Best Buy 2013 Annual Report Download - page 38

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The components of the 1.5% revenue increase in the Domestic segment in fiscal 2012 were as follows:
Extra week of revenue(1) 1.8 %
Net new stores 1.3 %
Comparable store sales impact (1.6)%
Total revenue increase 1.5 %
(1) Represents the incremental revenue associated with stores in our Domestic segment in fiscal 2012, which had 53 weeks of activity, compared to 52 weeks
in fiscal 2011.
The impact of net new stores on our revenue is a result of net store changes during the past 12 months, as well as stores opened
in the prior fiscal year that are not included in comparable store sales due to the timing of their opening. The addition of large-
format Best Buy branded stores contributed the majority of the total change in revenue associated with net new stores. The
addition of small-format Best Buy Mobile stand-alone stores contributed a smaller portion of the revenue increase due to the
following factors: (1) their smaller square footage; (2) their limited category focus compared to our large-format stores; and (3)
the majority of fiscal 2012 openings taking place in the second half of the fiscal year.
The following table presents the Domestic segment's revenue mix percentages and comparable store sales percentage changes
by revenue category in fiscal 2012 and 2011:
Revenue Mix Summary Comparable Store Sales Summary
12 Months Ended 12 Months Ended
March 3, 2012 February 26, 2011 March 3, 2012 February 26, 2011
Consumer Electronics 36% 37% (5.4)% (6.3)%
Computing and Mobile Phones 40% 37% 6.0 % 3.6 %
Entertainment 12% 14% (16.3)% (13.3)%
Appliances 5% 5% 10.6 % 7.0 %
Services 6% 6% (0.6)% 0.5 %
Other 1% 1% n/a n/a
Total 100% 100% (1.6)% (3.0)%
The following is a description of the notable comparable store sales changes in our Domestic segment by revenue category:
• Consumer Electronics: The 5.4% comparable store sales decline was driven primarily by decreases in the sales of
digital imaging products and televisions. The decrease in digital imaging products resulted from a combination of
supply chain constraints due to natural disasters in Asia in both the early and later portions of the fiscal year, as well as
overall industry softness. The decrease in television sales was mainly due to a decline in average selling price. The
declines were partially offset by strong sales of e-Readers due to high customer interest, new product launches and our
broad assortment of such products.
• Computing and Mobile Phones: The 6.0% comparable store sales gain resulted primarily from increased sales of
tablets, as consumer demand remained strong, and mobile phones due to new product launches in the second half of
the year. The strong performance from tablets and mobile phones was partially offset by a decline in sales of notebook
computers.
• Entertainment: The 16.3% comparable stores sales decline was mainly the result of a decline in gaming due to
overall industry softness, particularly in the fourth quarter. In addition, we continued to experience declines in the
sales of movies and music.
• Appliances: The 10.6% comparable store sales gain was primarily due to increased sales resulting from effective
promotional activity.
• Services: The 0.6% comparable store sales decline was primarily due to a decrease in computer services as a result of
a shift in focus from one-time repair services to ongoing technical support service contracts, partially offset by
increases in the sales of repair services (primarily related to mobile phones) and warranties.
Our Domestic segment experienced a decrease in gross profit of $128 million, or 1.4%, in fiscal 2012 compared to fiscal 2011,
due to a decline in the gross profit rate. The 0.7% of revenue decrease in the gross profit rate resulted primarily from the
following factors:
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