.S., though the company is expanding such that most or all U.S. locations will include Best Buy Mobile services by the end of 2008.
With the acquisition of Seattle based Speakeasy, Inc.
Speakeasy (ISP)
Speakeasy, Inc. is a broadband internet service provider and Voice over IP carrier based in Seattle, Washington, United States. They are known for their liberal usage policies for home users whereby subscribers are explicitly permitted to run any number of serversand are permitted to resell their...
, Best Buy will be able to offer broadband
Broadband
The term broadband refers to a telecommunications signal or device of greater bandwidth, in some sense, than another standard or usual signal or device . Different criteria for "broad" have been applied in different contexts and at different times...
and VoIP services to small businesses through their Best Buy for Business unit.
The domain bestbuy.com attracted at least 159 million visitors annually by 2008 according to a Compete.com
Compete.com
Compete.com is a web traffic analysis service of Compete, Inc. which operates in the United States and publishes the approximate number of global visitors to the top 1,000,000 web sites in the world...
survey.
On February 15, 2009, Best Buy started an electronics recycling program.
In Late August 2010, Best Buy launched Video Game Trade-Ins and was now buying used video games, just like GameStop
GameStop
GameStop Corporation is an American video game and entertainment software retailer. The company, whose headquarters is in Grapevine, Texas, United States, operates 6,500 retail stores throughout the United States, Canada, Australia, Austria, Denmark, Finland, France, Germany, Ireland, Italy, New...
. The Game Trade-Ins were located in over 600 Best Buy Stores in the U.S.
On November 12, 2010, the first "Connected" Best Buy will open in South Charleston, West Virginia. The "Connected" store is the first of many prototype stores that are being tested in select stores in the Pittsburgh and Las Vegas markets. These stores present more opportunities for networking and connections outside of normal electronics. Best Buy Chief Executive Brian Dunn described it as a "connected world strategy" to set Best Buy apart from other electronics retailers.
Best Buy now provides a new Buy Back Program. The program enables the customers to purchase the program at a set price, dependent on the item purchased and over time sell the item back to Best Buy at a set cost. For example, the first 6 months give 50% of the original cost back to the customer on a Best Buy gift card. Essentially the program "future proofs" the technology, allowing the consumers to get the technology they want now, and have a guaranteed amount waiting for them when it's time to upgrade.
Demographics
Customer Centricity is the name of a former business movement centered on catering to specific customer needs and behaviors. Best Buy's concept of customer centricity was configuring its stores to serve the needs of the particular customer segments that predominated in the area of each store. Some of the ways thattypes of store signage, fixtures, lighting and even uniforms. One of the things the company did for some segments was to create a personal shopping assistant, so that a customer could call and make an appointment for their shopping trip.
Best Buy exclusive brands
- Insignia - Focuses on discount electronic equipment such as HDTVs, Blu-ray players, home theater systems, digital imaging and GPS devices. It's the company's signature house brand that competes with more well known brand names.
- Dynex - Focuses on discount electronic and computer equipment such as HDTVs, Blu-ray players, storage media, data and power cables, webcams, and office supplies. It's the company's lower-end house brand.
- Init - Focuses on storage products such as media storage, equipment bags, totes and furniture for home theaters.
- Geek SquadGeek SquadThe Geek Squad is a subsidiary of the Best Buy Company and is based in Richfield, Minnesota. It was originally founded on June 16, 1994 by Robert Stephens. The company offers various computer-related services and accessories for residential and commercial clients...
- Focuses on repairing old computers and setting up new computers with various software and hardware upgrades. - RocketFish - Focuses on cables primarily used with home theater installation and setup as well as on computer and gaming accessories.
- RocketFish Gaming - Gaming Division of RocketFish
- RocketFish Mobile - Focuses on quality cases, gel skins, clips and chargers for cell phones, GPS, and other select products.
