Best Buy raises outlook for U.S. growth

MINNEAPOLIS Best Buy announced today that it raised its outlook for new superstores in the United States by 40%. The company also said the number of stores could now approach 1,800 in the United States and Canada, up from its prior growth plan of 1,400 stores. This new total assumes 1,400 U.S. Best Buy superstores, up from 1,000 previously; at least 200 Canadian superstores (including both Future Shop and Best Buy stores); and up to 200 Pacific Sales stores. Best Buy also reiterated its commitment to growth in China via both the Five Star and Best Buy brands. The company currently operates 852 U.S. Best Buy stores, 47 Canada Best Buy stores, 122 Canada Future Shop stores and 14 U.S. Pacific Sales stores. On average, the company has historically increased North American square footage by approximately 10% per year.

"We continue to generate strong returns on new store openings, and we're growing our market share with our customer-focused strategy," said Brian Dunn, president and coo of Best Buy. "We intend to press this advantage in the marketplace. We firmly believe we can extend our new store runway, profitably, because we'll continue to focus on three things: improving how well we serve existing customers, attracting new customers and enhancing our store profit model."