Best Buy Co. Inc. (Minneapolis) announced plans to raise its total potential for stores in North America by 20 percent, expand its stand-alone Geek Squad stores and open lab stores in China in the next 12 to 18 months.
In an announcement of its long-term strategy, the consumer electronics, home-office products, entertainment software and appliances retailer said it plans to operate at least 1200 superstores in North America, up from its prior growth plan of 1000 superstores. This new total assumes approximately 200 Canadian superstores (including both Future Shop and Best Buy stores) and approximately 1000 U.S. Best Buy superstores.
Best Buy currently operates 838 stores in North America and typically opens 75 new stores per year in that footprint. The company expects the majority of the additional new store openings to be 20,000-square-foot locations, which can be deployed in smaller markets, in metropolitan areas and between larger stores in suburban areas.
In addition to its store expansion plans, the retailer aims to expand its services offerings by opening 20 to 50 stand-alone Geek Squad stores in urban areas over the next 12 to 18 months. In fiscal 2005, the company launched Geek Squad services at all North American Best Buy stores and tested five stand-alone Geek Squad stores in three markets. Geek Squad stores offer rapid-response technology support, including virus removal, network repair and installation, data recovery and data transfer; services and repairs; and software and accessories
“Expanding and enhancing our services offering is one of our top goals for the company,” said Brad Anderson, vice chairman and ceo of Best Buy. “We know that more consumers are storing their photos, music, home videos and games on their computers. As their computer-based content becomes more important to them, so do the services that help them enjoy and protect that content.”
Looking abroad, Best Buy said vice chairman Al Lenzmeier, along with a team of senior executives, will lead both the services expansion and the international expansion into China. According to Lenzmeier, local leaders who have strong customer insights will be hired to manage the lab stores. The lab stores will be opened and operated as a way to accelerate learning about the diverse consumers in China.