Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. Originally founded by Richard M. Schulze and James Wheeler in 1966 as a special audio store called Sound of Music . In 1983, its name was replaced by its current name with more emphasis on consumer electronics.
Internationally, Best Buy also operates in Canada and Mexico, and previously operated in China until February 2011 (when the faction joined the Five Star) and in Europe until 2012. Its subsidiaries include Geek Squad, Magnolia Audio Video, and Pacific Sales. Best Buy also operates the Best Buy Mobile and Insignia brands in North America, plus Five Star in China. Best Buy sells phones from Verizon Wireless, AT & amp; T Mobility, Sprint Corporation, and Boost Mobile in the United States. In Canada, carriers include Bell Mobility, Rogers Wireless, Telus Mobility, their combat brands, and competing small operators, such as SaskTel.
Best Buy was named "Company of the Year" by Forbes magazine in 2004, "Discounter Retailer of the Decade" by Discount Store News in 2001, ranked as the Top 10 "Most Inexpensive Corporations in America" ​​by < i Forbes in 2005 (based on 2004), and made a list of "Most Admired Companies" magazines in 2006. Hubert Joly currently serves as chairman and CEO of Best Buy. According to Yahoo! Finance, Best Buy is the largest specialty retailer in the consumer electronics retail industry of the United States.
Video Best Buy
History
Initial history
In August 1966, Richard M. Schulze and business partners opened Sound of Music, an electronics store specializing in high-quality stereos in Saint Paul, Minnesota. Schulze financed the opening of his first store with his personal savings and a second mortgage he spent at his family's home. In 1967, Sound of Music acquired Kencraft Hi-Fi Company and Bergo Company. Sound of Music earned $ 1 million in revenue and generated about $ 58,000 in its first year. In 1969, Schulze bought his business partner. Sound of Music has three stores and is a public company listed on the NASDAQ exchange.
Sound of Music operated nine stores across Minnesota in 1978. In 1981, the location of Roseville, Minnesota, Sound of Music, at the time of Sound of Music's biggest and most profitable store, was hit by a tornado. The store's roof was cut off and the showroom was destroyed, but the warehouse was left intact. In response, Schulze decided to have a "Tornado Sale" of damaged stock and excess in the damaged store parking lot. He poured the rest of his marketing budget to advertise sales, promising "best purchase" in everything. Sound of Music earns more money during a four-day sale than in a typical month.
In 1983, with seven stores and $ 10 million in annual sales, Sound of Music was renamed Best Buy Company, Inc. The company is also expanding its product offerings to include home appliances and VCRs, in an effort to expand its core customer base in the future. of men aged 15 to 18 years. Later that year Best Buy opened its first superstore in Burnsville, Minnesota. Burnsville's location featured a high-volume, low-volume business model, borrowed in part from Schulze's successful Tornado sales in 1981. In its first year, the Burnsville store did all of the other Best Buy stores combined.
Best Buy debuted on the New York Stock Exchange in 1987. In 1989, the company introduced a new store concept dubbed "Concept II". Concept II replaced the dimly lit stylish shops with brighter and more fashionable shops. The store also starts putting all the stock on the sales floor rather than in the stockroom, has fewer salespeople and provides more self-help product information for its customers. Best Buy also gets rid of the assigned sales force. The commissionless sales environment "creates a more relaxed shopping environment free of high-pressure sales tactics used in other stores," but is unpopular with vendors and suppliers. Some suppliers, like Maytag, Whirlpool, and Sony, are upset that the salespeople will no longer push their products and stop selling their goods at Best Buy stores. Suppliers returned after Best Buy sales and revenue grew after the launch of Concept II.
In 1992, the company reached $ 1 billion in annual revenue. In 1995, Best Buy launched its "Concept III" store, which is larger than its previous store. Concept III stores include expanded product offerings, interactive touch screen kiosks featuring product information for customers and employees, and demonstration areas for products such as surround sound and videogame stereo systems.
Best Buy launched its "Concept IV" store with its expansion into New England in 1998. Concept IV stores include an open layout with products organized by category, cash registers located all over the store, and slightly more shops small stores from Concept III. The stores also have a large area to demonstrate home theater systems and computer software.
In 1999, Best Buy was added to Standard & amp; Poor's S & amp; P 500.
