Best Buy Co., Inc. (NYSE: BBY) is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates under both the Best Buy and Future Shop label. Together these operate more than 1,150 stores in the United States, Puerto Rico, Canada, China, and Mexico. In addition, the company has rolled out over 100 Best Buy Express Automated Retail stores or "ZoomShops", operated by Zoom Systems, in airports and malls around the U.S. The company's corporate headquarters are located in Richfield, Minnesota.
Best Buy was named "Company of the Year" by Forbes magazine in 2004, "Specialty Retailer of the Decade" by Discount Store News in 2001,ranked in the Top 10 of "America's Most Generous Corporations" by Forbes magazine in 2005 (based on 2004 giving), and made Fortune magazine's List of Most Admired Companies in 2006.
On March 9, 2009, Best Buy became the primary electronics retail store (online and bricks and mortar) in the eastern United States, after smaller rival Circuit City went out of business.[10] Fry's Electronics remains a major competitor in the western United States, while hhgregg remains competitive in the eastern United States. Many locations feature in-store pickup, which can be arranged through the company's website.
Best Buy is also a retailer of cellular phones with phones from Verizon Wireless, AT&T Wireless, Sprint PCS, and T-Mobile.[citation needed] Best Buy also has standalone Best Buy Mobile stores in shopping malls that sell only a subset of products carried at the larger stores.
In 2011, during the three-month period ended February 26, Best Buy saw its revenue and profits slide, but generated a profit of $651 million on revenue of $16.26 billion. In comparison to the same period in 2010, it tallied $16.55 billion in revenue and a $779 million profit.[12]
In 1966, Richard M. Schulze and business partner James Wheeler opened Sound of Music, an audio specialty store, in Saint Paul, Minnesota.[13][14] In 1967, Sound Of Music acquired Kencraft Hi-Fi Company and Bergo Company. Two additional Sound of Music stores were opened near the University of Minnesota and in downtown Minneapolis. The Sound of Music ended its first year with gross sales of $173,000 (USD). In 1969, Sound of Music's stock began trading as publicly-held company, the company enacted its first employee stock option plan, and three stores opened in the Twin Cities area. In 1970, Sound of Music hit the $1 million mark in annual revenues. In 1979, Sound of Music became the first suppliers of video and laserdisc equipment including Panasonic, Magnavox, Sony and Sharp.
On June 14, 1981, A tornado hit the Roseville, Minnesota store. Sound of Music responded with a "Tornado Sale," (with the sale promoted as a "Best Buy") and it became an annual event. In 1983, Sound of Music's board of directors approved a new corporate name: Best Buy Co., Inc.,[13] the company opened first superstore in Burnsville, Minnesota, featuring expanded selling space, a wide assortment of discounted brand-name goods, central service, and warehouse distribution. Stores began selling appliances and videocassette recorders. In 1985, Best Buy (symbol BBY) debuted on the New York Stock Exchange[13] with an offering of 8.3 million shares. In 1987, Best Buy's brand logo changed to the yellow tag. In 1989, Best Buy unveiled a new "grab-and-go" store format.
In 1990, Best Buy eliminated commissions for standalone sales people, but retained bonuses for management and supervisors. In 1992, Best Buy hit the $1 billion mark in annual revenues. In 1994, Best Buy expanded to the Maryland and Virginia markets. In 1997, Best Buy became the first national retailer to sell DVD hardware and software.[citation needed]. In 1998, Best Buy sponsored Stevie Nicks Enchanted Tour. In 2000, Best Buy entered the online retailing business by launching Bestbuy.com, and acquired Magnolia Audio Video, a retailer of high-end consumer electronics.[13] Music compact cassettes were removed from most stores.
In 2001, Best Buy acquired the Canada-based electronics-chain Future Shop Ltd.,[13] which marked the company's entrance to the international marketplace.[14] Though fully owned by Best Buy, Futureshop remains a separate entity operating independently from Best Buy Canada. Best Buy acquired Musicland,[13] a mall-based retailer for music and entertainment software. Best Buy launched Redline Entertainment, an independent music label and action-sports video distributor. In 2002, Brad Anderson succeeded Schulze as Best Buy's CEO. The company acquired Geek Squad, a 24-hour computer support taskforce. The first Canadian Best Buy store opened in Mississauga, Ontario.
