History of Best Buy in Timeline
Best Buy, a major American consumer electronics retailer, is headquartered in Richfield, Minnesota. Founded in 1966 by Richard M. Schulze and James Wheeler, it was initially called Sound of Music and focused on audio equipment. The company shifted its emphasis to consumer electronics and adopted the name Best Buy in 1983.
August 22, 1966: First Sound of Music Store Opens
Richard M. Schulze, with a business partner, opened the first Sound of Music store in St. Paul, Minnesota on August 22, 1966, specializing in high-fidelity stereos.
1966: Sound of Music Founded
Richard M. Schulze and James Wheeler founded Sound of Music in 1966, an audio specialty store that would later become Best Buy.
1967: Sound of Music Expands
Sound of Music acquired Kencraft Hi-Fi Company and Bergo Company in 1967.
1969: Schulze Becomes Sole Owner
By 1969, Sound of Music had expanded to three stores, and Richard M. Schulze bought out his business partner, becoming the sole owner.
1978: Sound of Music's Growth
Sound of Music expanded to nine stores throughout Minnesota by 1978.
1981: The Tornado Sale
When Sound of Music's largest store was hit by a tornado in 1981, Schulze organized a "Tornado Sale" of damaged and excess stock, which proved to be a huge success and influenced Best Buy's future pricing strategy.
1983: Best Buy Superstore Launches
Following the success of the "Tornado Sale", Best Buy opened its first superstore in Burnsville, Minnesota in 1983, pioneering a high-volume, low-price business model.
1983: Best Buy is Born
Sound of Music was rebranded as Best Buy in 1983, shifting its focus to consumer electronics.
1985: Best Buy Goes Public
Best Buy went public in 1985 and was listed on the New York Stock Exchange two years later.
1988: Concept II and Commission-Free Sales
Best Buy introduced the "Concept II" store design in 1988, featuring a brighter layout and a no-commission sales approach, a move that initially faced pushback from some suppliers.
1988: Circuit City's Rejected Offer
In 1988, during a period of intense competition, Schulze attempted to sell Best Buy to Circuit City for US$30 million. Circuit City declined the offer.
1992: Best Buy Reaches $1 Billion in Revenue
Best Buy achieved $1 billion in annual revenues in 1992.
1993: Highland Superstores Closes
Best Buy's Midwest rival, Highland Superstores, closed all of its locations by 1993 after filing for bankruptcy the previous year.
1994: Concept III Stores Debut
Best Buy introduced "Concept III" stores in 1994, featuring larger layouts, expanded product offerings, touchscreen kiosks, and product demonstration areas.
1998: Concept IV Stores Launch
Best Buy launched "Concept IV" stores in 1998, featuring an open layout, cash registers throughout the store, and dedicated areas for home theater and computer software demonstrations.
1999: Best Buy Joins S&P 500
Best Buy was added to the Standard & Poor's S&P 500 index in 1999.
December 2000: Magnolia Hi-Fi Acquired
Best Buy acquired Magnolia Hi-Fi, an audio-video retailer based in California, Washington, and Oregon, in December 2000.
2000: Best Buy Settles Lawsuit Over Extended Warranty Practices
In 2000, Best Buy faced a lawsuit from two consumers in Florida who alleged the company used deceptive sales tactics related to extended warranties. The lawsuit claimed that employees misrepresented manufacturer warranties to push their own service plans and employed high-pressure sales techniques. While denying any wrongdoing, Best Buy settled the lawsuit for $200,000.
January 2001: Musicland Stores Acquired
Best Buy acquired Musicland Stores Corporation in January 2001 for $425 million and the assumption of $271 million of Musicland's debt.
July 2002: New CEO: Brad Anderson
Brad Anderson became the CEO of Best Buy in July 2002, succeeding Richard Schulze.
2003: Expansion and Divestment
In 2003, Best Buy opened its first global-sourcing office in Shanghai and divested itself of Musicland in a deal with Sun Capital Partners.
January 2004: Best Buy Revamps Website and Online Content
In January 2004, Best Buy hired Virtucom Group to revamp its website and manage all online content.
April 2005: Best Buy Eliminates Mail-in Rebates
In April 2005, Best Buy started phasing out mail-in rebates due to negative customer feedback, opting for instant rebates via notebooks instead.
May 2006: Best Buy Acquires Majority Stake in Jiangsu Five Star Appliance
Best Buy acquired a majority interest in Chinese appliance retailer Jiangsu Five Star Appliance for $180 million in May 2006. Jiangsu was the fourth-largest appliance chain in China at the time.
January 2007: First Best Buy Store Opens in China
January 2007 marked the grand opening of the first Best Buy-branded store in Shanghai, China.
March 2007: Best Buy Acquires Speakeasy
In March 2007, Best Buy acquired Seattle-based broadband, data, and IT services provider Speakeasy for $80 million.
