Brad Anderson

CEO, Best Buy

Impact: The man who transformed Minneapolis-based Best Buy from a regional stereo shop into the globe’s most powerful consumer-electronics retail force, encompassing more than 1,150 outlets spread across the U.S. and reaching into Canada and China, has not lost his mojo.

Challenged in the low-margin gadget game by Wal-Mart and Costco, Best Buy — under Anderson’s guidance — has embarked over the last few years on a risky tweak to its business model, emphasizing services.

With entertainment technology growing more complicated, Anderson reasoned, service-oriented businesses such as the company’s Geek Squad PC-support operation and its Magnolia home-theater boutique would provide a how-to edge for confused consumers in a world where they could maybe save a few bucks at Wal-Mart but are left to the wolves of product manuals in the process.

A 52% jump in third-quarter profit suggests the strategy is working.

POV: “Five or six years ago, we built stores that were well-lit and provided an easy way for people to get out with the product they wanted,” Anderson says. “But now we’re having to swallow a lot more complexity in our operating systems. … We’re constantly having to handle more complicated customer issues as people use digital in a variety of ways.”

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety