THE BUSINESSWEEK 50 RANKINGS + 25

32

Best Buy

As electronics prices fall fast, Best Buy is bent on remaking itself as a purveyor of experiences. So rather than simply buying a TV, say, customers can rely on Best Buy’s “blue shirts” to help them design home entertainment systems. The sales staff can act as personal tech consiglieri, handling everything from which products best meet the customers’ needs, to delivery and setup, to hookups with a digital source. It all flows out of CEO Brad Anderson’s sweeping and costly innovation program called “customer centricity.” The program encourages those blue shirts on the floor to listen to customers’ needs and turn what they’ve heard into new business ideas. Empowerment is so much in the air that this year Best Buy is launching a pilot that will enable store workers to make their own schedules. The idea takes its cues from Best Buy’s corporate headquarters, a clockless office where there are no schedules, no meetings, and no rules about how and when to get work done.

Overall Grade

A

Market Data

BBY

Market Value
(2/28/2007)

$22.4 Billion

Profitability*

31.9%

A-

Sales Growth Rate**

13.1%

B

12-Month Sales

$33.7 Billion

12-Month Net Income

$1.3 Billion

Total Return Past 12 Months

-13.1%

Past 36 Months

33.8%

Economic SectorConsumer Discretionary
IndustryComputer & Electronics Retail
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
$FOOTNOTE

Bradbury H. (Brad)  Anderson

Bradbury H. (Brad) Anderson

CEO since 2002


The BW 50 + 25 Interactive Scoreboard

More BW Stories on Best Buy


More BW50 Profiles






Data as of 2/28/07 provided by Standard & Poor's Compustat