Best Buy 2008 Annual Report Download - page 13

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In fiscal 2003, we acquired Geek Squad Inc. Geek Squad stores in order to capitalize on the high-end segment of
provides residential and commercial computer repair, the U.S. appliance market.
support and installation services. We acquired Geek In fiscal 2007, we developed the Best Buy Mobile concept
Squad to further our plans of providing technology support through a management consulting agreement with The
services to customers. Geek Squad service is available in Carphone Warehouse Group PLC (‘‘CPW’’) and test
all Best Buy stores, as well as in seven stand-alone stores marketed five stand-alone stores located in New York. Best
in the U.S. Our goal is to build Geek Squad into one of Buy Mobile seeks to satisfy the needs of all our customer
the largest multi-national providers of residential and lifestyle groups by providing a comprehensive assortment
commercial computer repair and support and installation of mobile phones, accessories and related services offered
services. by experienced sales personnel in 181 U.S. Best Buy
In fiscal 2005, we opened our first Magnolia Home stores, as well as nine stand-alone stores located in New
Theater store-within-a-store experience in a U.S. Best Buy York and North Carolina at the end of fiscal 2008. During
store. We believe Magnolia Home Theater — with its the next 18 months, we plan to add the Best Buy Mobile
high-end brands, home-like displays and specially trained store-within-a-store experience to the majority of U.S. Best
employees — offers a unique solution for our customers. Buy stores.
The Magnolia Home Theater store-within-a-store In fiscal 2008, we acquired Speakeasy. Speakeasy
experience was in 346 U.S. Best Buy stores at the end of provides broadband, voice, data and information
fiscal 2008. technology services. We believe our acquisition of
In fiscal 2005, we also began converting U.S. Best Buy Speakeasy will generate synergies by providing new
stores to our customer centricity operating model. Stores technology solutions for our existing and future customers.
operating under the customer centricity model offer At March 1, 2008, we operated 923 U.S. Best Buy stores
variations in product assortments, staffing, promotions and in 49 states, the District of Columbia and Puerto Rico that
store design, and are focused on key customer segments. averaged approximately 39,700 retail square feet.
The segmented stores tailor their store merchandising, Collectively, U.S. Best Buy stores totaled approximately
staffing, marketing and presentation to address specific 36.7 million retail square feet at the end of fiscal 2008,
customer groups. Originally, these customer groups or about 76% of our total retail square footage. In fiscal
included affluent professional males, young entertainment 2008, our U.S. Best Buy stores generated average revenue
enthusiasts who appreciate a digital lifestyle, upscale of approximately $37.6 million per store.
suburban mothers, families who are practical technology
At March 1, 2008, we operated 19 Pacific Sales stores in
adopters and small businesses.
California that averaged approximately 34,000 retail
In fiscal 2007, we completed the transition of all square feet. Collectively, Pacific Sales stores totaled
remaining U.S. Best Buy stores to the customer centricity approximately 0.6 million retail square feet at the end of
operating model. Also in fiscal 2007, we evolved our fiscal 2008, or about 1% of our total retail square
customer centricity segmentation to address the needs of footage. In fiscal 2008, our Pacific Sales stores generated
customer lifestyle groups, rather than specific customer average revenue of approximately $18.7 million per store.
groups. Our stores now focus on lifestyles such as affluent
At March 1, 2008, we operated 13 Magnolia Audio Video
suburban families, trend-setting urban dwellers, and the
stores in California, Oregon and Washington that
closely knit families of Middle America.
averaged approximately 11,600 retail square feet.
In fiscal 2007, we acquired Pacific Sales. Pacific Sales Collectively, Magnolia Audio Video stores totaled
specializes in the sale of high-end kitchen appliances, approximately 0.2 million retail square feet at the end of
plumbing fixtures, home entertainment products and home fiscal 2008, or less than 1% of our total retail square
furnishings, with a focus on builders and remodelers. We footage. In fiscal 2008, our Magnolia Audio Video stores
acquired Pacific Sales to enhance our ability to grow with generated average revenue of approximately $7.2 million
an affluent customer base and premium brands using a per store.
proven and successful showroom format. Utilizing the
At March 1, 2008, we operated nine Best Buy Mobile
existing store format, we expect to increase the number of
stand-alone stores in New York and North Carolina that
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