allen hughes merchant lead, gadgets & ereaders. who has gadgets & ereaders in their stores...
TRANSCRIPT
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
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
• 99% in-stock by 10/18
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
• 99% in-stock by 10/18
• Merch Kit on 10/18 to clean up for Holiday
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
• 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
G&eR represents unbudgeted growth…
eReaders – the next billion dollar category for Best Buy
• 51% annual industry growth
* Source: Credit Suisse Analyst Report
G&eR represents unbudgeted growth…
eReaders – the next billion dollar category for Best Buy
• 51% annual industry growth
• $13B in eReaders & eBooks by 2014
* Source: Credit Suisse Analyst Report
G&eR represents unbudgeted growth…
eReaders – the next billion dollar category for Best Buy
• 51% annual industry growth
• $13B in eReaders & eBooks by 2014
• Over 100% attach ratio with GS BTP, covers and content cards
* Source: Credit Suisse Analyst Report
G&eR represents unbudgeted growth…
eReaders – the next billion dollar category for Best Buy
• 51% annual industry growth
• $13B in eReaders & eBooks by 2014
• Over 100% attach ratio with GS BTP, covers and content cards
• $55M just in eReaders for Best Buy FY ’10
* Source: Credit Suisse Analyst Report
…while solving customer needs
Gadgets – entertaining gifts with great margins
• #1 place customer expect to find gadgets
…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
…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
• 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
Holiday Priority #1: Drive eReaders
Best Buy is the place to test, try and buy the latest technology
• Marketing
Holiday Priority #1: Drive eReaders
Best Buy is the place to test, try and buy the latest technology
• Marketing
• Interactive display
Holiday Priority #1: Drive eReaders
Best Buy is the place to test, try and buy the latest technology
• Marketing
• Interactive display
• Full Accessory, Service & Content offerings
Holiday Priority #1: Drive eReaders
Best Buy is the place to test, try and buy the latest technology
• Marketing
• Interactive display
• Full Accessory, Service & Content offerings
• Physical books
Holiday Priority #1: Drive eReaders
Best Buy is the place to test, try and buy the latest technology
• Marketing
• Interactive display
• Full Accessory, Service & Content offerings
• 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
Holiday Priority #2: Giftable Gadgets
Best Buy has the latest gadgets to entertain your mind
• Engaging in-store experiences
• All age ranges
Holiday Priority #2: Giftable Gadgets
Best Buy has the latest gadgets to entertain your mind
• Engaging in-store experiences
• All age ranges
• Great margins
Holiday Priority #2: Giftable Gadgets
Best Buy has the latest gadgets to entertain your mind
• Engaging in-store experiences
• All age ranges
• Great margins
• You!
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
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
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”
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 #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
It’s about Growth, Gifts & Margin
Growth – eReaders will be huge
Gifts – Broad selection
Margin – Unbudgeted upside
Overall – $110M in FY ‘10