- Platinum Cases - Focuses on quality cases and belt clips for BlackBerry and Android Cell Phones. Manufactured by Seidio.
- vpr Matrix (discontinued) - Focused on personal computers and accessories including desktops, notebooks and computer monitors.
Corporate sponsorships
- Best Buy sponsors the Minnesota TwinsMinnesota TwinsThe Minnesota Twins are a professional baseball team based in Minneapolis, Minnesota. They play in the Central Division of Major League Baseball's American League. The team is named after the Twin Cities area of Minneapolis and St. Paul. They played in Metropolitan Stadium from 1961 to 1981 and the...
, Chicago White SoxChicago White SoxThe Chicago White Sox are a Major League Baseball team located in Chicago, Illinois.The White Sox play in the American League's Central Division. Since , the White Sox have played in U.S. Cellular Field, which was originally called New Comiskey Park and nicknamed The Cell by local fans...
, Boston Red SoxBoston Red SoxThe Boston Red Sox are a professional baseball team based in Boston, Massachusetts, and a member of Major League Baseball’s American League Eastern Division. Founded in as one of the American League's eight charter franchises, the Red Sox's home ballpark has been Fenway Park since . The "Red Sox"...
, Los Angeles Angels, Los Angeles DodgersLos Angeles DodgersThe Los Angeles Dodgers are a professional baseball team based in Los Angeles, California. The Dodgers are members of Major League Baseball's National League West Division. Established in 1883, the team originated in Brooklyn, New York, where it was known by a number of nicknames before becoming...
, Atlanta BravesAtlanta BravesThe Atlanta Braves are a professional baseball club based in Atlanta, Georgia. The Braves are a member of the Eastern Division of Major League Baseball's National League. The Braves have played in Turner Field since 1997....
, and Houston AstrosHouston AstrosThe Houston Astros are a Major League Baseball team located in Houston, Texas. They are a member of the National League Central division. The Astros are expected to join the American League West division in 2013. Since , they have played their home games at Minute Maid Park, known as Enron Field...
of Major League BaseballMajor League BaseballMajor League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...
. - Best Buy also sponsors the "Kiss Cam" at Busch StadiumBusch StadiumBusch Stadium is the home of the St. Louis Cardinals, of MLB...
for St. Louis CardinalsSt. Louis CardinalsThe St. Louis Cardinals are a professional baseball team based in St. Louis, Missouri. They are members of the Central Division in the National League of Major League Baseball. The Cardinals have won eleven World Series championships, the most of any National League team, and second overall only to...
games. - Best Buy was the jersey sponsor for MLSMajor League SoccerMajor League Soccer is a professional soccer league based in the United States and sanctioned by the United States Soccer Federation . The league is composed of 19 teams — 16 in the U.S. and 3 in Canada...
team Chicago Fire from 2008-2010. - Best Buy is sponsor Premier League team Everton F.C.Everton F.C.Everton Football Club are an English professional association football club from the city of Liverpool. The club competes in the Premier League, the highest level of English football...
pitch-side advertisements - Best Buy sponsors the Richard Petty Motorsports #43 Ford Fusion driven by A. J. AllmendingerA. J. AllmendingerAllmendinger again failed to qualify for the 2008 Daytona 500. After three failures to qualify in 2 attempts , he was replaced by veteran driver Mike Skinner on a temporary basis. Allmendinger returned to the Cup series at Talladega...
in the NASCARNASCARThe National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
Sprint Cup Series. - Best Buy sponsors the Vancouver CanucksVancouver CanucksThe Vancouver Canucks are a professional ice hockey team based in Vancouver, :British Columbia, Canada. They are members of the Northwest Division of the Western Conference of the National Hockey League . The Canucks play their home games at Rogers Arena, formerly known as General Motors Place,...
of the National Hockey LeagueNational Hockey LeagueThe National Hockey League is an unincorporated not-for-profit association which operates a major professional ice hockey league of 30 franchised member clubs, of which 7 are currently located in Canada and 23 in the United States...
which also include a high scale box called the Best Buy Club.
