22 February 2007 — Minneapolis (MN): Best Buy plans to open 90 new stores and five new Pacific Sales stores in North America during 2008.
The retailer also has plans for Canada, aiming to open between 12 and 14 stores, under the Future Shop and Best Buy concepts.
In China, Best Buy wants to open between 20 and 23 new Five Star stores, as well as two or three extra Best Buy stores within the next 18 months.
Bill Sims, Citigroup analyst, said: "While Best Buy is still very early in terms of its expansion into China, we believe it has taken the proper steps to create a foothold in the market."
Best Buy gained a foothold in 2004 by opening a sourcing office in Shanghai, and in May 2006 acquired a majority stake in Jiangsu Five Star. In December, the company opened its first Best Buy-branded store in Shanghai.
Sims said: "We believe Best Buy’s dual-brand strategy in China is much like its strategy in Canada with Future Shop and Best Buy stores. Best Buy has been able to capture nearly 33 percent of the Canadian consumer electronics market with its dual-brand strategy, and we believe a similar strategy in China will help ease Chinese consumers’ acceptance of the Best Buy business model, which is very different from that of existing Chinese CE retailers."
Best Buy also said that its Geek Squad will start to work with European wireless retailer Carphone Warehouse in March to provide home computing support services in the UK.
A similar service is already offered in the UK by DSG International’s (DSGI) TechGuys service.