Best Buy 2013 Annual Report Download - page 6

6
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 store brands. Future Shop stores have predominantly
commissioned sales associates, whereas employees in Best Buy branded stores in Canada, like employees in U.S. Best Buy
stores, are noncommissioned. Each store brand has national management that 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.
Our Five Star stores primarily utilize vendor employees and full-time sales associates to sell our products. Corporate retail
management generally controls advertising, merchandise purchasing and pricing, and inventory policies, although management
for individual regions within our Five Star brand may vary these operations to adapt to local customer needs.
Our stores in Mexico employ an operating model similar to that used in our U.S. Best Buy stores.
Merchandise and Services
Domestic Segment
Our online channel and U.S. Best Buy stores have offerings in six revenue categories: Consumer Electronics, Computing and
Mobile Phones, Entertainment, Appliances, Services and Other. Consumer Electronics consists primarily of video and audio
products. Video products include televisions, e-Readers, navigation products, digital cameras and accessories, digital
camcorders and accessories and DVD and Blu-ray players. Audio products include MP3 players and accessories, home theater
audio systems and components, musical instruments and mobile electronics such as car stereo and satellite radio products. The
Computing and Mobile Phones revenue category includes notebook and desktop computers, tablets, monitors, mobile phones
and related subscription service commissions, hard drives and other storage devices, networking equipment, office supplies and
other related accessories such as printers. The Entertainment revenue category includes video gaming hardware and software,
DVDs, Blu-rays, CDs, digital downloads and computer software. The Appliances revenue category includes both major and
small appliances. The Services revenue category consists primarily of service contracts, extended warranties, computer-related
services, product repair, and delivery and installation for home theater, mobile audio and appliances. The Other revenue
category includes non-core offerings such as snacks and beverages.
U.S. Best Buy Mobile offerings are included in our Computing and Mobile Phones and Services revenue categories. Revenue
from U.S. Best Buy Mobile stand-alone stores is primarily derived from mobile phone hardware, subscription service
commissions from mobile phone network operators and associated mobile phone accessories.
Magnolia Audio Video stores have offerings in two revenue categories: Consumer Electronics and Services. Consumer
Electronics consists of video and audio products. Video products include televisions, DVD and Blu-ray players and accessories.
Audio products include home theater audio systems and components, mobile electronics and accessories. The Services revenue
category consists primarily of home theater system installation, as well as extended warranties.
Pacific Sales stores have offerings in three revenue categories: Appliances, Consumer Electronics and Services. Appliances
consists of major appliances, evenly split between high-end and mass-market premium brands, and plumbing, which consists of
kitchen and bath fixtures including faucets, sinks, toilets and bath tubs. Consumer Electronics consists of video and audio
products, including televisions and home theater systems. The Services revenue category consists primarily of extended
warranties, installation and repair services.
The offerings from our managed service provider for small and mid-sized businesses, mindSHIFT, are included in our Services
revenue category and consist primarily of information technology-related service contracts.
International Segment
The Carphone Warehouse and The Phone House stores in Europe have offerings in two revenue categories: Computing and
Mobile Phones and Services. Computing and Mobile Phones consists primarily of mobile phone hardware, subscription service
commissions from mobile phone network operators, associated mobile phone accessories and tablets. Services consists of
insurance operations, providing protection primarily for the replacement of lost, stolen or damaged mobile phones and tablets,
as well as mobile and fixed-line telecommunication services, billing management services and Geek Squad repair services.
Table of Contents