Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MINNEAPOLIS-Best Buy Co.’s management is increasing its projected store count in North America from 1,400 stores to 1,800 units. The revised numbers include a total of 1,400 US Best Buy superstores, 200 Canadian superstores (under the Best Buy and Future Shop banners), and 200 Pacific Sales home-furnishing stores.

“We continue to generate strong returns on new store openings, and we’re growing our market share with our customer-focused strategy,” says Brian Dunn, president and chief operating officer, in a statement. “We intend to press this advantage in the marketplace.” Best Buy currently operates 852 US Best Buy stores, 47 Canada Best Buy stores, 122, Future Shop stores and 14 Pacific Sales stores in the US.

Additionally, Best Buy’s board authorized a $5.5-billion stock-repurchase program, which terminates and replaces the prior, $1.5-billion program the company previously had in place. Management expects to purchase $3 billion in shares by February of next year, funding the measure through cash, investments and borrowing. The remaining $2.5 billion will be used a later date, pending “business results, market conditions and board approval.”

The announcement of the increase in total stores and stock repurchase program comes after the company reported tough first-quarter results last week. Same-store sales during the period inched up 1.7% year over year, while earnings slid 18%, to $192 million, from the same year-ago period.

Despite the setback, Best Buy is sticking with its plans to open 130 stores this year, 95 domestic and 35 international. The company opened 30 stores in the US, one in Canada and three in China. Best Buy operates about 900 stores in the US, about 175 in Canada and 138 in China.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.