October 2007: Best Buy First to Exclusively Offer Digital Televisions
By October 2007, Best Buy became the first consumer electronics retailer to stop selling analog televisions, offering only digital products ahead of the FCC's June 2009 mandate.
December 2007: Best Buy Investigated for Misleading In-Store Website Pricing
In December 2007, the Los Angeles Times reported on allegations that Best Buy's in-store website kiosks misled customers regarding sales prices. Some customers believed they were accessing the online Best Buy website (bestbuy.com) but later discovered that the kiosks only displayed in-store prices, which might differ. Best Buy responded that these kiosks were not intended for price matching but for checking in-store product availability. Following the investigation, Best Buy added a banner to the in-store website to clarify the pricing difference to its customers.
2007: Greenpeace Report Criticizes Best Buy's Sourcing Practices
In 2007, a Greenpeace report identified Best Buy as one of several companies sourcing raw materials or finished products from logging companies believed to be engaged in unsustainable logging practices in Canada's boreal forests.
February 2008: First Best Buy Store Opens in Puerto Rico
February 2008 saw the opening of the first Best Buy store in San Juan, Puerto Rico.
April 26, 2008: Best Buy Fined by FCC Over Digital TV Transition Disclosures
On April 26, 2008, the U.S. Federal Communications Commission (FCC) imposed a $280,000 fine on Best Buy for failing to adequately inform customers that the analog televisions they sold would not receive over-the-air broadcasts after the digital television transition on June 12, 2009.
May 2008: Best Buy Challenges FCC Fine
Best Buy contested the FCC's ruling and fine in May 2008, asserting that they were and continued to be in compliance with the FCC's regulations concerning the digital television transition.
July 2008: Best Buy Ventures into Musical Instrument Sales
Best Buy made a move into the musical instruments market in July 2008, offering instruments and related gear in over 80 stores, becoming the second-largest musical instrument distributor in the U.S.
February 2009: Best Buy Mobile Launches
February 2009 marked the launch of Best Buy Mobile, a Best Buy-branded mobile retailer. This venture was a partnership with The Carphone Warehouse.
June 2009: Brian J. Dunn Becomes Best Buy CEO
Brian J. Dunn was appointed as Best Buy's CEO in June 2009, succeeding Brad Anderson, who announced his retirement.
November 2009: Best Buy Launches On-Demand Streaming Service
Best Buy, in partnership with Roxio's CinemaNow, launched an on-demand streaming service in November 2009, allowing streaming from any Best Buy-sold internet device.
December 2009: First Best Buy Store Opens in Turkey
Best Buy expanded its global presence with the opening of its first Turkish store in Izmir in December 2009.
2009: Best Buy Launches Recycling Program
In an effort to enhance its public image and address past environmental concerns, Best Buy introduced a recycling program in 2009. This program allows customers to bring their used electronics and e-waste to any Best Buy store for a small fee, and the collected items are then given to certified recyclers in the U.S. for responsible processing.
April 2010: Best Buy Opens First UK Store
In April 2010, Best Buy opened its first UK-based store in Thurrock. The company would eventually open 11 stores in the UK, all of which closed in early 2012.
April 2010: Class Action Lawsuit Filed Against Best Buy Over Unsolicited Calls
In April 2010, a class-action lawsuit was filed against Best Buy by consumers who alleged the company violated the Telephone Consumer Protection Act by making unsolicited phone calls.
February 2011: Best Buy Closes Stores in China, Merges with Jiangsu Five Star
Best Buy closed all its branded stores in China by February 2011, opting to merge its China operations with Jiangsu Five Star, which had become a fully owned Best Buy subsidiary in 2009.
February 2011: Best Buy Exits China
Best Buy ceased its operations in China in February 2011, merging its Chinese faction with Five Star.
2011: Best Buy Recognized for Green Power Purchases
Best Buy was included in the U.S. Environmental Protection Agency's top 50 list of the largest purchasers of green power in 2011. The company procured nearly 119 million kilowatt-hours of green power, which refers to electricity derived from renewable energy sources such as wind, solar, geothermal, biogas, biomass, and low-impact hydropower.
April 2012: Brian Dunn Resigns as CEO
Brian Dunn resigned from his position as Best Buy CEO in April 2012 amidst an internal investigation into misconduct allegations related to an inappropriate relationship with a female employee.
May 2012: Richard Schulze Resigns as Chairman
An internal investigation in May 2012 revealed that Best Buy founder and chairman Richard Schulze was aware of Dunn's inappropriate relationship but did not inform the board, leading to his resignation.
September 2012: Hubert Joly Becomes CEO
Hubert Joly, former CEO of hospitality conglomerate Carlson, took over as Best Buy CEO in September 2012.
2012: Best Buy Withdraws from Europe
Best Buy ended its operations in Europe in 2012.
