Best Buy 2005 Annual Report Download - page 22

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International stores are generally open 60 to 75 hours per players, car stereos, home theater audio systems, mobile
week, seven days a week. A typical store is staffed by a electronics and accessories. The home-office product
general manager, several department managers, a group includes desktop and notebook computers,
customer service manager, and 48 to 95 staff associates, telephones, networking and accessories. Entertainment
as well as part-time associates. The number of staff software products include DVDs, video game hardware
associates is dependent upon store size, sales volume and and software, CDs, computer software and subscriptions.
store brand. The appliances product group includes major appliances
as well as vacuums, small electrics and housewares.
Narrative Description of Business We also provide a variety of in-store and in-home
Merchandise services related to the merchandise offered within the four
product groups. In-store services include computer set-up,
U.S. Best Buy repair and software installation, as well as the installation
U.S. Best Buy stores offer merchandise in four product of mobile electronics. In-home services include computer
groups: consumer electronics, home-office, entertainment set-up, repair, software installation and home networking,
software and appliances. Consumer electronics, the and the delivery and installation of appliances and home
largest product group for fiscal 2005 based on revenue, theater systems. Services were not a significant part of our
consists of video and audio products. Video products revenue in fiscal 2005. However, we believe that over
include televisions, digital cameras, DVD players, digital time service revenue will become a more significant
camcorders and accessories. Audio products include MP3 component of our business.
The following table presents U.S. Best Buy revenue, by product group, as a percentage of total U.S. Best Buy revenue:
Percentage of Total Revenue
Product Group Fiscal 2005 Fiscal 2004 Fiscal 2003
Consumer Electronics 38% 37% 37%
Home-Office 34% 34% 34%
Entertainment Software 22% 23% 23%
Appliances 6% 6% 6%
Total 100% 100% 100%
Note: The above revenue mix table reflects the reclassification of MP3 players into the consumer electronics product group from the
home-office product group.
digital broadcast satellite systems, digital camcorders, digital
Magnolia Audio Video cameras and accessories. Audio products include home
Magnolia Audio Video stores offer merchandise in two audio components, car stereos, mobile electronics, home
product groups: consumer electronics and home-office. theater audio systems and accessories. The home-office
Consumer electronics, the largest product group for fiscal product group consists primarily of home theater furniture.
2005 based on revenue, consists of video and audio
products. Video products include televisions, DVD players,
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