Profile: Best Buy Co Inc (BBY.N)
9 Jul 2014
Best Buy Co., Inc., incorporated on October 20, 1996, is a multinational, multichannel retailer of technology products, including tablets and computers, televisions, mobile phones, large and small appliances, entertainment products, digital imaging and related accessories. The Company also offers technology services including technical support, repair and installation under the Geek Squad brand. The Company operates e-commerce operations, retail stores and call centers and conduct operations under a variety of names, such as Best Buy (BestBuy.com, BestBuy.ca), Best Buy Mobile, Five Star, Future Shop (FutureShop.ca), Geek Squad, Magnolia Audio Video and Pacific Sales. The Company operates in two segments: Domestic and International. The Domestic segment is comprised of all operations within the U.S. and its territories. The International segment is comprised of all operations outside the U.S. and its territories. On June 26, 2013, it sold 50% ownership interest in Best Buy Europe to CPW. On February 1, 2014, the Company sold mindSHIFT Technologies, Inc. (mindSHIFT).
U.S. Best Buy stores and the related online channel have offerings in six revenue categories: Consumer Electronics, Computing and Mobile Phones, Entertainment, Appliances, Services and Other. Consumer Electronics consists of video and audio products. Video products include televisions, e-Readers, navigation products, digital cameras and accessories, digital camcorders and accessories and digital versatile disk (DVD) and Blu-ray players. Audio products include moving picture experts group layer-3 audio (MP3) players and accessories, home theater audio systems and components, musical instruments and mobile electronics, such as car stereo and satellite radio products. The Computing and Mobile Phones revenue category includes notebook and desktop computers, tablets, monitors, mobile phones and related subscription service commissions, hard drives and other storage devices, networking equipment, office supplies and other related accessories, such as printers. The Entertainment revenue category includes video gaming hardware and software, DVDs, Blu-rays, compact disks (CDs), digital downloads and computer software. The Appliances revenue category includes both large and small appliances and kitchen and bath fixtures, including faucets, sinks, toilets and bathtubs. The Services revenue category consists primarily of extended warranty service contracts, technical support, product repair, delivery and installation. The Other revenue category includes non-core offerings such as snacks and beverages. Most merchandise for its U.S. Best Buy, U.S. Best Buy Mobile, Magnolia Audio Video and Pacific Sales stores is shipped directly from manufacturers to its distribution centers or warehouses located throughout the United States In order to meet release dates for certain products, merchandise may be shipped directly to its stores from suppliers.
The International segment is comprised of all Canada store, online and call center operations, operating under the brand names Best Buy, Best Buy Mobile, Cell Shop, Connect Pro, Future Shop and Geek Squad, all China store and call center operations, operating under the brand names Five Star and Best Buy Mobile, and all Mexico store operations operating under the brand names Best Buy, Best Buy Express and Geek Squad. In addition, corporate management performs support capabilities. Similar to its United States Best Buy stores, all Canada stores use a standardized operating system that includes procedures for inventory management, transaction processing, customer relations, store administration, staff training and merchandise display. The retail operations include two principal store brands. Future Shop stores have predominantly commissioned sales associates, whereas employees in Best Buy branded stores in Canada, like employees in United States Best Buy stores, are noncommissioned. Its Five Star stores primarily utilize vendor employees and full-time sales associates to sell its products. Corporate retail management generally controls advertising, merchandise purchasing and pricing, and inventory policies, although management for individual regions within its Five Star brand may vary these operations to adapt to local customer needs. Its stores in Mexico employ an operating model similar to that used in its United States Best Buy stores.
In Canada, the Future Shop and Best Buy branded stores have offerings in Consumer Electronics, Computing and Mobile Phones, Entertainment, Services and Other, and at Future Shop only, Appliances. Although Future Shop and Best Buy branded stores in Canada offer similar products, there are differences in brands and depth of selection. Further, Geek Squad services are only available in the Best Buy branded stores, with Future Shop's service offerings branded as Connect Pro. In China, its Five Star stores have offerings in four revenue categories: Appliances, Consumer Electronics, Computing and Mobile Phones and Services. The products and services in these revenue categories are similar to those of its Domestic segment. Its stores in Mexico have offerings in six revenue categories: Consumer Electronics, Computing and Mobile Phones, Entertainment, Appliances, Services and Other, with products and services similar to those of its Domestic segment.
Best Buy Co Inc
7601 PENN AVE SOUTH
RICHFIELD MN 55423