Best Buy Road Show PresentationOctober 2010
1
Safe Harbor Statement
Forward-Looking and Cautionary Statements
This presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the US Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect managementrsquos current views and estimates regarding future market conditions company performance and financial results business prospects new strategies the competitive environment and other events You can identify these statements by the fact that they use words such as ldquoanticipaterdquo ldquobelieverdquo ldquoestimaterdquo ldquoexpectrdquo ldquointendrdquo ldquoprojectrdquo ldquoplanrdquo ldquooutlookrdquo and other words and terms of similar meaning These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following general economic conditions acquisitions and development of new businesses divestitures product availability sales volumes pricing actions and promotional activities of competitors profit margins weather changes in law or regulations foreign currency fluctuation availability of suitable real estate locations the companyrsquos ability to react to a disaster recovery situation the impact of labormarkets and new product introductions on overall profitability failure to achieve anticipated benefits of announced transactions and integration challenges relating to new ventures A further list and description of these risks uncertainties and other matters can be found in Best Buyrsquos annual report and other filings made from time to time with the US Securities and Exchange Commission including but not limited to Best Buyrsquos Annual Report on Form 10-K filed with the SEC on April 28 2010 Management cautions that the foregoing list of important factors is not complete and assumes no obligation to update any forward-looking statement that it may
make
2
Store Counts
BEST BUYUS 1091
Turkey 2
Mexico 5
UK 3
China 8
Canada 70
GEEK SQUADStand-Alone Stores 5
BEST BUY MOBILEStand-Alone Stores US 109
Stand-Alone Stores Canada 6
FAMILY OF BRANDSThe Carphone Warehouse 2436
Five Star 159
Future Shop 145
Magnolia Audio Video 6
Pacific Sales 35
3
FY11 vs LY
Revenue Growth 29
Comp Growth (1) (01)
Gross Profit 257
SGampA 221
Operating Inc 36
EPS $060
Second Quarter Results
Strategic Results
(1) Domestic (14) International 43
Customer Satisfaction
Employee Retention
2nd Quarter Financial Performance
+130bps
+110bps
+62
gt70
gt84
Market Share ~(50bps)(30bps)
+380bps
4
Margin Expansion
Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps
Gross Margin strength has driven strong enterprise level Operating Income rate performance
5
Exciting product cycle for 2nd half
PlayStationreg
Move
6
How Does Best Buy Make Money in the Connected World
Accessories
Content
Services
Connections
Hardware=
7
Connections ndash High level business model
1B+ annual traffic to stores amp BBYcom
Blue shirt expertise and assistance
Millions in unit sales of connectable hardware
Significant opportunity to connect customers to
necessary video voice amp broadband solutions
Ongoing paymentBBY receives a portion of recurring monthly revenue
paid to carriers or entire monthly revenue paid directly to BBY (eg BBY Connect)
Bounty Model (majority)Portion of expected lifetime value of customer
is shared with BBY via an upfront bounty
Through helping customers solve their Connected World needs Best Buy is positioned as an extremely valuable customer acquisition engine for carrier partners
Resulting in economics shared
with BBY
8
Connections ndash Examples
New Customer or Upgrade
Wireless Broadband
Mobile Phone Contracts
Faster Home Connection
9
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Safe Harbor Statement
Forward-Looking and Cautionary Statements
This presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the US Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect managementrsquos current views and estimates regarding future market conditions company performance and financial results business prospects new strategies the competitive environment and other events You can identify these statements by the fact that they use words such as ldquoanticipaterdquo ldquobelieverdquo ldquoestimaterdquo ldquoexpectrdquo ldquointendrdquo ldquoprojectrdquo ldquoplanrdquo ldquooutlookrdquo and other words and terms of similar meaning These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following general economic conditions acquisitions and development of new businesses divestitures product availability sales volumes pricing actions and promotional activities of competitors profit margins weather changes in law or regulations foreign currency fluctuation availability of suitable real estate locations the companyrsquos ability to react to a disaster recovery situation the impact of labormarkets and new product introductions on overall profitability failure to achieve anticipated benefits of announced transactions and integration challenges relating to new ventures A further list and description of these risks uncertainties and other matters can be found in Best Buyrsquos annual report and other filings made from time to time with the US Securities and Exchange Commission including but not limited to Best Buyrsquos Annual Report on Form 10-K filed with the SEC on April 28 2010 Management cautions that the foregoing list of important factors is not complete and assumes no obligation to update any forward-looking statement that it may
make
2
Store Counts
BEST BUYUS 1091
Turkey 2
Mexico 5
UK 3
China 8
Canada 70
GEEK SQUADStand-Alone Stores 5
