Best Buy 2008 Annual Report Download - page 15

We consolidate the financial results of our China per week, seven days a week. Depending on an individual
operations on a two-month lag. Consistent with such store’s volume and product offerings, store staffing
consolidation, the financial and non-financial information includes eight to 20 commissioned sales personnel and
presented in this filing relative to our China operations is one to three hourly personnel. Corporate management for
also presented on a two-month lag. Magnolia Audio Video stores generally controls
advertising, merchandise purchasing and pricing, as well
Operations as inventory policies.
Domestic Segment International Segment
U.S. Best Buy store operations are organized into eight Canada store operations are organized to support two
territories. Each territory is divided into districts and is brands, each headed by a senior vice president. Each
under the management of a retail field officer who senior vice president has national management that closely
oversees store performance through district managers. monitors store operations and meets regularly with store
District managers monitor store operations and meet managers to review management and staff training
regularly with store managers to discuss merchandising, programs, customer feedback and requests, store
new product introductions, sales promotions, customer operating performance and other matters. Meetings
loyalty programs, employee satisfaction surveys and store involving store management, product managers, and
operating performance. Advertising, merchandise advertising, financial and administrative staff, as well as
purchasing and pricing, as well as inventory policies, are senior management, are held quarterly to review operating
generally controlled centrally. results and to establish future objectives.
U.S. Best Buy stores are generally open 80 hours per Canada stores are generally open 60 to 75 hours per
week, seven days a week, with extended holiday hours. A week, seven days a week. An average Future Shop store is
typical store is staffed by one general manager and four staffed by a general manager, an operations manager,
managers. The average staff per store in fiscal 2008 was one to four department managers and 50 to 150 sales
approximately 110 employees, including full-time, associates, including full-time and part-time sales
part-time and seasonal employees, and varied by store associates. An average Canada Best Buy store is staffed
depending on sales volumes. with a general manager; assistant managers for
U.S. Best Buy stores use a standardized and detailed operations, merchandising, inventory, sales and services;
operating procedure called our Standard Operating and 80 to 110 sales associates, including full-time and
Platform (‘‘SOP’’). The SOP includes procedures for part-time sales associates. The number of sales associates
inventory management, transaction processing, customer is dependent upon store size and sales volume.
relations, store administration, product sales and services, Canada stores use a standardized operating system. The
and merchandise display. All stores are intended to operating system includes procedures for inventory
operate in the same manner under the SOP. management, transaction processing, customer relations,
Pacific Sales stores are typically managed by a store store administration, staff training and performance
manager who also sells appliances. Pacific Sales stores are appraisals, as well as merchandise display. Advertising,
generally open 40 hours per week, five days a week. merchandise purchasing and pricing, and inventory
Depending on an individual store’s volume and product policies are centrally controlled.
offerings, store staffing includes approximately 10 Five Star stores are generally open 77 to 84 hours per
noncommissioned sales personnel and approximately four week, seven days a week. A typical Five Star store is
sales support personnel. Corporate management for staffed by a general manager; six to 10 department
Pacific Sales stores generally controls advertising, managers; 27 to 100 full-time sales associates; and 50 to
merchandise purchasing and pricing, as well as inventory 200 vendor employees who sell products. Corporate
policies. management at Five Star centrally controls advertising,
Magnolia Audio Video stores are typically managed by a merchandise purchasing and pricing and inventory policies
store manager and an audio/video sales manager. for major brand products, while management for
Magnolia Audio Video stores are generally open 72 hours individual regions control these operations for local
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