Best Buy 2011 Annual Report Download - page 6

with such consolidation, the financial and non-financial information presented in this Annual Report on Form 10-K relative
to our Europe, China, Mexico and Turkey operations is also presented on a two-month lag.
Operations
Domestic Segment
Our Domestic segment store operations are organized by store brand. U.S. Best Buy store operations are divided into
districts and are under the management of a retail field officer who oversees store performance through district managers.
District managers monitor U.S. Best Buy store operations and meet regularly with store managers to discuss
merchandising, new product introductions, sales promotions, customer loyalty programs, employee satisfaction surveys and
store operating performance.
Our U.S. Best Buy, U.S. Best Buy Mobile, Magnolia Audio Video, Pacific Sales and Geek Squad stores have developed
procedures for inventory management, transaction processing, customer relations, store administration, product sales and
services, staff training and merchandise display that are standardized within each store brand. Corporate retail
management for each store brand generally controls advertising, merchandise purchasing and pricing, as well as inventory
policies. All stores within each store brand generally operate in the same manner under the standard procedures adjusted
to local customer needs.
International Segment
Located throughout nine European countries, The Carphone Warehouse and The Phone House stores are significantly
smaller than our Best Buy branded stores and employ sales associates that provide independent advice on the best service
and hardware suited to each customer. Most phone sales require in-store registration with the mobile phone network
operator facilitated by our employees, allowing the customer to leave the store with a fully active phone and a service
contract. Advertising, merchandise purchasing and pricing and inventory policies for these stores are controlled by
corporate retail management in each respective local market.
Canada store operations are organized to support two principal brands. Future Shop stores have predominantly
commissioned sales associates who take a proactive role in assisting customers and driving the transaction, whereas
employees in Best Buy branded stores in Canada, like employees in U.S. Best Buy stores, are noncommissioned, allowing
the customers to drive the transaction through interactive displays and grab-and-go merchandising. Each brand has
national management that closely monitors store operations. All Canada stores use a standardized operating system that
includes procedures for inventory management, transaction processing, customer relations, store administration, staff
training and merchandise display. Advertising, merchandise purchasing and pricing and inventory policies are centrally
controlled. Our Best Buy Mobile stores in Canada employ an operating model similar to that used in our U.S. Best Buy
Mobile stores.
China store operations are also organized to support two principal brands. Our Five Star stores primarily utilize vendor
employees and full-time sales associates to sell our products. Our Best Buy branded stores in China have employed an
operating model similar to Best Buy branded stores in the U.S. However, in the fourth quarter of fiscal 2011, we
announced plans to restructure the Best Buy branded stores in China during fiscal 2012. Corporate retail management for
each store brand generally controls advertising, merchandise purchasing and pricing, and inventory policies, although
management for individual regions within our Five Star brand may vary these operations locally to adapt to customer
needs. We anticipate consolidating the support operations for the Best Buy branded stores in China with the existing Five
Star business as a part of the announced restructuring of such stores.
Our Best Buy branded stores in the U.K., Mexico and Turkey employ an operating model similar to that used in our U.S.
Best Buy stores. In the fourth quarter of fiscal 2011, we announced plans to exit the Turkey market during fiscal 2012.
6