BEST BUY MOBILEStand-Alone Stores US 109
Stand-Alone Stores Canada 6
FAMILY OF BRANDSThe Carphone Warehouse 2436
Five Star 159
Future Shop 145
Magnolia Audio Video 6
Pacific Sales 35
3
FY11 vs LY
Revenue Growth 29
Comp Growth (1) (01)
Gross Profit 257
SGampA 221
Operating Inc 36
EPS $060
Second Quarter Results
Strategic Results
(1) Domestic (14) International 43
Customer Satisfaction
Employee Retention
2nd Quarter Financial Performance
+130bps
+110bps
+62
gt70
gt84
Market Share ~(50bps)(30bps)
+380bps
4
Margin Expansion
Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps
Gross Margin strength has driven strong enterprise level Operating Income rate performance
5
Exciting product cycle for 2nd half
PlayStationreg
Move
6
How Does Best Buy Make Money in the Connected World
Accessories
Content
Services
Connections
Hardware=
7
Connections ndash High level business model
1B+ annual traffic to stores amp BBYcom
Blue shirt expertise and assistance
Millions in unit sales of connectable hardware
Significant opportunity to connect customers to
necessary video voice amp broadband solutions
Ongoing paymentBBY receives a portion of recurring monthly revenue
paid to carriers or entire monthly revenue paid directly to BBY (eg BBY Connect)
Bounty Model (majority)Portion of expected lifetime value of customer
is shared with BBY via an upfront bounty
Through helping customers solve their Connected World needs Best Buy is positioned as an extremely valuable customer acquisition engine for carrier partners
Resulting in economics shared
with BBY
8
Connections ndash Examples
New Customer or Upgrade
Wireless Broadband
Mobile Phone Contracts
Faster Home Connection
9
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Store Counts
BEST BUYUS 1091
Turkey 2
Mexico 5
UK 3
China 8
Canada 70
GEEK SQUADStand-Alone Stores 5
BEST BUY MOBILEStand-Alone Stores US 109
Stand-Alone Stores Canada 6
FAMILY OF BRANDSThe Carphone Warehouse 2436
Five Star 159
Future Shop 145
Magnolia Audio Video 6
Pacific Sales 35
3
FY11 vs LY
Revenue Growth 29
Comp Growth (1) (01)
Gross Profit 257
SGampA 221
Operating Inc 36
EPS $060
Second Quarter Results
Strategic Results
(1) Domestic (14) International 43
Customer Satisfaction
Employee Retention
2nd Quarter Financial Performance
+130bps
+110bps
+62
gt70
gt84
Market Share ~(50bps)(30bps)
+380bps
4
Margin Expansion
Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps
Gross Margin strength has driven strong enterprise level Operating Income rate performance
5
Exciting product cycle for 2nd half
PlayStationreg
Move
6
How Does Best Buy Make Money in the Connected World
Accessories
Content
Services
Connections
Hardware=
7
Connections ndash High level business model
1B+ annual traffic to stores amp BBYcom
Blue shirt expertise and assistance
Millions in unit sales of connectable hardware
Significant opportunity to connect customers to
necessary video voice amp broadband solutions
Ongoing paymentBBY receives a portion of recurring monthly revenue
paid to carriers or entire monthly revenue paid directly to BBY (eg BBY Connect)
Bounty Model (majority)Portion of expected lifetime value of customer
is shared with BBY via an upfront bounty
Through helping customers solve their Connected World needs Best Buy is positioned as an extremely valuable customer acquisition engine for carrier partners
Resulting in economics shared
with BBY
8
Connections ndash Examples
New Customer or Upgrade
Wireless Broadband
Mobile Phone Contracts
Faster Home Connection
9
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
FY11 vs LY
Revenue Growth 29
Comp Growth (1) (01)
Gross Profit 257
SGampA 221
Operating Inc 36
EPS $060
Second Quarter Results
Strategic Results
(1) Domestic (14) International 43
Customer Satisfaction
Employee Retention
2nd Quarter Financial Performance
+130bps
+110bps
+62
gt70
gt84
Market Share ~(50bps)(30bps)
+380bps
4
Margin Expansion
Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps
Gross Margin strength has driven strong enterprise level Operating Income rate performance
5
Exciting product cycle for 2nd half
PlayStationreg
Move
6
How Does Best Buy Make Money in the Connected World
Accessories
Content
Services
Connections
Hardware=
7
Connections ndash High level business model
1B+ annual traffic to stores amp BBYcom
Blue shirt expertise and assistance
Millions in unit sales of connectable hardware
Significant opportunity to connect customers to
necessary video voice amp broadband solutions
Ongoing paymentBBY receives a portion of recurring monthly revenue
paid to carriers or entire monthly revenue paid directly to BBY (eg BBY Connect)
Bounty Model (majority)Portion of expected lifetime value of customer
is shared with BBY via an upfront bounty
Through helping customers solve their Connected World needs Best Buy is positioned as an extremely valuable customer acquisition engine for carrier partners
Resulting in economics shared
with BBY
8
Connections ndash Examples
New Customer or Upgrade
Wireless Broadband
Mobile Phone Contracts
Faster Home Connection
9
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Margin Expansion
Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps
Gross Margin strength has driven strong enterprise level Operating Income rate performance
5
Exciting product cycle for 2nd half
PlayStationreg
Move
6
How Does Best Buy Make Money in the Connected World
Accessories
Content
Services
Connections
Hardware=
7
Connections ndash High level business model
1B+ annual traffic to stores amp BBYcom
Blue shirt expertise and assistance