2012: Best Buy Announces "Transformation Strategy"
In 2012, to combat declining revenues, Best Buy announced a "transformation strategy." This included a redesigned "Connected Store" format, a centralized Geek Squad service desk, and a "store-within-a-store" concept for Pacific Kitchen & Bath and Magnolia Design Center.
April 2013: Best Buy Exits European Market
Best Buy withdrew from the European market in April 2013, selling its stake in the business back to its partner, Carphone Warehouse.
April 2013: Best Buy Exits European Market
In April 2013, Best Buy sold its 50% stake in The Carphone Warehouse back to the UK-based mobile phone retailer for $775 million, marking its exit from the European consumer electronics market.
June 30, 2014: Best Buy Sales Decline for 10th Consecutive Quarter
The rise of online shopping continued to impact Best Buy, with a 4% sales dip for the quarter ending June 30, 2014, marking the 10th consecutive quarter of sales decline. Best Buy announced a shift towards digital media marketing.
2014: Best Buy Settles Class Action Lawsuit Over Unsolicited Calls
In 2014, Best Buy reached a $4.55 million settlement in the class-action lawsuit filed in April 2010. The lawsuit alleged that the company had violated the Telephone Consumer Protection Act by making unsolicited phone calls to consumers.
March 28, 2015: Best Buy Shuts Down Future Shop Chain in Canada
Best Buy announced the closure of its Future Shop chain in Canada on March 28, 2015, converting 65 of its 131 locations into Best Buy stores and permanently closing the remaining stores, mainly those located near existing Best Buy locations.
October 29, 2016: Best Buy's Global Presence as of October 2016
As of October 29, 2016, Best Buy operated numerous stores across North America, including 1,026 Best Buy stores, 331 Best Buy Mobile stand-alone stores, and 28 stand-alone Pacific Sales stores in the US. They also had a presence in Canada with 135 Best Buy stores and 53 Best Buy Mobile stand-alone stores, as well as in Mexico with 18 Best Buy stores and 5 Best Buy Express stores.
March 1, 2018: Best Buy to Close All Standalone Best Buy Mobile Stores in the US
On March 1, 2018, Best Buy announced its decision to close all 250 standalone Best Buy Mobile stores in the US due to low revenue and high costs. These stores reportedly contributed to only 1% of the company's overall revenue.
May 9, 2018: Best Buy Unveils New Logo
Best Buy introduced a new logo on May 9, 2018, for the first time in almost three decades.
July 2, 2018: Best Buy Reduces Physical Music Space
On July 2, 2018, Best Buy announced a reduction of store space allocated for physical music sales, citing the growing popularity of streaming services and their impact on sales.
2018: Fortune 500 Ranking
Best Buy was ranked number 72 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.
April 15, 2019: Best Buy Announces CEO Succession Plan
On April 15, 2019, Best Buy announced that their current CFO, Corie Barry, would be succeeding Hubert Joly as CEO in June 2019.
June 2019: Leadership Transition
Corie Barry took over as CEO of Best Buy in June 2019, succeeding Hubert Joly, who became executive chairman.
June 2019: Corie Barry Takes Over as Best Buy CEO
Corie Barry took over as the new CEO of Best Buy in June 2019, succeeding Hubert Joly who had been leading the company since August 2012.
December 2020: Best Buy Leaves Mexico
Due to the impacts of the COVID-19 pandemic, Best Buy ended its operations in Mexico in December 2020.
2021: Best Buy Lays Off Employees Despite Increased Sales
Despite a surge in computer equipment sales due to the rise in remote work during the COVID-19 pandemic, Best Buy laid off over 5,000 employees and transitioned many others to part-time positions in early 2021.
August 2022: Best Buy Announces Layoffs and Lowers Sales Forecast
In August 2022, Best Buy announced layoffs across its stores in the United States due to a predicted decline in sales. The company also revised its sales projections for the remainder of 2022.
October 13, 2023: Best Buy to Phase Out Physical Home Media Sales
Best Buy announced on October 13, 2023, that it would be discontinuing the sale of physical home media, such as DVDs and Blu-rays, starting in early 2024. The company attributed this decision to the changing market dynamics influenced by the dominance of streaming video on demand services.
October 20, 2023: CBC News Exposes Best Buy Technician Privacy Breaches
On October 20, 2023, CBC News published the findings of a Marketplace investigation, revealing that technicians at Best Buy had accessed personal files, including private photos, on customer devices. The investigation also discovered one instance of a technician copying photos onto a USB flash drive.
March 2024: Best Buy Blocks Donations to LGBT Organizations After Shareholder Pressure
In March 2024, facing pressure and potential shareholder action from conservative advocacy groups, Best Buy made the decision to halt donations from its employee resource groups to eight LGBT organizations. The company's decision stemmed from these organizations' support for access to gender-affirming care for transgender minors. This action drew criticism from various groups, including GLAAD and the Human Rights Campaign.