Best Buy Co., Inc.
7601 Penn Avenue South
Richfield, MN 55423
612 291 1000
Best Buy Blog Highlights
Best Buy Co., Inc. (NYSE: BBY) is ranked #75 on the 2020 Fortune 500 list
- CES keynote: Best Buy CEO shares lessons learned from pandemic
- Best Buy Health partnered with Amazon to launch a telehealth-enabled flip phone for seniors
- Best Buy acquired all of the outstanding shares of Critical Signal Technologies, Inc., a health services company.
Best Buy Social Media properties
Best Buy Sales Trigger Events
Best Buy Appoints Steven E. Rendle to Board of Directors
March 02, 2021
Best Buy Appoints Mario J. Marte to Board of Directors
January 08, 2021
Best Buy making changes to shift retailer further toward 'digital-first'
Throughout the pandemic, Best Buy has adjusted because it had to — expanding curbside pickup, adapting hours, redesigning stores. This year, the Richfield-based electronics chain says it must make more strategic changes because the shift to online shopping is here to stay. Executives said Thursday as they announced a strong fourth-quarter financial report that customer behavior is driving the company to become even more "digital-first." They also predicted that they could face slowing sales as consumers shift back to spending in areas such as travel and dining out.
They confirmed cuts to their workforce in brick-and-mortar stores, hinted at possible future changes to store count and layout and further investments in health technology. "We know that the customer has completely changed the way that they are thinking about shopping, and with that big of a digital shift happening in that short of a period of time, we have been doing everything we can to adjust to the new reality," said Chief Executive Corie Barry in a call with reporters. Digital sales increased about 90% to $6.7 billion during the fourth quarter over the same period a year ago — a record for the period that includes holiday sales.
CES keynote: Best Buy CEO shares lessons learned from pandemic
Best Buy saw strong sales in 2020 as homebound Americans worked, learned, ate and entertained at home. “Enriching lives through technology became instantly the reality for every single person meaning, all of a sudden, we were all stuck at home on the backs of technology,” Best Buy CEO Corie Barry said during a CES 2021 keynote speech Wednesday. “Your kids literally, overnight, we’re learning from home. For anyone with large corporate offices, all of your employees were likely working from home. We were entertaining from home. We were cooking. Everything overnight became available on the back of technology.” Online sales surged in 2020 after pandemic-related lockdown measures enacted in March shuttered brick-and-mortar stores throughout the U.S. Most retailers were quick to adapt, with curbside pickups and bolstering their logistics and fulfillment centers to handle the crush of online orders.
Best Buy Health partnered with Amazon to launch a telehealth-enabled flip phone for seniors
Electronics retail giant Best Buy's health unit launched a new flip phone—dubbed LivelyFlip—that can integrate with Amazon's Alexa voice assistant and boasts telehealth features to connect seniors to on-demand providers, per Becker's Hospital Review. The phone's Amazon voice-powered tech enables seniors to make calls and send texts—in addition to the device's urgent call button, which links a user directly to 24/7 access to care teams at telehealth company GreatCall.
Best Buy says 30% of 1,000 new tech hires will be people of color or women
Best Buy plans on hiring more than 1,000 new tech employees in the next two years — and 30% will be people of color or women. "We are being incredibly intentional about our hiring decisions and how we approach each and every team to make sure it aligns with the communities in which we operate," said Mark Irvin, Best Buy's chief inclusion, diversity and talent officer, in an interview.
Executives at the Richfield-based electronics chain said the new hiring plan for positions such as engineers and product managers is one of several steps the company is taking to address disparities within the tech industry. They said the move also will result in better services and experiences for Best Buy customers.
Best Buy Successfully Changed Its Strategy To Lead In The Pandemic
For the second quarter 2020, Best Buy reported a +3.9% increase in enterprise sales of $9.9 Billion compared to $9.5 Billion last year. Domestic sales increased +3.6% to $9.1 Billion from $8.8 Billion last year. Domestic comparable store sales rose +5%, and on-line sales rose +242% over last year. International on-line sales rose +15.1%. GAAP fully diluted earnings per share were $1.65 compared to $0.89 last year.
