292,282 # of MP3s sold on Black Friday and Saturday LAST year 320,000 # of MP3s we’ll sell Black...

292,282# of MP3s sold on Black Friday and Saturday LAST year

320,000# of MP3s we’ll sell Black Friday and Saturday THIS year

+10%!!

295,000# of MP3s we’ll sell on Black Friday in 6 hours!!

598,696# of MP3s we sold December Wk 3 LAST year

(The Biggest Week of the Year)

900,000# of MP3s we’ll sell December Wk 3 THIS year

+50%!!

7.4M# of MP3s, Accessories, Headphones,

Speaker Docks sold LAST Holiday

8.4M# of MP3s, Accessories, Headphones, Speaker Docks we’ll sell THIS Holiday

+1 million units!!

30.0%Category Gross Profit Rate

Debra RussellDirector – MP3s, Accessories

Aaron TubbsTCED – Territory 5

We’re winning in the marketplace TODAY

Market Share Gains:– #1 Device share: 6th

consecutive month of gains

– #1 Accessory share: 11th consecutive month of gains

– #1 HPs/Speakers share: 5th consecutive month of gains

Ratio and Attach rates:– Highest EVER in all categories

Performance to Budget:– +8% YTD

• Complete solutions:– Bundles

– Integrated Accessories on Serp

– Breadth of accessory assortment

• Demonstrable experiences:– Test and try Devices, Speaker Docks,

Headphones

– Interactive displays: Beats by Dr. Dre, Bose , powered speakers

• You!– Knowledgeable associates

– TRUST

How will we win this Holiday?

Continue to offer our customers the best products, and the right solutions, to meet their

individual needs. TRUST

We’ll help you….Enjoy your entertainment whenever and wherever you want

iPods: All new assortment

Zune HD

Portable Entertainment Devices: Archos, Flo TV

Sony MP3 player with integrated Speaker

SanDisk Sansa + Slot Radio

We’ll help you….Maximize your experience

Beats by Dr. Dre Headphones: Lady Gaga and Solo

Bose QC15 noise canceling headphones (semi-exclusive)

New brands: Ultimate Ears, Sennheiser, Koss, Klipsch

We’ll help you….Experience the latest and greatest

Powered Endcaps (Serp/Table):– Featuring iPod Touch: #1 Revenue driver

– Featuring Beats by Dr. Dre +Lady Gaga

Serp/Table improvements– Excess fixtures removed to make room

for bundle merchandising

– Additional HPs/Spkrs on the Serp/Table

– Better signage: Benefits focused

Headphone expansion– 12 feet in almost all stores, closer to Devices

– Expanded Bose headphone interactive (QC15)

We’ll help you…Get the right solution

Promotions – Bundles

– Gift Card offers

Digital Solutions– Napster and iTunes: 2 great digital options

– New educational signage

Trade-In– “Green” initiative, opportunity to trade up

with trade-in

– Competitive differentiator

We’ll help you…..Release your inner DJ

DJ Lifestyle/Beats Strategy:– Build, enhance our relationship with Youth, while driving incremental traffic to our

stores and online channels

– Offer customers a backstage pass to the latest/greatest technology

– Create/OWN the DJ experience

– BBY as destination for best sound quality products

What to expect this holiday:– In-Store merchandising: DJ experience in all stores including DJ gear, Beats

Headphones, Accessories (experience varies by store)

– In-store events: DJ demos, GOs, Artist meet and greets (Dr. Dre, Lady Gaga)

– Marketing: TV spot (great gifts), Gift Guide, HD Loop

– Comprehensive training

Key Takeaways: The best products, the right solutions

Bundles are KEY to our Holiday success: Utilize best practices to make it easy for customers to grab and go

Enable Velocity - Devices are sold everywhere. Customers may not wait for someone to unlock them

Bulk stack larger high velocity items – Bose Sound Docks

Shippers (Bose and Sony): Place in high traffic areas to maximize sales

Create a game plan daily!

Develop your localized plan to deliver the biggest bang for the buck

Thank You!!