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Best Buy's international chief retiring
Robert Willett is leaving as the company pursues overseas expansion.
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Robert Willett, chief executive of international operations at Best Buy Co. Inc. and the Richfield retailer's third-ranking executive, will retire at the end of the year and won't be replaced, the company said Wednesday.
The move comes despite special stock-option awards granted by the company's board in May as part of a long-term incentive program designed to retain Willett through at least February 2011. And while Best Buy reiterated its commitment to a global growth strategy, Willett's departure comes as recent expansion initiatives have been a drag on earnings.
In a news release, Best Buy said Willett, 63, would work with Best Buy CEO Brian Dunn "on a smooth transition" to his departure. "The company has strong local leaders in every country in which it operates and is confident in their abilities," it said.
A spokeswoman said there has been no change to Best Buy's international expansion plans, including opening five stores in the United Kingdom next year, and said Willett's departure doesn't have anything to do with weakening performance in the international operations. The company's first store in Turkey, originally scheduled to open in October, ran into construction delays but is slated to open in December, spokeswoman Lisa Hawks said in an e-mail.
Willett wasn't available for comment.
Best Buy shares are up 50 percent this year and closed Wednesday at $42.25, up 1 cent.
KeyBanc Capital analyst Brad Thomas said the management transition raises new risks for a company increasingly focused on international expansion.
"With Best Buy Europe stores scheduled to open in 2010, investors' eyes will be even more focused on this segment as we enter the new year," Thomas said in a note to clients. "Ultimately, an effective international management team and reporting structure will be critical."
International operations generated about 22 percent of total Best Buy revenue last year but only about 6 percent of operating income.
Willett joined Best Buy in 2002 as a consultant and special adviser and was executive vice president of operations from 2004 to 2006. He is a former global managing partner for Accenture's retail practice.
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