Pledging that Best Buy intends to make it through the current economic slump as strong as ever, President and Chief Operating Officer Brian Dunn predicted Wednesday that the retailer will double sales in the next five years to $80 billion in fiscal year 2013.
It's a goal that's both ambitious and doable, Dunn told an audience who had gathered at the company's Richfield headquarters for the annual shareholder's meeting.
Best Buy, the nation's largest consumer electronics retailer, historically has averaged an annual growth rate of about 20 percent. Dunn presented a slide showing that the company already has doubled in size from $20 billion in fiscal year 2003 to $40 billion in fiscal 2008.
Dunn's comments wrapped up an upbeat management presentation that focused heavily on the company's international growth aspirations, as well as a pledge from CEO Brad Anderson to make the stock price reflect the company's own view of its bright future. Shares closed Wednesday at $41.65, but they have been trending downward since a high of $53.90 in December, as consumers cut back on discretionary spending.
Best Buy controls about 20 percent of the U.S. consumer electronics market and about 30 percent of computer sales, according to just-released first-quarter results.
Its $2.1 billion joint venture with London-based mobile phone retailing giant Carphone Warehouse is expected to be sealed next week. The deal will bring the company another step forward in Best Buy's strategy to "own the home," said Best Buy International's CEO Bob Willett.
"Own the home" covers such things as the GPS navigation system in the car, the home theater system in the living room, the computer in the home office, the iPod in the bedroom, the appliances in the kitchen and the Geek Squad service when things go awry.