allen hughes merchant lead, gadgets & ereaders. who has gadgets & ereaders in their stores...

Allen HughesMerchant Lead, Gadgets & eReaders

Who has Gadgets & eReaders in their stores today?

Who has Inventory?

We pushed hard to get this in for Holiday…

Gadgets and eReaders Inventory

Category Total Sku's in POG 31-Aug 7-Sep 14-Sep 21-Sep 28-Sep 5-Oct 12-Oct 19-Oct

Sony Reader 14 6 8 9 9 14 14 14 14

Livescribe 11 0 1 9 11 11 11 11 11

Leapster 1 20 18 19 19 19 19 20 20 20

Leapster 2 16 16 16 16 16 16 16 16 16

Sharper Image 10 0 0 0 1 6 10 10 10

Gadgets 13 1 1 8 9 12 13 13 13

Brain Games 18 3 13 14 15 18 18 18 18

Virtual World 18 10 10 12 14 18 16 16 16

Books 112 112 112 112 112 112 112 112 112

Total 232 166 180 199 206 226 230 230 230

Percent to Full 71.6% 77.6% 85.8% 88.8% 97.4% 99% 99%

= date section will be full

**MKD planned for 10/18 results in more SKUs on some Planograms.

• We have 80% in-stock today




Sony Reader 14 6 8 9 9 14 14 14 14

Livescribe 11 0 1 9 11 11 11 11 11

Leapster 1 20 18 19 19 19 19 20 20 20

Leapster 2 16 16 16 16 16 16 16 16 16

Sharper Image 10 0 0 0 1 6 10 10 10

Gadgets 13 1 1 8 9 12 13 13 13

Brain Games 18 3 13 14 15 18 18 18 18

Virtual World 18 10 10 12 14 18 16 16 16

Books 112 112 112 112 112 112 112 112 112

Total 232 166 180 199 206 226 230 230 230

Percent to Full 71.6% 77.6% 85.8% 88.8% 97.4% 99% 99%




• 99% in-stock by 10/18




Sony Reader 14 6 8 9 9 14 14 14 14

Livescribe 11 0 1 9 11 11 11 11 11

Leapster 1 20 18 19 19 19 19 20 20 20

Leapster 2 16 16 16 16 16 16 16 16 16

Sharper Image 10 0 0 0 1 6 10 10 10

Gadgets 13 1 1 8 9 12 13 13 13

Brain Games 18 3 13 14 15 18 18 18 18

Virtual World 18 10 10 12 14 18 16 16 16

Books 112 112 112 112 112 112 112 112 112

Total 232 166 180 199 206 226 230 230 230

Percent to Full 71.6% 77.6% 85.8% 88.8% 97.4% 99% 99%




• 99% in-stock by 10/18

• Merch Kit on 10/18 to clean up for Holiday




Sony Reader 14 6 8 9 9 14 14 14 14

Livescribe 11 0 1 9 11 11 11 11 11

Leapster 1 20 18 19 19 19 19 20 20 20

Leapster 2 16 16 16 16 16 16 16 16 16

Sharper Image 10 0 0 0 1 6 10 10 10

Gadgets 13 1 1 8 9 12 13 13 13

Brain Games 18 3 13 14 15 18 18 18 18

Virtual World 18 10 10 12 14 18 16 16 16

Books 112 112 112 112 112 112 112 112 112

Total 232 166 180 199 206 226 230 230 230

Percent to Full 71.6% 77.6% 85.8% 88.8% 97.4% 99% 99%




• 99% in-stock by 10/15

• Merch Kit on 10/18 to clean up for Holiday

• And remember, this is

UNBUDGETED!

G&eR represents unbudgeted growth…

eReaders – the next billion dollar category for Best Buy

* Source: Credit Suisse Analyst Report



• 51% annual industry growth





• $13B in eReaders & eBooks by 2014






• Over 100% attach ratio with GS BTP, covers and content cards






• Over 100% attach ratio with GS BTP, covers and content cards

• $55M just in eReaders for Best Buy FY ’10


…while solving customer needs

Gadgets – entertaining gifts with great margins



• #1 place customer expect to find gadgets




• 90% of you wanted these products in-store




• 90% of you wanted these products in-store

• Many of our top products have 35% gross margin

Holiday Priority #1: Drive eReaders

Best Buy is the place to test, try and buy the latest technology



• Marketing



• Marketing

• Interactive display



• Marketing


• Full Accessory, Service & Content offerings



• Marketing



• Physical books



• Marketing



• Physical books

• You!

eReaders are Gadgets…for now.

Customers see this as a new, cool technology…a gadget

Category will grow and become common

MP3 Players used to be gadgets too

Holiday Priority #2: Giftable Gadgets

Best Buy has the latest gadgets to entertain your mind



• Engaging in-store experiences




• All age ranges




• All age ranges

• Great margins




• All age ranges

• Great margins

• You!

Davian AltamirandaDistrict Manager

How does Gadgets and eReaders tie into our Integrated Frame?

FinancialFY10 - $110 million

Many items 35% GMP

Unbudgeted Growth!

CustomerExpect to find latest Gadgets

Test and Compare – In-store experiences

Great Gift Ideas – Stimulate the Mind

Employee90% employees ask for it

All-Store Meeting Launch

Learning Lounge

Communications will drive consumer and employee awareness

Strategy #1: Drive awareness w/ existing traffic & assets

Tactics:• HD Wall• Insert• BBY.com• Reward Zone




Strategy #2: Engage our customers and introduce the category

Tactics:• Launch campaign• Paid search• Facebook apps• Viral campaign• PR/Events






Strategy #3: Highlight these products as great gifts

Tactics:• BBY holiday TV ad• BBY Gift Guide• Sony TV ad• @15 “Gifts that Give”






Strategy #3: Highlight these products as great gifts

Tactics:• BBY holiday TV ad• BBY Gift Guide• Sony TV ad• @15 “Gifts that Give”

Strategy #4: Get employees to drive awareness

Tactics:• Kickoff event in KC• All-Store Training• Tag TV• Learning Lounge• ETK Widget

It’s about Growth, Gifts & Margin

Growth – eReaders will be huge



Gifts – Broad selection




Margin – Unbudgeted upside




Margin – Unbudgeted upside

Overall – $110M in FY ‘10

Brain Playground

Join Us Tonight @ 7 and Tomorrow Night Near the Gaming Lounge

allen hughes merchant lead, gadgets & ereaders. who has gadgets & ereaders in their stores...

Documents

holiday slide

gadgets ereaders slide

drive ereaders best

store slide

presentation slide

latest technology slide

unbudgeted growth ereaders

best buy fy