The Top 50 CE Retailers in the U.S. & Canada- The Push for Prof
Jennifer Driscoll, Best Buy's investor relations director, says Best Buy attempts to increase its profitability not just by stocking higher-end products, but by pushing "total solutions." She uses the sale of video cameras as an example. Best Buy's product placement strategy, she believes, not only ensures that the shopper leaves with the camera itself, but with all the accoutrements he needs to make the thing perform as he'd like. These include tapes, batteries, connectors and instructional CDs.
Just as important, though, are the locations from which corporations choose to sell these goods. Circuit City, in the middle of a chain-wide redesign, has maintained a relatively stable store count in recent years (629 in 2000, 631 in 2001), but Tweeter and Best Buy have expanded significantly.
Driscoll attributes Best Buy's increasing profitability in part to its construction of more than 60 new Best Buy outlets in 2001, and its acquisition of Musicland and Future Shop that same year.