Expansion plans
During this expansion Best Buy will also launch dozens more Geek Squad and Best Buy Mobile stand alone stores in prevailing markets. The company has experimented with Magnolia Home Theatre stand alone stores in demographics just outside New York City, Chicago, Dallas, and Orlando, the stores have taken in more than $300 million dollars in the first year of operation combined. With the fall of Circuit City nearly 10% of the market place was up for grabs with Best Buy snatching most of it but not without Walmart far behind.Best Buy's Sales to Customers by Geographical Regions in 2009
| Geographic Region | Total Sales ( in millions) |
| United States | 35,070 |
| Europe | 3,205 |
| Canada | 5,174 |
| People's Republic of China | 1,558 |
| Other Area | 8 |
As of June 2011 there are currently eight Best Buy stores open in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, the first to open was in Thurrock
Lakeside Shopping Centre
The Lakeside Shopping Centre is a large out-of-town shopping centre located in West Thurrock, in the borough of Thurrock, Essex just beyond the eastern boundary of Greater London...
, with Croydon
Croydon
Croydon is a town in South London, England, located within the London Borough of Croydon to which it gives its name. It is situated south of Charing Cross...
, Derby
Derby
Derby , is a city and unitary authority in the East Midlands region of England. It lies upon the banks of the River Derwent and is located in the south of the ceremonial county of Derbyshire. In the 2001 census, the population of the city was 233,700, whilst that of the Derby Urban Area was 229,407...
, Hayes, Liverpool
Liverpool
Liverpool is a city and metropolitan borough of Merseyside, England, along the eastern side of the Mersey Estuary. It was founded as a borough in 1207 and was granted city status in 1880...
, Merry Hill
Merry Hill Shopping Centre
Westfield Merry Hill is a shopping centre in Brierley Hill near Dudley, West Midlands, England. It was developed between 1985 and 1990, with several expansion and renovation projects taking place since. The original developers and owners were Richardson Developments but the Centre has had a number...
and Southampton
Southampton
Southampton is the largest city in the county of Hampshire on the south coast of England, and is situated south-west of London and north-west of Portsmouth. Southampton is a major port and the closest city to the New Forest...
following, with the most recently opened stores in Nottingham
Nottingham
Nottingham is a city and unitary authority in the East Midlands of England. It is located in the ceremonial county of Nottinghamshire and represents one of eight members of the English Core Cities Group...
and Rotherham
Rotherham
Rotherham is a town in South Yorkshire, England. It lies on the River Don, at its confluence with the River Rother, between Sheffield and Doncaster. Rotherham, at from Sheffield City Centre, is surrounded by several smaller settlements, which together form the wider Metropolitan Borough of...
. On 7 November 2011, it was announced that all 11 stores in the UK will be closed, due to huge losses of close to £140m.
On February 22, 2011, Best Buy closed all nine stores in the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
without prior notice to customers and media. According to the announcement on the official website of Best Buy China, it will continue to invest in electronics retail markets in China. The investment project includes opening more than 50 'Five Star Electronic' branded stores across the country.
Warranty controversy
In 2000, two Florida consumers brought a lawsuit against Best Buy, alleging that the company engaged in fraudulent business practices related to the sale of extended warrantiesExtended warranty
An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers. The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer. Extended warranties cost extra and for a...
