Best Buy 2007 Annual Report Download - page 23

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Magnolia Audio Video stores are typically managed by a
store manager, an audio/video sales manager and, if the
store contains mobile products, a mobile electronics sales
manager. Magnolia Audio Video stores are generally open
73 hours per week, seven days a week. Depending on an
individual store’s volume and product offerings, store
staffing includes six to 18 commissioned sales personnel
and one to three hourly personnel. Corporate management
for Magnolia Audio Video stores centrally controls
advertising, merchandise purchasing and pricing, as well as
inventory policies.
Pacific Sales stores are typically managed by a store
manager who also sells appliances. Pacific Sales stores are
generally open 40 hours per week, five days a week.
Depending on an individual store’s volume and product
offerings, store staffing includes approximately 10
noncommissioned sales personnel and approximately five
hourly sales support personnel. Corporate management for
Pacific Sales stores centrally controls advertising,
merchandise purchasing and pricing, as well as inventory
policies.
International Segment
Canada store operations are organized to support two
brands, each headed by a vice president. Each vice
president has national management that closely monitor
store operations and meets regularly with store managers to
review management and staff training programs, customer
feedback and requests, store operating performance and
other matters. Meetings involving store management,
product managers, and advertising, financial and
administrative staff, as well as senior management, are held
quarterly to review operating results and to establish future
objectives.
Canada stores are generally open 60 to 75 hours per
week, seven days a week. An average Future Shop store is
staffed by a general manager, an operations manager, one
to four department managers and 48 to 95 sales
associates, as well as part-time sales associates. An average
Canada Best Buy store is staffed with a general manager;
assistant managers for operations, merchandising, inventory
and sales; and 80 to 110 sales associates, including full-
time and part-time sales associates. The number of sales
associates is dependent upon store size and sales volume.
Canada stores use a standardized operating system. The
operating system includes procedures for inventory
management, transaction processing, customer relations,
store administration, staff training and performance
appraisals, as well as merchandise display. Advertising,
merchandise purchasing and pricing, and inventory policies
are centrally controlled.
Five Star stores are generally open 77 to 84 hours per
week, 7 days a week. The sales staff at Five Star stores
consists primarily of employees of our vendors. A typical
Five Star store is staffed by 50 to 200 vendor employees
who sell products; a general manager; six to 10 department
managers; and 27 to 100 sales associates, as well as part-
time sales associates. Corporate management at Five Star
centrally controls advertising, merchandise purchasing and
pricing and inventory policies for major brand products,
while individual regions control these operations for local
brands. Meetings involving store management and
corporate management are held on a regular basis to
review operating results and establish future objectives.
Our China Best Buy store employs an operating model
similar to our U.S. Best Buy and Canada Best Buy stores.
Our China Best Buy store is staffed with a general
manager; assistant managers for operations,
merchandising, inventory and sales; and approximately 340
sales associates, including full-time and part-time sales
associates. Advertising, merchandise purchasing and
pricing, and inventory policies for our China Best Buy store
are centrally controlled by corporate management.
Meetings involving store management and corporate
management are held on a regular basis to review
operating results and establish future objectives.
Merchandise
Domestic Segment
U.S. Best Buy stores offer merchandise in four product
groups: consumer electronics, home-office, entertainment
software and appliances. Consumer electronics, the largest
product group in fiscal 2007 based on revenue, consists of
video and audio products and services. Video products
include televisions, digital cameras, home theater system
installation, DVD players, digital camcorders and
accessories. Audio products include MP3 players, home
theater audio systems, mobile electronics including car
stereo and satellite radio products, and related accessories.
The home-office product group includes notebook and
desktop computers, computer support services, telephones,
networking and accessories. Entertainment software
products include DVD movies, video game hardware and
software, CDs and computer software. The appliances
product group includes major appliances as well as vacuum
cleaners, small electrics, housewares and services.