The company has great strength in its main categories. In addition, its recently formed Best Buy Health division has a new CEO who will join the company on September 1, 2020. Deborah DiSanzo is an impressive leader. She is now the CEO of Philips Health Care and will be a valuable asset as Best Buy tries to broaden its market reach and cater to senior citizens.
Best Buy Earnings Call Highlights
Best Buy Co., Inc. (NYSE:BBY) Q4 2021 Earnings Conference Call
February 25, 2021
Executives In Attendance
- Mollie O'Brien - Vice President of Investor Relations
- Corie Barry - Chief Executive Officer
- Matthew Bilunas - Chief Financial Officer
- Michael Mohan - President and Chief Operating Officer
Analysts in Attendance
- Anthony Chukumba - Loop Capital Markets
- Christopher Horvers - JPMorgan
- Michael Lasser - UBS Investment Bank
- Joe Feldman - Telsey Advisory Group
- Karen Short - Barclays Capital
Comments from Corrie Barry, CEO:
"As we think about our strategy moving forward, many of the things we discussed at our 2019 investor update came to life in a very accelerated way last year. It is important to reiterate the following three concepts we believe to be permanent and structural implications of the pandemic that are shaping our strategic priorities. One, customer shopping behavior will be permanently changed in a way that is even more digital and puts customers entirely in control to shop how they want."
"Our strategy is to embrace that reality and to lead, not follow. It's too early to know exactly how much of our sales and customer shopping activity will be via digital channels over time. But as I mentioned earlier, online sales were up 43% of our domestic -- online sales worth 43% of our domestic sales in fiscal '21. And we are planning for the mix to be approximately 40% in fiscal '22. That compares to 19% in fiscal '20 and only 5% just 10 years ago."
"Two, our workforce will need to evolve in a way that meets the needs of customers while providing more flexible opportunities for our employees. And three, technology is playing an even more crucial role in people's lives. And as a result, our purpose to enrich lives through technology has never been more important. We play a vital role in bringing technology to life for both our customers and our vendor partners."
"During Q4, we used 340 stores or roughly 35% of our store locations to handle about 70% of our total ship-from-store units. We believe that we can achieve similar results consolidating volume, using a smaller group of stores as hubs over time. In addition, in a subset of these stores, we plan to reduce the sales floor square footage and install warehouse grade packaging station equipment and supplies. As a result, we expect to drive both efficiency and effectiveness."
Best Buy Board of Directors
|J. Patrick Doyle||Chairman||Best Buy Co., Inc.|
|Corie Barry||Chief Executive Officer||Best Buy Co., Inc.|
|Lisa M. Caputo||Executive Vice President of Marketing, Communications and Customer Experience||The Travelers Companies, Inc.|
Chief Financial Officer
|David W. Kenny||CEO and Director||Nielsen|
|Karen A. McLoughlin||Chief Financial Officer||Cognizant Technology Solutions Corporation|
|Thomas L. "Tommy" Millner||Retired Chief Executive Officer and a Director||Cabela’s Inc.|
|Claudia F. Munce||Venture Advisor||New Enterprise Associates|
|Richelle P. Parham||Partner & Managing Director||WestRiver Group|
|Eugene A. Woods||President and Chief Executive Officer||Atrium Health|
Best Buy Executive Leadership
|Mike Mohan||President and Chief Operating Officer|
|Whit Alexander||Chief Strategy Officer|
|Rob Bass||Chief Supply Chain Officer|
|Matt Bilunas||Chief Financial Officer|
|Jason Bonfig||Chief Merchandising Officer|
|Melanie Cornell||Chief Learning Officer|
|Frank Crowson||Chief Marketing Officer|
|Deborah DiSanzo||President, Best Buy Health|
|Matt Furman||Chief Communications and Public Affairs Officer|
|Keri Grafing||Chief Compliance Officer|
|Daniel Grossman, M.D.||Chief Medical Officer|
|Damien Harmon||President, Omnichannel Operations and Services|
|Todd Hartman||General Counsel and Chief Risk Officer|
|Mark Irvin||Chief Inclusion, Diversity and Talent Officer|
|Allison Peterson||Chief Customer Officer|
|Howard Rankin||Chief Employee Relations Officer|
|Kamy Scarlett||Chief Human Resources Officer|
|Ray Sliva||President, Retail|
|Brian Tilzer||Chief Digital and Technology Officer|
|Ron Wilson||President, International|
Best Buy Annual Report Highlights
Best Buy 2020 Annual Report
Best Buy has two reportable segments, domestic and international.
