Best Buy 2000 Annual Report Download - page 6

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Reasons for Our Continued Success
We continue to refine our operating model to deliver the latest products and services quickly.
Our evolving store format has helped to make us the consumers’ choice for new technology in
a fun, informative and no-pressure shopping environment. Average revenues per store surpassed
$37 million, more than twice our nearest national competitor. We believe we have created a
brand and shopping format customers prefer.
Best Buy has become the consumers’ destination for digital technology through effective
merchandising, expanded product selection and improved sales execution. Digital products, which
grew to 10% of our sales mix last year, are expected to be one of the fastest-growing product categories
in the upcoming year. Many of the products we sell today weren’t available to consumers 10 years ago.
The support of our more than 60,000 hard-working and knowledgeable employees ensured this
past year’s success. Our high-caliber team gives the Company a competitive advantage, helping
our customers understand even the most complex technologies.
The healthy economy—with particularly strong consumer spending in our sector—and increased
sales of digital products enabled Best Buy to achieve double-digit comparable store sales growth for
eight of the past nine quarters.
In fiscal 2000, we opened 47 stores, including our entry into Sacramento, San Diego and San
Francisco, Calif.; as well as Richmond, Va. This autumn, we will enter the densely populated
metropolitan New York area with more than a dozen stores—part of a three-year, 40-store strategy
for the market. Our goal is to open approximately 60 new stores per year for the next five years,
bringing our total store count to nearly double what it is today. Last year we introduced nine small-
market stores, serving communities of less than 200,000 people. These 30,000-square-foot stores
offer the same product categories as larger stores but have more flexible floor plans and product
assortments tailored to their communities. We plan to increase our expansion of these stores
over the next five years. This allows Best Buy to continue growing to reach that segment of the
population that lives in smaller communities.
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