Best Buy 2008 Annual Report Download - page 45

Note: During fiscal 2008, we relocated eight U.S. Best Buy stores. No other store in the Domestic segment was relocated during fiscal
2008. At the end of fiscal 2008, we operated 923 U.S. Best Buy stores in 49 states, the District of Columbia and Puerto Rico; 19 Pacific
Sales stores in California; 13 Magnolia Audio Video stores in California, Oregon and Washington; nine Best Buy Mobile stores in New
York and North Carolina; and seven U.S. Geek Squad stores in California, Colorado, Georgia, Minnesota and Texas.
The following table reconciles Domestic stores open at the beginning and end of fiscal 2007:
Total Total
Stores at Stores at
End of Stores Stores Stores End of
Fiscal 2006 Opened Acquired Closed Fiscal 2007
U.S. Best Buy 742 80 — — 822
Pacific Sales — — 14 — 14
Magnolia Audio Video 20 — — — 20
Best Buy Mobile(1) —5—— 5
U.S. Geek Squad 12 — — — 12
Total Domestic stores 774 85 14 — 873
(1) Fiscal 2007 store counts have been adjusted to reflect Best Buy Mobile stand alone-stores test marketed in fiscal 2007.
Note: During fiscal 2007, we relocated 13 U.S. Best Buy stores. No other store in the Domestic segment was relocated during fiscal
2007. At the end of fiscal 2007, we operated 822 U.S. Best Buy stores in 49 states and the District of Columbia; 14 Pacific Sales stores
in California; 20 Magnolia Audio Video stores in California, Oregon and Washington; five Best Buy Mobile stores in New York; and
12 U.S. Geek Squad stores in California, Colorado, Georgia, Minnesota, Texas and Wisconsin.
in fiscal 2007 and added to the overall comparable store
Fiscal 2007 Results Compared With Fiscal 2006
sales increase.
In fiscal 2007, our Domestic segment’s operating income
Our Domestic segment’s consumer electronics revenue
was $1.9 billion, or 6.1% of revenue, compared with
category posted an 8.3% comparable store sales gain,
$1.6 billion, or 5.8% of revenue, in fiscal 2006. The
driven by sales of flat-panel televisions and MP3 players
Domestic segment’s operating income rate in fiscal 2007
and accessories, partially offset by declines in tube and
benefited from revenue gains and a decrease in the SG&A
projection televisions. Comparable store sales gains from
rate, partially offset by a decrease in the gross profit rate.
flat-panel television unit-volume growth and increased
Our Domestic segment’s revenue in fiscal 2007 increased screen size were somewhat muted by declines in average
13% to $31.0 billion. The addition of new stores selling prices.
accounted for nearly one-half of the revenue increase in
Our Domestic segment’s home office revenue category
fiscal 2007; a 4.1% comparable store sales gain
recorded a 1.2% comparable store sales decrease, driven
accounted for approximately three-tenths of the revenue
primarily by declines in desktop computers and printers.
increase; the inclusion of an extra week of business in
The comparable store sales declines were partially offset
fiscal 2007 accounted for just over one-tenth of the
by growth in notebook computers, reflecting continued
revenue increase; and the remainder of the revenue
consumer demand for portable technology.
increase was due primarily to the acquisition of Pacific
Sales and income related to our recognition of additional A 2.4% comparable store sales gain in our Domestic
gift card breakage from prior years. segment’s entertainment software revenue category was
due primarily to sales growth in video gaming, driven by
Our Domestic segment’s comparable store sales gain in
the increased affordability of existing platforms, as well as
fiscal 2007 benefited from a higher average transaction
the launches of Sony Playstation 3 and Nintendo Wii. The
amount driven by the continued growth in higher-ticket
comparable store sales gains were partially offset by
items, including flat-panel televisions and notebook
continued declines in sales of new music and movie
computers. Also contributing to the fiscal 2007
releases.
comparable store sales gain was an increase in online
purchases, as we continued to add features and A 1.7% comparable store sales decline in our Domestic
capabilities to our Web sites. Revenue from our Domestic segment’s appliances revenue category was driven
segment’s online operations increased approximately 39% primarily by declines in sales of small electrics.
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