CEO's Letter Excerpts
"Technology support and service is another important way we are building
relationships with our customers. We grew our Total Tech Support membership
steadily through the year to end with almost 2.3 million members, versus
approximately 1.0 million members at the end of fiscal 2019.
Our Total Tech Support program provides members unlimited Geek Squad support for all their technology no matter where or when they bought it, in addition to great discounts on installations, protection and in-home services. The program garners strong customer reviews, and members spend more and are twice as likely to use other services than non-members.
In addition, last year we became the nation’s largest physical destination in terms of points-of-presence for Apple-authorized repair services, including same-day iPhone repairs. Almost 40% of these Apple repair customers are either new to Best Buy or haven’t made a purchase in the last year.
We continued to advance our health strategy. Our focus on health, in particular
helping seniors live longer in their homes with our unique combination of tech and touch, has become even more relevant as the world responds to the impacts of COVID-19. In fiscal 2020, we successfully integrated two additional acquisitions that have given us unique and essential capabilities and infrastructure, talent and a base of customer relationships to build from. We serve more than 1 million seniors today and are encouraged by the conversations we are having with potential partners to grow that significantly over time."
Best Buy Financial Highlights
|Fiscal Year Ends||February 1, 2021|
|Most Recent Quarter||August 25, 2020|
|Return on Assets||8.31%|
|Return on Equity||46.13%|
|Revenue Per Share||166.6|
|Quarterly Revenue Growth||3.90%|
|Net Income Avi to Common||1.63B|
|Quarterly Earnings Growth||81.50%|
|Total Cash Per Share||20.98|
|Book Value Per Share||14.64|
|Cash Flow Statement|
|Operating Cash Flow||5.73B|
|Levered Free Cash Flow||4.59B|
Best Buy Acquisitions
On May 9, 2019 Best Buy acquired all of the outstanding shares of Critical Signal Technologies, Inc., a health services company.
On August 7, 2019, Best Buy acquired the predictive healthcare technology business of BioSensics, LLC.
Best Buy Strategy
The company's ongoing focus on reducing cost and driving efficiencies in order to fund investments and help offset pressures is a key element of Best Buy's long-term strategy. Last year, the company completed the $600 million cost reduction target that had set in fiscal 2018.
During fiscal 2020, Best Buy continued to build on the company's already strong multichannel capabilities. Best Buy innovated and designed digital experiences that solve customer needs across online and physical shopping. This includes enhancing the digital shopping platforms with new functionality and evolving marketing strategies to drive engagement with customers, with a particular focus on the app.
At the same time, Best Buy continued to transform the company's supply chain, using automation and process improvements to expand fulfillment options, increase delivery speed and improve the delivery and installation experience.
As a result, online sales grew 17% to make up almost 20% of Domestic revenue in fiscal 2020. Furthermore, online sales are up more than 250% compared to last year since Best Buy moved to the interim curbside-only model, driving the 70% overall sales retention.
Best Buy Org Charts
Download the Deep-Dive Report to see organizational charts on key departments including Finance, HR, IT, Supply Chain, etc.
- Best Buy Contact Info
- Best Buy Org charts on Corporate Structure, Executive Leadership, Sales, Marketing, Finance, HR, Supply Chain, Technology, R&D, Manufacturing, etc.
- Best Buy Financial Insights
- Best Buy SWOT Report
- Best Buy Technologies in Use
- Best Buy IT Budgets
- Best Buy Social Media Profiles
- Best Buy Actionable Sales Trigger Events
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