2000s
In 2000, Best Buy formed Redline Entertainment, an independent music label and an action-sports video distributor. The company acquired Magnolia Hi-Fi, Inc., an audio-video retailer located in California, Washington and Oregon, in December 2000.
In January 2001, Best Buy acquired Musicland Stores Corporation, a Minnetonka, Minnesota retailer that sells home entertainment products under Sam Goody, Suncoast Moving Image Company, Media Play and OnCue brands. Best Buy bought the company for $ 425 million in cash and the assumption of Musicland debt of $ 271 million. Later that year, Best Buy acquired British Columbia, an electronics company Future Shopping Ltd. based in Canada, marking its entrance into the international market. Under the deal, Future Shop was purchased for approximately $ 377 million and continues to operate as an independent subsidiary of Best Buy Canada.
Brad Anderson succeeded Richard Schulze as CEO of Best Buy in July 2002. Anderson began working at Best Buy in 1973 while studying in seminary. He was promoted to vice president in 1981 and executive vice president in 1986. Anderson recently served as president and COO of Best Buy, a position he has held since 1991. In September of that year, Best Buy opened the Best Canadian Purchase first-branded brand in Mississauga, Ontario. In October, Best Buy acquired Geek Squad, based in Minneapolis, Minnesota, and a 24-hour residential computer repair business with offices in Minneapolis, Chicago, Illinois, Los Angeles, California and San Francisco, California.
Best Buy stores in the US exceeded 600 stores and the company opened its first global source office in Shanghai, China in 2003. In June, Best Buy broke free of Musicland in a deal with Sun Capital Partners in which Sun Capital received all shares and debts Musicland. Best Buy launched its "Reward Zone" loyalty program in July after an 8-month pilot program in San Diego, California. Also in 2003, Best Buy's corporate office was consolidated into one campus in Richfield, Minnesota.
In January 2004, Best Buy hired Virtucom Group to change Best Buy's website and handle all of the company's online content. In May, the company launched a "customer centricty" program, which segmented its store according to customer profiles. The program also asks employees to focus on specific customer groups rather than product categories. In October, Best Buy finished launching Geek Squad "precincts" at every American Best Buy store.
In April 2005, Best Buy began eliminating mail-in rebates in response to negative customer reactions to them, and instead began distributing instant rebates via notebook computers.
In May 2006, Best Buy acquired a majority stake in China's Five Star Appliance Jiangsu appliance retailer for $ 180 million. At the time of the deal, Jiangsu is China's fourth largest appliance network with 193 stores in eight Chinese provinces. In June, the company opened the Geek Squad police station at Office Depot in Orlando, Florida. Test market then expanded to Denver, Colorado.
In January 2007, the first Best Buy brand store in China officially opened in Shanghai, China. In March 2007, Best Buy acquired Speakeasy, a provider of VoIP, data and IT services based in Seattle, Washington. The acquisition was worth $ 80 million and, under the agreement, Speakeasy began operating as a wholly owned subsidiary of Best Buy. The company's products are also part of Best Buy's For Business program. Best Buy also expanded the Geek Squad market test in March, opening Geek Squad police station at FedEx Kinkos store located in Indianapolis, Indiana and Charlotte, North Carolina. In October 2007, Best Buy became the first consumer electronics retailer to break out of the analog television market, bringing only digital products that became mandatory in June 2009 by the FCC.
In February 2008, Best Buy opened its first store in San Juan, Puerto Rico. The Best Buy Geek Squad market test at Office Depot and FedEx Kinkos store expires in March. Also in March, the company began promoting the format of Blu-ray optical discs via HD DVD format, a move that ultimately contributed to Toshiba's decision to drop HD DVDs. In May, the company agreed to buy 50% of the retail division of The Carphone Warehouse, a mobile phone retailer in London, UK. The deal is worth $ 2.1 billion.
In July 2008, Best Buy announced that it will start selling musical instruments and related equipment at over 80 retail stores, making the company the second largest distributor of music instruments in the US. Best Buy became the first third party retail seller of Apple iPhone in September. Later that month, the company agreed to acquire Napster for $ 121 million. In December, Best Buy opened its first store in Mexico.
