Best Buy 2003 Annual Report Download - page 18
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Gaming 9% 6%
Other 18% 18%
Total 100% 100%
Operations
Sam Goody Mall, Suncoast and Sam Goody Rural stores are typically managed by a store manager and an assistant manager. Media
Play stores are typically managed by a general manager, an assistant general manager and three to five department managers. Most
Musicland stores are open 65 to 80 hours per week, seven days a week, depending on mall hours. Store staffing levels fluctuate with
the size of the store and anticipated sales volume. Advertising, merchandise buying and pricing, and inventory policies for Musicland
stores are centrally controlled.
Distribution
The majority of Musicland’s inventory is shipped from its distribution center located in Indiana. From time to time, in order to meet
release dates for selected products and to improve inventory management, certain merchandise is shipped directly to the stores from
manufacturers and distributors.
Seasonality
Similar to many retailers, Musicland’s business is seasonal. Revenue and earnings are typically greater during the second half of the
fiscal year, which includes the holiday selling season.
Competition
Musicland’s industry is highly competitive. Increased downloading of entertainment and computer software directly via the Internet,
the progression of CD recording technology and slumping music sales all have led to more intense competitive conditions. Musicland
retail stores also compete with specialty retail chains, mass merchants, bookstores and consumer electronics stores, as well as video
rental stores, mail order clubs and various Internet−based retailers.
Our Employees
At the end of fiscal 2003, we employed approximately 98,000 full−time, part−time and seasonal employees in our consolidated
operations. This included 87,000 full−time, part−time and seasonal employees in continuing operations, and approximately 11,000
full−time, part−time and seasonal employees at Musicland. There are currently no collective bargaining agreements covering any of
our employees with the exception of unions that represent hourly employees at 10 Musicland stores. We have not experienced a strike
or work stoppage.
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