Best Buy 2001 Annual Report Download - page 13

Best Buy Co., Inc.
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Similarly, we believe that, as the largest U.S. retailer
of packaged entertainment, we can play a lead role in
shaping how all forms of media are distributed. W e plan to
be a leader in offering the products and services consumers
want most, when they want them and where they want them.
Ex panding Internationally
As we strive toward our vision of meeting consumers at the
intersection of technology and life, we must look beyond
the borders of the United States. In fiscal 2001, we took
the first step in our international expansion and began
planning to open Best Buy stores in Canada by fall 2002.
The Canadian marketplace is attractive because of
the sizeable population, high median incomes, strong
annual spending in consumer electronics (estimated at
$11 billion) and limited competition in our sector.
O ur Canadian Best Buy stores will measure 30,000 or
45,000 square feet, depending on the needs of the
location.
To facilitate this growth, we have named as head of our
Canadian operations Thomas Healy, a senior vice
president and a 10-year Best Buy veteran. He is charged
with building a team to establish Best Buy as the leading
specialty retailer in Canada, while leveraging the processes
and competencies of the Company. In the next three or
four fiscal years, we envision opening a total of 60 to
65 stores throughout Canada.
Launching our Internet Strategy
Consumers are using the Internet at increasing rates.
They are excited by the promise that the Internet will
enhance the quality of their lives by providing new methods
to communicate, faster access to information, more exciting
entertainment experiences and convenient sources of
goods and services. Best Buy has embraced the Internet
as a new medium with which to extend our traditional
retailing strengths and as a platform for delivering future
digital entertainment services.
W e launched BestBuy.com in June 2000, and it has quickly
become one of the most visited e-commerce sites in the
nation. The site offers a rich resource for learning about and
purchasing Best Buy’s principal products, including consumer
electronics, computers and peripherals, music, movies,
software and games. BestBuy.com also is recognized as
one of the nation’s “stickiest” sites in terms of page views
and time spent by each visitor.
A key to BestBuy.com’s success is its integration with our
traditional retail business. W e believe that this “clicks
and mortar” approach will benefit consumers by offering
them a consistent, synchronized experience across our
stores and Internet channels, while availing them of
the unique attributes of each. Consumers also can have
choices regarding how to learn about, purchase and
obtain delivery of our products. For example, we offer
BestBuy.com W ebStationsTM in all of our stores, which in
many cases expand the assortments otherwise available.
W e allow customers to pick up and return their online
purchases in our stores. O ur research indicates that a
Best Buy Stores