Best Buy 2008 Annual Report Download - page 17

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home office and services. Our China stores do not carry centers in Washington and California or the U.S. Best Buy
entertainment software. Appliances includes major distribution center in California. All inventory is bar-coded
appliances, air conditioners, small electrics and and scanned to ensure accurate tracking. Merchandise is
housewares. The consumer electronics revenue category delivered to stores an average of three times per week
consists of video and audio products, including televisions, pursuant to an in-house distribution system.
digital cameras, MP3 players and accessories. The home
office revenue category includes desktop and notebook International Segment
computers, mobile phones, traditional telephones and Our Canada stores’ merchandise is shipped directly from
accessories. The services revenue category includes our suppliers to our distribution centers in British Columbia
computer support services. and Ontario. Our Canada stores are dependent upon the
distribution centers for inventory storage and shipment of
Distribution most merchandise. However, in order to meet release
Domestic Segment dates for selected products and to improve inventory
management, certain merchandise is shipped directly to
Generally, U.S. Best Buy stores’ merchandise, except for our stores from manufacturers and distributors. All
major appliances and large-screen televisions, is shipped inventory is bar-coded and scanned to ensure accurate
directly from manufacturers to our distribution centers tracking. In addition, a computerized inventory
located in California, Georgia, Indiana, Minnesota, New replenishment program is used to manage inventory levels
York, Ohio, Oklahoma and Virginia. Major appliances at each store. Our Canada stores typically receive product
and large-screen televisions are shipped to satellite shipments twice per week, with additional shipments during
warehouses in each major market. U.S. Best Buy stores are periods of high sales volume. Contract carriers ship
dependent upon the distribution centers for inventory merchandise from the distribution centers to stores.
storage and shipment of most merchandise. However, in
order to meet release dates for selected products and to We receive our Five Star stores’ merchandise at more than
improve inventory management, certain merchandise is 50 distribution centers and warehouses located throughout
shipped directly to our stores from manufacturers and the Five Star retail chain, the largest of which is located in
distributors. All inventory is bar-coded and scanned to Nanjing, Jiangsu province. Our Five Star stores are
ensure accurate tracking. In addition, a computerized dependent upon the distribution centers for inventory
inventory replenishment program is used to manage storage and shipment of most merchandise. Most
inventory levels at each store. On average, U.S. Best Buy merchandise is fulfilled directly to customers through our
stores receive product shipments two or three times per distribution centers and warehouses.
week, with additional shipments during periods of high Our China Best Buy store’s merchandise is shipped directly
sales volume. Contract carriers ship merchandise from the from our suppliers to our distribution center in Shanghai.
distribution centers to stores. Generally, online Our China Best Buy store is dependent upon the
merchandise sales are either picked up at U.S. Best Buy distribution center for inventory storage and shipment of
stores or fulfilled directly to customers through our most merchandise. However, in order to meet release
distribution centers. dates for selected products and to improve inventory
We receive and warehouse Pacific Sales stores’ management, certain merchandise is shipped directly to
merchandise at a distribution center in California. All our store from manufacturers and distributors. In certain
inventory is bar-coded or marked with vendor serial circumstances, merchandise is shipped directly to our
numbers to ensure accurate tracking. In addition, a customers from manufacturers and distributors. Our China
computerized inventory replenishment program is used to Best Buy store typically receives product shipments three to
manage inventory levels at each store. Most merchandise four times per week, with additional shipments during
is fulfilled directly to customers through our distribution periods of high sales volume.
center.
We receive and warehouse Magnolia Audio Video stores’
merchandise at either Magnolia Audio Video distribution
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