(or, more accurately, service plan
Service plan
A service plan is a contract to purchasers of products for an additional fee. While service plans resemble extended warranties, there are several important differences between the two, often cited by retailers that sell them.-Differences from warranties:...
s). The suit claimed that Best Buy employees had misrepresented the manufacturer's warranty
Warranty
In business and legal transactions, a warranty is an assurance by one party to the other party that specific facts or conditions are true or will happen; the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed.In real estate transactions, a...
in order to sell the chain's own Product Service/Replacement Plan and that Best Buy had "entered into a corporate-wide scheme to institute high-pressure sales techniques involving the extended warranties" and that the retailer used "artificial barriers to discourage consumers who purchased the 'complete extended warranties' from making legitimate claims." Best Buy ultimately settled for $200,000, but admitted no wrongdoing. In 2009, a class action lawsuit was launched against Best Buy. The lawsuit addressed the same issue. Several consumers were outraged by the sales tactics allegedly used by Best Buy employees to sell their Performance Service Plans. They were supposedly misled into thinking that the plan covered all types of damages and that they would receive a new product if they were to bring the product back to the store within the service period. According to the lawsuit, sales associates allegedly failed to disclose the details of the service plan. The results of the lawsuit are still pending, and it is unknown whether the misunderstanding was a result of misinformation given out by sales associates, or by a lack of understanding on the part of the customer.
Pricing controversies
In the second quarter of 2007, Connecticut State Attorney General Richard Blumenthal ordered an investigation into Best Buy's use of an in-store website alleged to have misled customers on item sales prices. In December 2007, the Los Angeles TimesLos Angeles Times
The Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....
reported on the same issue in which some customers claimed they thought they were surfing the internet version of bestbuy.com at an in-store kiosk only to learn that the site reflected in-store prices only. In response, Best Buy spokesperson Sue Busch indicated the in-store kiosks were not intended for price-match purposes and rather a means to navigate in-store availability. Since the initial investigation, a banner was placed on the in-store site to make its customers more aware of the difference.
Similar pricing errors occurred in July 2009, when the Palm Pre
Palm Pre
The Palm Pre is a multimedia smartphone designed and marketed by Palm with a multi-touch screen and a sliding keyboard. The smartphone was the first to use Palm's Linux based mobile operating system, webOS...
was mistakenly sold for $99.99 (versus the retail of $199.99), and Best Buy honored some of the sales. Best Buy reserves the right to cancel the orders of errors on its site.
Analog televisions
In April 2008, the U.S. Federal Communications CommissionFederal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...
(FCC) fined Best Buy $280,000 for not alerting customers that the analog television
Analog television
Analog television is the analog transmission that involves the broadcasting of encoded analog audio and analog video signal: one in which the message conveyed by the broadcast signal is a function of deliberate variations in the amplitude and/or frequency of the signal...
s they sold would not receive over-the-air stations after the digital transition
Digital television transition
The digital television transition is the process in which analog television broadcasting is converted to and replaced by digital television. This primarily involves both TV stations and over-the-air viewers; however it also involves content providers like TV networks, and cable television...
on June 12, 2009. Best Buy is challenging this ruling by the FCC saying it was and is in compliance with current FCC regulations pertaining to the digital transition.
Environmental issues
Best Buy was one of several large companies named by GreenpeaceGreenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
in 2007 for purchasing raw materials or manufactured products derived thereof from logging
Logging
Logging is the cutting, skidding, on-site processing, and loading of trees or logs onto trucks.In forestry, the term logging is sometimes used in a narrow sense concerning the logistics of moving wood from the stump to somewhere outside the forest, usually a sawmill or a lumber yard...
companies that in the opinion of Greenpeace contribute to unethical deforestation
Deforestation
Deforestation is the removal of a forest or stand of trees where the land is thereafter converted to a nonforest use. Examples of deforestation include conversion of forestland to farms, ranches, or urban use....
of taiga
Taiga
Taiga , also known as the boreal forest, is a biome characterized by coniferous forests.Taiga is the world's largest terrestrial biome. In North America it covers most of inland Canada and Alaska as well as parts of the extreme northern continental United States and is known as the Northwoods...
in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
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Since that time, however, Best Buy launched what it calls Greener Together to increase the energy efficiency of its products as well as reduce consumer waste through more recyclable packaging and proper disposal of certain electronic components.