Best Buy Company Name

Best Buy Company Name

Best Buy is a successful multinational retailer, but have you ever wondered how the company got its name? A name is an essential part of any brand and has the power to make or break the business. In the case of Best Buy, the name contributed to the company`s ability to grow and prosper on the well-known name it is today. By 1969, the company had three stores and financial success meant richard Schultz could afford to buy his business partner. The company continued to grow in the following years, reaching a total of 9 stores across Minnesota in 1978. In 2000, Best Buy founded Redline Entertainment, an independent music label and action sports video rental company. [37] The Company acquired Magnolia Hi-Fi, Inc., an audio-video retailer based in California, Washington and Oregon, in December 2000. [29] It was also included in the U.S. Environmental Protection Agency`s list of the 50 largest buyers of green electricity. In 2011, the company purchased nearly 119 million kilowatt hours of green electricity – electricity from renewable resources such as wind, solar, geothermal, biogas, biomass and low-impact hydropower. [101] Of the 62 new Best Buy stores that opened in 2001, 15 were in the greater New York area. Manhattan`s first store opened the following year. In August 2000, Best Buy stores began selling KitchenAid-branded appliances through an agreement with Whirlpool Corporation.

Then Best Buy became similar to an acquisition. In December 2000, the company completed its first acquisition, which was made by Magnolia Hi-Fi, Inc. Privately held Magnolia, which was purchased for $88 million, was based in Seattle and operated 13 high-end consumer electronics stores in Washington, Oregon and California. (It takes its name from Seattle`s Magnolia neighborhood, where its first store was located.) The company has generated more than $100 million in annual revenue through the sale of audio, video and home theater products. Magnolia was founded in 1954 by Len Tweten, who has made the company one of the most respected audio-video retailers in the country due to the high quality of its products, its commitment to exceptional customer service and its famous in-house repair/installation department. At the time of the acquisition, Magnolia had won Audio/Video International magazine`s prestigious Retailer of the Year award for 22 consecutive years. Magnolia was led by Jim Tweten, the founder`s son, who continued to run the company as a standalone subsidiary of Best Buy. Best Buy hoped to leverage Magnolia`s experience as a retailer, targeting early adopters of new gadgets in particular, gaining strategies to maximize sales early in the product lifecycle as profits peaked. In the following fiscal year, another 47 stores were opened, bringing the total to 357 as the chain moved into major California markets in Sacramento, San Diego and San Francisco, as well as Richmond, Virginia. Best Buy also launched a new, smaller 30,000-square-foot format specifically designed for markets with fewer than 200,000 residents. Nine of these stores were opened in FY2000, and it was hoped that the new format would allow the company to continue to expand, even as penetration in large metropolitan areas approached saturation. Small stores should also serve as models for a planned move to densely populated urban markets like New York, where it would be impossible to build massive supermarkets.

Profit for fiscal 2000 increased by 60% to $347.1 million, and revenue increased sharply again to $12.49 billion. This led to a profit margin of 2.8%, well above the previous year`s figure of 1.1%. After the rebranding, Best Buy became stronger and stronger. It became a public company in 1985 and was listed on the New York Stock Exchange in 1987. In 1992, the company reached an exceptional milestone, achieving an annual turnover of $1 billion. Brian Dunn replaced Schulze as the company`s CEO in 2009, although Schulze remains active as the company`s CEO. Despite the completion of this acquisition, Best Buy continued to expand the Best Buy chain in Canada and opened eight stores in the Toronto area in the fall of 2002. The company seemed confident that it could successfully operate the two Canadian brands because of their distinctive features. Meanwhile, in July 2002, Schulze handed over his CEO role to Vice President Brad Anderson, who had also served as President and Chief Operating Officer since 1991 and had worked for the company since 1973. Schulze remained involved in the company he founded as CEO and continued to be the company`s largest shareholder with a stake of nearly 17%.