In February 2009 Best Buy took advantage of its partnership with The Carphone Warehouse to launch Best Buy Mobile, Best Buy brand cellular retailer. Best Buy A self-contained mobile store opened in a shopping center and downtown urban area. Best Buy Mobile outlets are also added in all Best Buy brand stores.
In June 2009, Brian Dunn became CEO of Best Buy. Dunn replaces Brad Anderson, who retired. Dunn had joined Best Buy in 1985 as a sales partner. In 2000, Dunn became senior vice president of East Coast operations and president of North American retail operations in 2004. He recently served as president of Best Buy, a position he has held since 2006.
Best Buy partnered with Roxio's CinemaNow to launch a movie download service on demand that will allow customers to stream content to whatever device that Best Buy purchased on the Internet in November 2009. In December, Best Buy Turkey first opened in? Zmir.
2010s
In April 2010, Best Buy opened the first UK-based Best Buy brand store based in Thurrock. The company finally opened 11 Best Buy stores in the UK. The company closed all Best Buy stores in the UK in November 2011. That same month, Best Buy purchased Carphone Warehouse from Best Buy Mobile for $ 1.3 billion. Best Buy and The Carphone Warehouse maintained their Best Buy Europe joint venture, which currently operates 2,500 mobile phone shops across Europe.
The company closed all Best Buy branded stores in China in February 2011, when the merger of Best Buy China with Jiangsu Five Star, which has been a wholly-owned subsidiary of Best Buy in 2009. In December 2011, Best Buy bought mindSHIFT Technologies, a company that provides support IT for small and medium enterprises, for $ 167 million.
In 2012, in response to the decline in overall revenue, Best Buy announced plans to undergo a "transformation strategy". The store has begun to adopt the redesigned "Connected Store" format, providing Geek Squad with a centralized service desk and applying the "store-in-a-store" concept to Pacific Kitchen & amp; Center for Bathroom and Magnolia Design.
In April 2012, Brian Dunn resigned as Best Buy CEO during an internal company investigation for alleged personal misconduct stemming from an inappropriate relationship with Best Buy women employee. Best Buy was named CEO of George L. Mikan III following Dunn's resignation. Internal investigations were released in May 2012 and alleged that founder and head of Best Buy Richard Schulze knew of Dunn's inappropriate relationship and failed to notify Best Buy's board. Schulze later resigned as chairman of his company. Best Buying Director Hatim Tyabji replaced Schulze as chairman of Best Buy.
Hubert Joly replaces Mikan as Best Buy CEO in September 2012. Joly has served as CEO of Carlson, a hospitality conglomerate, since 2008. He leads initiatives such as price matching, speeding up delivery times for online purchases, building "in-store stores" "Sections for major brands such as Apple, Google, Microsoft and Samsung, and delivering more product training to employees.
In April 2013, Best Buy quit the European consumer electronics market when it sold its 50% stake in Carphone Warehouse back to UK-based mobile phone retailers. The sale is worth about $ 775 million.
The increasing trend of online shopping began to erode income and earnings in the 2010s. A 4% decrease in sales for the June 30, 2014 quarter marked the tenth consecutive quarter in which Best Buy sales declined. The company, in announcing the results, said it focuses more on digital-media in its marketing, moving away from newspapers, magazines, and television commercials.
On March 28, 2015, Best Buy announced the closure of Canada's Future Store network; 65 of 131 locations previously converted to Best Buy locations, while the rest (especially those close to Best Buy available) are permanently closed.
On March 1, 2018, the company announced that it would close 250 Best Buy Mobile stand-alone stores in the United States at the end of May, due to low revenues.
On May 9, 2018, the company launched a new logo for the first time in nearly three decades.
Maps Best Buy
Company affairs
Business operations
Best Buy sells consumer electronics and a variety of related merchandise, including software, video games, music, cell phones, digital cameras, car stereos and video cameras, in addition to household appliances (washing machines, dryers and refrigerators) sales-commission. Under the Geek Squad brand, Best Buy offers unnecessary computer repairs, warranty services, and service packs.
The building exterior of Best Buy branded stores is usually light brown, with the entrance designed to look like a blue box emerging from the structure. Company employees operate under the results of only the working environment from 2005 to March 2013, when management styles are abandoned by Best Buy CEO Hubert Joly.
