During the company's first-quarter conference call, DarrenJackson, Best Buy's chief financial officer, said that though theservice branch of the business is growing, he warned that it is a"complex business" and that the retailer is "closer to the secondinning than the seventh inning" in its roll out.

Geek Squad, for example, the company's computer-supportbusiness, is offered in all 75-plus Best Buy stores, however, itsstand-alone units only number 12, with the company opening one inthe last quarter. This year the retailer will increase the numberof Best Buy stores with its high-end Magnolia Home Theater conceptfrom 127 to 300 buy the end of the year.

Meanwhile, Best Buy opened 12 of its traditional stores duringthe quarter and increased the number of its Best Buy For Businessunits from 119 at the end of the fourth quarter to 145. Best Buyalso added one Future Shop store in Canada, increasing itsportfolio of those units to 119.