Millions in unit sales of connectable hardware
Significant opportunity to connect customers to
necessary video voice amp broadband solutions
Ongoing paymentBBY receives a portion of recurring monthly revenue
paid to carriers or entire monthly revenue paid directly to BBY (eg BBY Connect)
Bounty Model (majority)Portion of expected lifetime value of customer
is shared with BBY via an upfront bounty
Through helping customers solve their Connected World needs Best Buy is positioned as an extremely valuable customer acquisition engine for carrier partners
Resulting in economics shared
with BBY
8
Connections ndash Examples
New Customer or Upgrade
Wireless Broadband
Mobile Phone Contracts
Faster Home Connection
9
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Exciting product cycle for 2nd half
PlayStationreg
Move
6
How Does Best Buy Make Money in the Connected World
Accessories
Content
Services
Connections
Hardware=
7
Connections ndash High level business model
1B+ annual traffic to stores amp BBYcom
Blue shirt expertise and assistance
Millions in unit sales of connectable hardware
Significant opportunity to connect customers to
necessary video voice amp broadband solutions
Ongoing paymentBBY receives a portion of recurring monthly revenue
paid to carriers or entire monthly revenue paid directly to BBY (eg BBY Connect)
Bounty Model (majority)Portion of expected lifetime value of customer
is shared with BBY via an upfront bounty
Through helping customers solve their Connected World needs Best Buy is positioned as an extremely valuable customer acquisition engine for carrier partners
Resulting in economics shared
with BBY
8
Connections ndash Examples
New Customer or Upgrade
Wireless Broadband
Mobile Phone Contracts
Faster Home Connection
9
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
How Does Best Buy Make Money in the Connected World
Accessories
Content
Services
Connections
Hardware=
7
Connections ndash High level business model
1B+ annual traffic to stores amp BBYcom
Blue shirt expertise and assistance
Millions in unit sales of connectable hardware
Significant opportunity to connect customers to
necessary video voice amp broadband solutions
Ongoing paymentBBY receives a portion of recurring monthly revenue
paid to carriers or entire monthly revenue paid directly to BBY (eg BBY Connect)
Bounty Model (majority)Portion of expected lifetime value of customer
is shared with BBY via an upfront bounty
Through helping customers solve their Connected World needs Best Buy is positioned as an extremely valuable customer acquisition engine for carrier partners
Resulting in economics shared
with BBY
8
Connections ndash Examples
New Customer or Upgrade
Wireless Broadband
Mobile Phone Contracts
Faster Home Connection
9
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Connections ndash High level business model
1B+ annual traffic to stores amp BBYcom
Blue shirt expertise and assistance
Millions in unit sales of connectable hardware
Significant opportunity to connect customers to
necessary video voice amp broadband solutions
Ongoing paymentBBY receives a portion of recurring monthly revenue
paid to carriers or entire monthly revenue paid directly to BBY (eg BBY Connect)
Bounty Model (majority)Portion of expected lifetime value of customer
is shared with BBY via an upfront bounty
Through helping customers solve their Connected World needs Best Buy is positioned as an extremely valuable customer acquisition engine for carrier partners
Resulting in economics shared
with BBY
8
Connections ndash Examples
New Customer or Upgrade
Wireless Broadband
Mobile Phone Contracts
Faster Home Connection
9
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Connections ndash Examples
New Customer or Upgrade
Wireless Broadband
Mobile Phone Contracts
Faster Home Connection
9
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Services - examples
Services bullUp-frontbullMonthly
10
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Content ndash Examples
New Customer or Upgrade
11
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Holiday Store Activities
bull Primary goalndash Better optimization of the space within the entertainment
areabull Reduce the space dedicated to physical music amp movies with the first
meaningful reduction since the shift to digital music
ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs
bull Give more space to gaminghellip
ndash To provide the in store environment to experience new motion based gaming launches
ndash To assort pre-owned video games
bull Free up space for expanded BBY Mobile SWAS
bull Free up space for eReaders and Gadgets
12
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Holiday Store Activities - responds to the continued declines in physical media
20102007
Use the space for growth opportunities
Significantly reduce the space dedicated to physical music amp movies this year
Center of Store in
typical 45k format
13
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Holiday Store Activities - BBY Mobile SWAS expansion
Current Format of over 150 SWAS locations by holiday
bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution
14
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
Holiday Store Activities - Used Gaming
bull Game trade in amp pre-owned games will be in nearly all stores before Holiday
bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk
bull Customer receives a BBY gift card that can be used for anything in the store
15
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