Best Buy: Triggering global purchases
"The Best Buy Company, world's leading specialty retailer of consumer electronics, reported net earnings of $651 million, or $1.62 per diluted share, for its fiscal quarter as on Feb. 26, 2011 compared with $779 million, for the prior-year period. The These charges are consistent with the company's previously announced plans to restructure its international operations in order to enhance returns and to drive supply chain efficiencies in its Domestic segment.
It is an American retail chain that sells a range of consumer electronic goods. Apart from the US, the company also operates in Mexico, Canada, China, Turkey and the United Kingdom. There are more than 1,150 stores in the US, Puerto Rico, Canada, China, Mexico, and Turkey, and eight Best Buy stores in the UK. There are also retail outlets called Zoom Shops that are placed in malls and airports. The company is headquartered in Minnesota.
Internationally, Best Buy opened its first store in Shanghai. In the Chinese markets, Best Buy acquired a majority stake in the retail chain of Jiangsu Five Star Appliances. This was followed by a series of launches and mergers in various countries. Found in 1966 by Richard Schulze and James Wheeler, under the name, Sound of Music and later due to a tornado attack in the area and Sound of Music initiated a sale of its goods under the name Best Buy.
In 2004, the company was named "Company of the Year" by the Forbes magazine. The company hit the $1 billion mark in revenues in 1992. By acquiring Canada-based chain of Future Shop, the company gained entry to international markets it also acquired ?MusicLand' and launched an independent music label and sports video distributor company. Best Buy's rival company is Circuit City, and Fry's Electronics.
Best Buy is the largest retail company of mobile phones and houses various brands under its roof. The company witnessed a slight decline in its profits in 2011. However, it generated a profit of $651 million and revenues of $16.26 billion. The sales of electronic appliances weakened and the company's net income fell by 30%. There was a slowdown in the markets and fear about a global economic recession as consumers began spending less. In 2007, Best Buy launched the Greener Together campaign to increase the energy efficiency of its products and also to reduce wastage through recycling measures and correct disposal of electronic components.
With a plethora of electronic giants coming up, it remains to be seen if Best Buy can continue its leading position in the market in the years to come. Also, the fear of another economic recession is also pushing companies to reduce their expansion plans.