Best Buy 1999 Annual Report Download - page 8

EXPANDING OUR NATIONAL PRESENCE
One of the most important initiatives for the upcoming
fiscal year is an aggressive expansion strategy that will produce
approximately 45 new Best Buy stores across the country.
Our current financial position provides the working capital
to expand into the new markets of San Francisco, San Diego
and Sacramento, California; as well as Norfolk and Richmond,
Virginia. These stores, along with openings in many existing
markets, will enhance our level of service and national presence.
To support our increased expansion plans, we will be increas-
ing training for employee and management development at
all levels.
Included in our expansion strategy is a plan to test a new small-
market store. These stores are designed to serve consumers
in communities with populations less than 200,000. While
slightly smaller in size than current stores (30,000 versus 45,000
square feet), these small-market stores will offer a meaningful
merchandise selection from all four of our main business
segments and knowledgeable service consistent with the
standards established in our existing, larger locations.
THE CHANGING RETAIL LANDSCAPE
The future, however, holds far more for Best Buy than an
increased number and format of retail stores. The coming year
will bring many opportunities that we must fully embrace in
order to maintain our momentum and remain the customer’s
choice for purchasing new technology in the next century.
Our goal is to complement our existing retail franchise and
the brand awareness it has achieved with the evolving retail
marketplace. A prime example is implementing an Internet
business strategy. We believe this will become an increasingly
important avenue for developing customer loyalty. As more
aspects of daily life are accommodated over the Internet, the
potential of our Web site (www.bestbuy.com) is boundless.
Having launched an online music store and added a full
selection of DVD software, Best Buy is positioning itself to
bring more products and services to our customers.
THE DIGITAL REVOLUTION
The digital age brings new opportunities for us to provide
consumers with solutions they need to integrate new product
technologies into their lives. Our vision is to be “at the
intersection of Technology and Life.” Our new stores are
merchandised to demonstrate the benefits of emerging
technology products to our customers.
As the consumers’ preferred place to shop for new technologies,
such as DVD, Best Buy has emerged as the industry leader. We
are the number one retailer of DVD products based on overall
market share. DVD, digital television (DTV), digital cameras and
camcorders, digital phones and scanners are all expected to
provide increasing opportunities for our industry. We are
confident we can lead the industry in selling tomorrow’s
complex products. DTV represents the greatest opportunity,
and we are committed to becoming the consumers’ destination
of choice for DTV.