On October 29, 2016, Best Buy operated 1,026 Best Buy, 331 Best Buy Mobile Store, and 28 independent Pacific Sales stores in the US. Best Buy also operates: 135 Best Buy and 53 Best Buy Mobile stand-alone in Canada; and 18 Best Buy stores and 5 Best Buy Express stores in Mexico. Best Buy came out of the European market in April 2013.
Brand home
Best Buy also manufactures products under eight home brands:
- Dynex - Discounts on electronic and computer equipment such as HDTVs, Blu-ray players, storage media, data and power cables, web cameras, and office supplies.
- RocketFish - The cable primarily used with home theater installations and settings as well as on computer and game accessories. RocketFish Mobile covers mobile phone cases, gel skins, clips, and chargers for mobile phones, GPS, and other proprietary exclusive products.
- Insignia - Electronic equipment such as HDTVs, tablets, home-theater systems, and digital imaging devices.
- Capital - Used for stylishly oriented mobile accessories, including casing, cable, and Bluetooth speakers.
- Platinum - The company's high-quality brand for the company, generating many products, such as cables, mobile accessories, tablet accessories, and digital imaging equipment.
- Init - Stores products like media storage, tool bags, tote bags, and furniture for home theaters.
- Pacific Sales - A selection of high-end tools in the Best Buy store.
- Magnolia Home Theater - Selection of upscale home theater for audio and visual equipment, including 4K, 3D, and large televisions, projectors, receivers, and speakers. Magnolia Home Theater can be found at Best Buy locations. Magnolia Home Theater also has a group called Magnolia Design Center, where special home theater settings can be designed and installed.
Criticism
Warranty
In 2000, two Florida consumers filed a lawsuit against the company, alleging that the company was involved in fraudulent business practices related to the sale of extended warranties (or, rather, service plans). The lawsuit claims that the shopkeeper has misrepresented the manufacturer's warranty to sell its own Product/Substitute Plan and that Best Buy has "entered into a firm-wide scheme to conduct high pressure selling techniques involving extension of warranties" and that the company uses "artificial barriers to prevent consumers who buy a 'complete complete guarantee' of making legitimate claims. " The company eventually set $ 200,000 but admitted to not making a mistake.
In 2014, Best Buy awarded $ 4.55 million in a class action suit filed against them in April 2010 by a consumer who claimed Best Buy made an unsolicited phone call that contradicted the Phone Consumer Protection Act.
Pricing
In the second quarter of 2007, Connecticut Attorney General Richard Blumenthal ordered an investigation into the use of a website within the company's store that allegedly misled customers for the sale price. In December 2007, the Los Angeles Times reported the same issue, where some customers claimed they thought they were surfing on bestbuy.com's Internet version at the in-store kiosks only to find that the site only reflected the price in the store. In response, company spokesman Sue Busch indicated the in-store kiosk is not intended for price-match purposes and is more a means of navigating in-store availability. Since the initial investigation, banners were placed on a store site to make their customers more aware of the difference.
Analog television
In April 2008, the US Federal Communications Commission (FCC) fined the company $ 280,000 for not warning customers that its analogue television would not receive an over-the-air station after the digital transition on June 12, 2009. The company challenged this ruling. in May 2008 by the FCC said that and in accordance with current FCC regulations relating to the digital transition.
Environmental issues
Best Buy is one of the few companies mentioned in a 2007 report by Greenpeace to purchase raw materials or manufactured products from logging companies that, in Greenpeace's opinion, contribute to unethical deforestation against taiga in Canada.
However, since then, the company launched a so-called Greener Together to improve the energy efficiency of its products and reduce consumer waste through more recyclable packaging and proper disposal of certain electronic components such as rechargeable batteries and empty ink cartridges.
As a way to improve the image and environmental issues of the past, the company introduced a recycling program in 2009 that has collected nearly half a billion consumer electronics and e-waste and is available in all their stores at a nominal cost. These items are then submitted to certified recyclers in the US for proper recycling. The company's goal is to collect one billion pounds of recycling.
It has also been named to the top 50 list of the largest US environmental protection agencies of green-power buyers. In 2011, the company purchased nearly 119 million kilowatt-hours (kWh) of green power generated from renewable resources, such as wind, solar, geothermal, biogas, biomass and low-impact water.
References
Further reading
External links
- Official website
Source of the article : Wikipedia
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