Best Buy facts for kids
Logo used since May 9, 2018
|
|
Best Buy store in Onalaska, Wisconsin
|
|
|
Formerly
|
|
|---|---|
| Public | |
| Traded as |
|
| Industry | Retail |
| Founded | August 22, 1966 in St. Paul, Minnesota, United States, as Sound of Music |
| Founders |
|
| Headquarters | Richfield, Minnesota,
U.S.
|
|
Number of locations
|
1,125 (2024) |
|
Areas served
|
|
|
Key people
|
|
| Products | Consumer electronics, appliances |
| Services | Tech repair |
| Revenue |  US$43.45 billion (2024) |
|
Operating income
|
US$1.574 billion (2024) |
| US$1.241 billion (2024) |
|
| Total assets | US$14.97 billion (2024) |
| Total equity |  US$3.053 billion (2024) |
|
Number of employees
|
c. 85,000 (February 2024) |
| Divisions | Best Buy Canada |
| Subsidiaries |
|
| Footnotes / references Financials as of February 3, 2024[update]. |
|
Best Buy Co., Inc. is a big American company that sells electronics. It's like a giant store where you can find everything from TVs and computers to phones and home appliances. The company started in 1966 as a small music store called Sound of Music.
Today, Best Buy has stores in the United States and Canada. It used to have stores in China and Mexico, but those have closed. Best Buy also owns other companies like Geek Squad, which helps fix computers and other tech.
Contents
The Story of Best Buy
How it All Started
On August 22, 1966, a man named Richard M. Schulze opened a store called Sound of Music. It was in St. Paul, Minnesota, and it sold fancy stereo systems. Schulze used his own savings and a loan from his house to open the first store.
The store did well, making $1 million in its first year. By 1969, there were three Sound of Music stores.
The "Tornado Sale" and a New Name
By 1978, Sound of Music had nine stores in Minnesota. In 1981, a tornado hit their biggest store in Roseville, Minnesota. The roof was ripped off, but the storage room was fine.
Schulze decided to have a "Tornado Sale" in the parking lot. He advertised "best buys" on everything. This sale made more money in four days than the store usually made in a month!
Because the sale was so successful, Sound of Music changed its name to Best Buy Company, Inc. in 1983. They also started selling home appliances and VCRs. The first Best Buy "superstore" opened in Burnsville, Minnesota. It was a huge store with low prices, just like the tornado sale. This new store made more money than all the other Best Buy stores combined in its first year.
Growing Bigger
Best Buy became a public company in 1985. This means people could buy shares of the company. Two years later, its shares were traded on the New York Stock Exchange.
In 1988, Best Buy changed its stores. They became brighter and put all products out on the sales floor. They also stopped paying salespeople a commission. This meant salespeople didn't push certain products, making shopping more relaxed. Some companies like Sony were upset at first, but they came back when Best Buy's sales grew.
By 1992, Best Buy was making $1 billion in sales each year. They kept making their stores better, adding "Answer Center" touchscreens and special areas to try out home theater systems.
In 1999, Best Buy became part of the S&P 500, which is a list of 500 large U.S. companies.
The 2000s: Expanding and New Services
Best Buy logo from August 1, 1989 until May 9, 2018, used in Canada until July 26, 2019
Former Best Buy Store located in Shanghai, China, now closed and merged with Five Star
|
In the early 2000s, Best Buy bought several other companies. In 2001, they bought Musicland, which owned stores like Sam Goody. They also bought Future Shop Ltd. in Canada, which helped them expand internationally.
In 2002, Best Buy bought Geek Squad, a company that fixes computers. Soon, every Best Buy store in America had a Geek Squad "precinct" where customers could get tech help.
Best Buy also started its "Reward Zone" loyalty program in 2003. This program gives special benefits to frequent shoppers. In 2005, they stopped using mail-in rebates and started giving instant discounts instead.
In 2006, Best Buy bought a big part of a Chinese appliance store called Jiangsu Five Star. In 2007, the first Best Buy store opened in Shanghai, China. Best Buy also started selling only digital TVs, getting ready for a new rule that all TVs had to be digital.
In 2008, Best Buy started selling musical instruments and became the first store to sell Apple's iPhone from a third party. They also bought Napster, a music service, and opened their first store in Mexico.
In 2009, Best Buy launched Best Buy Mobile stores, which focused only on cell phones.
The 2010s: Changes and Challenges
In 2010, Best Buy opened stores in the United Kingdom, but they all closed by 2012. In 2011, Best Buy closed its own-branded stores in China and merged them with Jiangsu Five Star.
Around 2012, Best Buy started changing its stores to a "Connected Store" format. This included a central Geek Squad desk and "store-within-a-store" sections for brands like Apple, Google, and Samsung.
In 2013, Best Buy left the European market. As more people started shopping online, Best Buy's sales faced challenges. The company began to focus more on online advertising.
In 2015, Best Buy closed its Future Shop stores in Canada. Some of these stores became Best Buy stores, while others closed permanently. In 2018, Best Buy also closed its smaller, standalone Best Buy Mobile stores in the U.S.
On May 9, 2018, Best Buy showed off a new logo for the first time in almost 30 years. In 2019, Corie Barry became the new CEO of Best Buy.
The 2020s: Adapting to New Times
During the COVID-19 pandemic, many people bought computers for remote work. Even with increased sales of some items, Best Buy had to make changes. In 2021, they laid off some employees.
In 2023, Best Buy announced that it would stop selling physical movies and TV shows (like DVDs and Blu-rays) in early 2024. This is because most people now stream movies online.
What Best Buy Does
Best Buy sells many kinds of electronics. This includes computers, video games, music, mobile phones, cameras, and car stereos. They also sell home appliances like washing machines and refrigerators. Salespeople at Best Buy don't work on commission, so they aren't pressured to sell you specific items.
The company's Geek Squad offers services like computer repair and help with warranties. Best Buy also has an online community where customers can ask questions and get answers about products.
Best Buy stores usually have light brown outsides with a blue box design at the entrance.
Best Buy's Own Brands
Best Buy also sells products under its own brand names. These are called "house brands."
- Dynex – Sells affordable electronics and computer items like cables and TVs.
- Init – Offers storage products like media storage and bags for equipment.
- Insignia – Sells electronics, small appliances, and accessories like TVs and mini-fridges.
- Magnolia Design Center (in some Best Buy stores) – Helps design and install custom home theater systems.
- Magnolia Home Theater (in some Best Buy stores) – Offers high-end home theater equipment like large TVs and speakers.
- Modal – Focuses on stylish mobile accessories like Bluetooth speakers and phone cases.
- Pacific Sales (in some Best Buy stores) – Sells high-end home appliances.
- Platinum – Best Buy's highest-quality house brand for items like cables and phone accessories.
- RocketFish – Sells cables for home theater setups and gaming accessories.
- RocketFish Mobile – Offers phone cases, chargers, and other mobile accessories.
Images for kids
-
A robot, representing technology.
See also
- Retail apocalypse
- List of retailers affected by the retail apocalypse
