
2/11

Best Buys Multi Channel Advantage

Customers are increasingly using a combination of digital & physicalchannels to urchase technolo roducts and services

Best Buy has the best and broadest capabilities across multiplechannels to service our customers

Confidential Do Not Disseminate or Copy

Best Buy Dot.com Physical Stores In-Home Service m.dot 1-888-BESTBUY

Best Buy Customers Are Shopping With a Multi Channel Approach

~60% of instore purchasers researched on bestbuy.com

~40% of what's purchased on line is picked up instore

BBY Domestic online revenue tripled in the last 5 years (25% CAGR)BBY Domestic online revenue $2B in FY11

F06 F07 F08 F09 F10 F11Domestic dotcom revenue

Source: BBY internal data


3/11

Best Buys Online and Total Traffic Are Growing

1.4B Total Best Buy Traffic

800M

Stores Traffic

Online Traffic(Dotcom and m.dot)

FY11FY05 FY10FY09FY08FY07FY06

SOURCE: Internal Best Buy data

No free shipping No promotions, discounts or other rewards

Price related

Customer Preferences Support Multi Channel Growth

REASONS CITED FOR NONCONVERSION (Q4 2010)

Did not offer item sought Available in store only Not available for store pickup Not available for shipping to my location

Want to see in person Want immediately Shipping/delivery takes too long

Navigation /

Convenience

Assortment / selection related

19 %

21 %

Hard to navigate website Checkout process too complicated Not ready to buy/browsing Needed more information

Other

usability

21 %

8%

Q11. Which of the following, if any, are reasons why you did not purchase category at BestBuy.com? All reasons.SOURCE: ComScore


4/11

Traditional ecommerceA wide assortment of product & services on BestBuy.com

Expanding Our Online Business Model for Aggressive Growth

Cross Channel Experiences

Marketplace Allow external vendors and retailers to sell

throu h our channels

Combine unique strengths of each channel (online, stores, phone, home) to maximize the customer experience

Partnerships

Ad Models

Extend our reach by allowing partners to market

Best Buy

products

&

Services

Leverage Best Buys traffic to sell advertising

Expanding ECommerce and Multi Channel Capabilities

Expanded online only assortment Sharpen price and price impression Kiosks and product finders in stores Online returns and exchanges in store

Online local store inventory checks Store pickup Friends & family pickup Ship to store

Mobile commerce Mobile apps Twelpforce


5/11

Launching New Business Models to Accelerate Growth

Marketplace

An open marketplace for retailers and manufacturers to expand product assortment

Partnerships Affiliate partners who want to provide access

to Best Buy products and services as a benefit to their own customers

Ad modelsMonetizing traffic through ad revenue

(Best Buy On, Google Ad Sense)

Grow BBY.Com throu h ex anded assortment and

Best Buys

Online

Channel

Growth

Goals

Multi Channel Approach

sharpened pricing

Increase frequency of customer interactions with our

brand through

partnerships,

ad

models

and

Improved convenience for customers with physical and digital options: store pick up plus, mobile commerce and apps

marketplace

Double Best Buys Online Revenue in 35 Years


6/11

Evolving Our Store Portfolio

Online Platform for

Growth

The U.S.

Store

Portfolio

9231023

1069 1099 ~1106

357 419

481548

608668

742822

~325

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

5 9 3874

14 19 34 35 35 35

BBY Stores Best Buy Mobile SAS Pacific Sales SAS


7/11

Domestic Big Box: Square Footage

45.4 4618%

Square Footage Growth and Average Store Size

38.540

42

44

8%

10%

12%

14%

16%

S t o r e

S i z e

( 0 0 0 )

o o

t a g e

G r o w

t h

Average Size Sq Ft Growth

34

36

0%

2%

4%

F00 F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12

A v e r a g e

S q u a r e

Evolving Our Store Portfolio

Small Box Big Box

Add New Value Propositions

Develop Connected Store Op ModelBBY Mobile

PAC SAS

Improve Low Revenue Op ModelExpress Kiosks


8/11

Connected Store Pilot Drives Op Model Evolution

Employee Experience Customer Experience Store Environment

Provide our blue shirts an Demonstrate the possibility of Design new store prototype mprove ac rop an operating model to showcase our employees talents and drive

a differentiated customer shopping experience

ec no ogy roug n erac ve displays, knowledgeable employees and connecting the

digital and physical shopping experience

creating an open and flexible environment that allows us to

adapt to technology and customer needs

Connecting the Digital & Physical Shopping Experience

New 32 touch screen kiosks an

interactive experience

InStore Pickup Plus

Dedicated Phone Operators 20+ applications are available for customers and employees

BestBuy.com is the number one used application

Revamped Services Precinct


9/11

Connected Store

Update

Employee Experience Customer Experience Store Environment

Engaging Experience Reengineered operating model

Establishing Career

Sales

A Market Place of Choice Runway & Technology Stages

Prominence of

BBYM

,Tablets,

Increased Productivity Reduced Size Increased Flexibility

positions Advanced training, tools &

processes

Gaming Dedicated MutliChannel Dept.

Greener


10/11

New Value Proposition Additions

Best Buy MobileBest Buy Mobile

Trade in & Pre owned Gaming

Tablet Central

Trade in and Pre owned Gaming

Pacific Sales SWASPacific Sales SWAS

Improve Low

Revenue

Operating

Model

Lower revenue stores with lower than average 4wall profitability

oo cause s an opera ng mo e es gne or g er sales velocity

Targeting SG&A reduction and margin rate enhancements through:

e ca e ea ers p eam Revised labor model and operating procedures Tailored assortment and promotional plans


11/11

Reduce Total

Square

Footage

of

U.S.

Big

Box Stores by ~10% over 35 Years:

Best Buys Store Portfolio Goals

xpec e o resu n o re uce annual occupancy costs

Sublease opportunities Relocation to smaller locations Renegotiate lower square foot costs

Increasing Points Of Presence While Reducing Overall Square Footage

3 Best Buy 2011 Analyst Day Multi-Channel Strategy

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