Best Buy 2007 Annual Report Download - page 13

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11
Best Buy 2007 Annual Report |
Talent and culture We will continue to seek out local talent and
market expertise as we grow internationally. We believe that these local
talented leaders understand their markets and customers, and are an
integral part of our international growth success. Similarly, the cultural fit
of a potential acquisition is one of our key criteria.
International expansion
for long-term growth
We began our international expansion in fiscal 2002
with the acquisition of the Canadian market leader,
Future Shop. Subsequently, we have launched the
Best Buy brand in Canada and successfully grown the
combined market share to over 30 percent. The
Canadian team has dedicated itself to understanding
the unique customers served by its distinct brands—and
how to grow both. The lessons learned along the way
are serving us well as we pursue the same strategy
in China.
In fiscal 2007, we acquired the third-largest appliance
and consumer electronics retailer in China, Five Star. As
with other recent acquisitions, we were very impressed
with the management team and its passion for serving
its customers. We have also launched the Best Buy
brand in China and are testing different operating models
all aimed at improving the customer experience.
As we evaluate other international opportunities, we
look for sizeable and growing economies with a spirit
of optimism. Regardless of where we go, understanding
the customer needs, wants and desires in that market
will always be our beginning point. We believe that the
insights that our local engaged employees — those closest
to the customer—bring to work every day give us the
basis for better solving customer needs. That is what
customer centricity is based on—and that is universal.
81%
United States
19%
International
Total retail square footage
Future Shop, Canada 2.5
Best Buy, Canada 1.2
Five Star, China 4.2
Best Buy, China 0.1
United States 34.0
(square feet in millions)
3%
6%
10%