Best Buy 2012 Annual Report Download - page 43

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The following table reconciles our International segment stores open at the end of each of the last three fiscal years:
Fiscal 2010 Fiscal 2011 Fiscal 2012
Total Stores
at End of
Fiscal Year Stores Opened Stores Closed
Total Stores
at End of
Fiscal Year Stores Opened Stores Closed
Total Stores
at End of
Fiscal Year
Best Buy Europe(1) 2,371 85 (99) 2,357 145 (109) 2,393
Canada
Future Shop 144 2 — 146 5 (2) 149
Best Buy 64 7 — 71 6 — 77
Best Buy Mobile stand-alone 4 6 — 10 20 — 30
China
Five Star 158 12 (4) 166 41 (3) 204
Mexico
Best Buy 5 1 — 6 2 — 8
Total International segment stores 2,746 113 (103) 2,756 219 (114) 2,861
(1) Represents small-format The Carphone Warehouse and The Phone House stores.
Fiscal 2012 Results Compared With Fiscal 2011
During fiscal 2012, we significantly restructured our International segment. We completed the exit of our large-format Best
Buy branded stores in the China and Turkey markets, which we had announced in the fourth quarter of fiscal 2011, and re-
focused our Best Buy Europe strategy by closing our large-format Best Buy branded stores in the U.K. to focus on our small-
format stores. We also completed the Mobile buy-out in fiscal 2012, which will allow us to fully benefit from growing
connections opportunities in the U.S. and Canada. In fiscal 2013, we plan to focus internationally on our existing markets of
Canada, China and Mexico, as well as small-format stores in Europe. Notable store opening plans in fiscal 2013 include
approximately 50 new Five Star stores in the growing China market.
The International segment comparable store sales decline in fiscal 2012 was led primarily by declines in mobile phones as a
result of market pressure in Europe and continued market softness in gaming in Canada. However, we experienced some
positive results, including comparable store sales gains in tablets throughout the segment, as well as gains in mobile phones in
Canada and our Five Star operations. In addition, Five Star appliance sales benefited from continued government stimulus
programs, which effectively ended in December 2011. While we believe the stimulus programs were a significant driver of
appliance sales, it is not possible to quantify the impact that the expiration of the programs may have on our future results. Our
operating loss was driven primarily by a goodwill impairment charge within our Best Buy Europe reporting unit triggered by
the Mobile buy-out in the fourth quarter, which more than offset the margin improvements, particularly within key product
categories in Canada, and the decrease in restructuring charges in fiscal 2012 compared to fiscal 2011.
The components of the International segment's 3.3% revenue increase in fiscal 2012 were as follows:
Impact of foreign currency exchange rate fluctuations 3.6 %
Net new stores 2.6 %
Extra week of revenue(1) 0.6 %
Comparable store sales impact (1.8)%
Non-comparable sales channels(2) (1.7)%
Total revenue increase 3.3 %
(1) Reflects the incremental revenue associated with stores in Canada in fiscal 2012, which had 53 weeks of activity, compared to 52 weeks in fiscal 2011.
(2) Non-comparable sales channels primarily reflects the impact from revenue we earn from sales of merchandise to wholesalers and dealers as well as other
non-comparable sales channels not included within our comparable store sales calculation.
The net addition of 49 large-format stores throughout the International segment during the past 12 months (Five Star, Best Buy
Canada, Future Shop and Best Buy Mexico) contributed the majority of the change in revenue associated with net new stores.
The net addition of 56 small-format stores, including 20 new small-format Best Buy Mobile stand-alone stores in Canada and
36 net new small-format stores in Europe had a significantly smaller impact on the overall revenue change given their smaller
square footage compared to our large-format stores.