About Best Buy

Best Buy Co., Inc. provides technology products and solutions in the U.S. and Canada. Segments and Geographic Areas The company operates through two segments: Domestic and International. The Domestic segment consists of the company’s operations in all states, districts and territories of the U.S. and its Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen and Home, TechLiquidators and Yardbird and the domain names bestbuy.com, currenthealth.com, lively.com, techliquidators.com and yardbird.com. International segment consists of all operations in Canada under the brand names Best Buy, Best Buy Mobile and Geek Squad and the domain name bestbuy.ca. In fiscal 2022, the company acquired all of the outstanding shares of Current Health Ltd. (Current Health) and Two Peaks, LLC, doing business as Yardbird Furniture (Yardbird). Operations The company’s Domestic and International segments are managed by leadership teams responsible for all areas of the business. Both segments operate an omnichannel platform that allows customers to come to the company online, visit its stores or invite it into their homes. Development of merchandise and service offerings, pricing and promotions, procurement and supply chain, online and mobile application operations, marketing and advertising and labor deployment across all channels are centrally managed. The company has field operations that support retail, services and in-home teams from its corporate headquarters and regional locations. The company’s Best Buy Health business has a dedicated leadership team and operations team. The Best Buy Health leadership team manages the day-to-day affairs of all aspects of its business, while receiving support from certain Best Buy enterprise capabilities. Merchandise and Services The company’s Domestic and International segments have offerings in six revenue categories. The key components of each revenue category are as follows: Computing and Mobile Phones - Computing (including desktops, notebooks and peripherals), mobile phones (including related mobile network carrier commissions), networking, tablets (including e-readers) and wearables (including smartwatches); Consumer Electronics - Digital imaging, health and fitness products, home theater, portable audio (including headphones and portable speakers) and smart home; Appliances - Large appliances (including dishwashers, laundry, ovens and refrigerators) and small appliances (including blenders, coffee makers and vacuums); Entertainment - Drones, gaming (including hardware, peripherals and software), movies, music, toys, virtual reality and other software; Services - Consultation, delivery, design, health-related services, installation, memberships, repair, set-up, technical support and warranty-related services; and Other - Other product offerings, including baby, food and beverage, luggage, outdoor living and sporting goods. Distribution Customers within the company’s Domestic and International segments who purchase product online have the choice to pick up product at a Best Buy store (including curbside pick-up for select products at most Domestic stores), at an alternative pick-up location or take delivery direct to their homes. Suppliers and Inventory In fiscal 2023, the company’s 20 largest suppliers accounted for approximately 79% of the merchandise it purchased, with five suppliers – Apple, Samsung, HP, LG and Sony – representing approximately 57% of total merchandise purchased. Store Development The company’s stores are a vital component of its omnichannel strategy. The company also has vendor store-within-a-store concepts to allow closer vendor partnerships and a higher quality customer experience. The company continuously looks for opportunities to optimize its store space, renegotiate leases and selectively open or close locations to support its operations. Intellectual Property The company owns or has the right to use valuable intellectual property, such as trademarks, service marks and trade names, including but not limited to, Best Buy, Best Buy Ads, Best Buy Essentials, Best Buy Health, Best Buy Mobile, Best Buy Totaltech, CST, Current Health, Dynex, Geek Squad, Insignia, Jitterbug, Lively, Magnolia, Modal, My Best Buy, Pacific Kitchen and Home, Pacific Sales, Platinum, Rocketfish, TechLiquidators, Yardbird and its Yellow Tag logo. The company has secured domestic and international trademark and service mark registrations for many of its brands. The company has also secured patents for many of its inventions. Seasonality The company’s business, like that of many retailers, is seasonal. A large proportion of the company’s revenue and earnings is generated in the fiscal fourth quarter (year ended January 28, 2023), which includes the majority of the holiday shopping season. History Best Buy Co., Inc. was founded in 1966. The company was incorporated in the state of Minnesota in 1966.