What is Best Buy? Best Buy Reviews

Basic Introduction

Best Buy was founded in 1966 and is a consumer electronics retailer from the United States. It currently has branches in Mexico and Canada. It also had branches in China and Europe, but withdrew from these businesses in 2011 and 2012 respectively. It has more than 1,150 stores worldwide, and has more than 100 "Best Buy Express" unmanned self-service stores in airports and shopping malls in the United States.

Website Features

As the world's largest company in the home appliance retail industry, Best Buy has become one of the most famous retail brands in North America in the past 20 years. The yellow label of "Best Buy" became well-known when it opened its first large-scale shopping mall in 1983.

composition

BEST BUY Group includes BEST BUY Retail, Music Garden Group, Future Mall, Magnolia Hi-Fi, as well as Hotline Entertainment, Future Shop and Five Star Appliances.

Main Products

Including consumer electronic products (audio, video, personal portable products, communication products, photographic equipment and accessories), home office supplies (computers, digital photography, software and other peripherals), entertainment software (music, movies and software), electrical products (large household appliances, furniture, small household products).

Business characteristics

1. Single business model, continuous cost reduction

Bestbuy has created a new business model: large-scale home appliance specialty stores + chain operations, with goods displayed in warehouse-style or sample displays. This not only brings together many brands, but also makes it easier for consumers to buy and reduces operating costs.

2. Services and online transactions are the winning formula

When consumers open Bestbuy, they can easily find purchase guides for various products. Bestbuy shopping guides do not promote products and only appear when consumers need them.

3. Two-way expansion through self-construction and mergers and acquisitions

Bestbuy adopts two development methods: self-construction and mergers and acquisitions. The development of multiple stores has rapidly expanded the business circle, thereby increasing sales.

4. Close relationship with suppliers

Bestbuy adopts the model of payment first and then delivery, putting the business risk on itself, thus achieving a win-win situation among suppliers, consumers and itself.

Company History

Bestbuy began as an audio accessories store called Sound of Music. The company was founded in Minnesota in 1966 and changed its name to Best Buy in 1983.

In 1983, the company adjusted its marketing strategy and began to adopt mass marketing techniques, operating its stores under the "superstore" concept and offering a more complete product selection.

In 1989, the company abolished its commission-based sales model and introduced the self-service discount store business concept, which completely changed the company's traditional retail methods and provided consumers with more autonomy and space in the shopping process.

In fiscal 2000, the company launched its first online shopping website.

In fiscal 2001, the company acquired Magnolia Hi-Fi, a high-end audio and video retailer headquartered in Seattle, Washington, thereby gaining access to a higher-end consumer segment in the market.

In fiscal 2004, Magnolia Hi-Fi changed its name to Magnolia Audio Video. The company believes that the new name and redesigned logo better represent Magnolia Audio Video as a high-end consumer electronics retailer.

The company introduced the Best Buy brand in Canada in fiscal 2003. Both brands have been very successful in the Canadian market.

The company acquired Geek Squad in fiscal year 2003. Geek Squad provides computer support services to both residential and commercial users. The company acquired Geek Squad to further provide technical support services to customers.

In 2006, Best Buy acquired Pacific Sales Kitchen and Bath, a high-end home products retailer.

On March 28, 2015, Best Buy announced the closure of its Future stores chain in Canada; 65 of its 131 legacy locations were converted to Best Buy locations, and the remainder (primarily those in close proximity to existing Best Buys) have been permanently closed.

On March 1, 2018, the company announced that it would close 250 standalone Best Buy Mobile stores in the United States by the end of May due to low revenue.

In June 2019, the company's chairman and CEO Hubert Joly resigned and became the company's executive chairman of the board. On June 11, the company's CFO and strategic transformation officer (STO) Corie Barry became the company's new CEO.

China

In 2003, Best Buy opened its first global sourcing office in Shanghai, China.

On May 12, 2006, Best Buy officially announced to the outside world that it had completed the acquisition of Jiangsu Five Star Appliances in the form of a controlling stake. So far, the top three home appliance chain enterprises in China are: Gome, Suning and Best Buy.

In January 2007, China's first Best Buy brand store officially opened in Shanghai, China.

On February 22, 2011, Best Buy announced on its official website that it would close nine Best Buy stores in mainland China and planned to open nearly 50 Five Star Appliance stores in China during fiscal 2012.

In 2014, Best Buy sold all of its businesses in China, including FiveStar Appliances, to Zhejiang Jiayuan Group and officially withdrew from China.

Revenue

In 1992, the company's annual revenue reached $1 billion

Best Buy's revenues for fiscal year 2002 were $19.6 billion.

By the end of 2004, Best Buy had 825 stores in North America, with an average store area of ​​45,000 square feet. Its sales in fiscal 2004 were US$24.547 billion, accounting for 16% of the market share.

In fiscal year 2005, Best Buy's operating revenue reached $27.433 billion and its net profit was $984 million. Currently, Best Buy has a 16% market share in the U.S. consumer electronics market. Walmart ranks second with an 11% market share.

In fiscal year 2017, total revenue was $36.2 billion, of which 8% came from Canada and Mexico.

References

• 1. China's Suning vs. America's Best Buy: Sohu [cited on 2017-11-13T16:00:00.000Z]
• 2. Why did Best Buy fail as a retail giant? : ebrun [cited on 2018-03-06T16:00:00.000Z]
• 3. What is Bestbuy? Introduction to Bestbuy and its development history: Sohu [cited on 2019-07-10T16:00:00.000Z]
• 4. Best Buy History: maigoo [cited on 2018-05-03T16:00:00.000Z]