Best Buy has set a goal of doubling its $2 billion in annual online revenues within the next three to five years as it reduces its total brick-and-mortar store square footage by 10% Best Buy executives say these decisions, announced at its recent 2011 Investor and Analyst Day, are based on overall traffic growth, driven primarily by the company's Web properties.
Best Buy said it will increase online revenue by expanding its online-only assortment. Dunn also said the company plans to reduce store sizes by 20,000 to 45,000 square feet, resulting in expected annual savings of $70 million to $80 million when the changes are fully realized.
"Technology is connecting the world and we believe it's changing the world for the better," says Brian J. Dunn, CEO of Best Buy. "We recognize that people need help in navigating our increasingly connected world, and Best Buy has an unparalleled range of ways we can assist — online, through our stores, over the phone or in their homes. This multi-faceted approach allows us to serve customers whenever and wherever they want, which also positions us to improve returns and deliver value for shareholders."
Additionally, Dunn revealed that Best Buy plans to maximize the company's multi-channel, multi-category business through strategically diversified physical properties, including Best Buy Express kiosks and Best Buy Mobile standalone locations. The retailer plans to add 150 Best Buy Mobile Stores in 2012 and expects to have an estimated 600 to 800 stores in five years.