A Tech Retail Story That Started With Sound
In 1966, a small stereo shop opened in St. Paul, Minnesota. It was called Sound of Music, and it carried the simple promise of better sound at home.
Over time, that small start grew into a national consumer electronics retailer with a major U.S. base and a long-running presence in Canada. Today, it sells products, offers services, and aims to “enrich lives through technology.”
The journey is not a straight line. It is a long series of format changes, category shifts, and big calls made when the market changed fast.
The Founder and the First Store
Dick Schulze opened the first Sound of Music store in St. Paul in 1966. The early focus was stereo and music-related products, at a time when home audio was a passion category for many families.
In later reflections, Schulze points back to two themes that kept showing up. Stay close to the customer, and trust the people doing the work.
That mindset mattered because technology retail is never still. The products change, how people shop changes, and the business has to keep moving with them.
From Sound of Music to the Best Buy Name
The original firm began as Sound of Music, then later moved toward a much larger store model. The name that became famous took shape in the early 1980s.
Schulze describes 1983 as a key turning point. That year, the first store under the Best Buy name opened in Burnsville, Minnesota, and the team aimed to convert other locations to that superstore approach.
It was a change in scale and in ambition. The idea was to widen selection and pull more tech categories under one roof.
A Defining Early Story: The “Tornado Sale”
Company milestone material highlights a moment in 1981 that became part of the lore. A tornado damaged a store, and the team turned that disruption into a major sale event.
It is remembered as more than a promotion. It became a story about turning a hard day into a new kind of momentum.
Even without the drama of the weather, the lesson fits retail. When the floor shifts, the winners are often the ones who move first and keep the doors open.
The Big Bet on a Different Store Experience
As the company expanded, it did not only add stores. It worked on how the stores felt and how the sales process worked.
Schulze describes the move to a broader product offering and a model that removed commissioned pressure as a major shift. It framed the store as a place where the customer could take the lead.
That choice helped shape the brand identity for years. It also set up the business to sell more than audio, because the format could hold many categories at once.
What the Retailer Sells Today
In its most recent annual reporting, the firm lays out a wide set of product and service categories. It sells the devices people use, the systems that connect those devices, and help that keeps it all working.
The structure matters because it shows how the business thinks about demand. It is not one product line. It is a portfolio built to match how households actually live with technology.
These are the revenue categories described in the company’s reporting.
- Computing and Mobile Phones: computers, peripherals, phones, networking, tablets, and wearables, including items tied to carrier-related activity.
- Consumer Electronics: home theater, TVs and accessories, portable audio, smart home, imaging, and health and fitness tech.
- Appliances: large and small appliances.
- Entertainment: gaming hardware and software, movies, toys, VR, drones, and related items.
- Services: delivery, installation, repair, set-up, tech support, memberships, and warranty-related services, along with health-related services.
- Other: additional product lines that can include categories outside core electronics.
Services as a Second Engine
For years, the public image centered on rows of gadgets. Yet the service layer became a major part of the story, because many people do not only want a device.
They want it installed, connected, and working in their home. They want help when it breaks, and guidance when it is time to replace it.
In fiscal 2025 reporting, the company highlights growth drivers inside services such as delivery and installation, along with membership programs.
How the Business Makes Money
The core model is simple in outline. It earns revenue from selling products and from selling services tied to those products.
But the mix inside that simple outline is where the real strategy lives. Category shifts, online growth, and service adoption can change the whole shape of a year.
Key money streams described in company reporting include the following.
- Product sales: revenue across computing, phones, consumer electronics, appliances, and entertainment.
- Service revenue: installation, delivery, repair, support, and membership-related offerings.
- Online-enabled sales: digital ordering supported by delivery, pickup, and ship-from-store fulfillment.
- Program economics: reporting also references profit-sharing revenue linked to private label and co-branded credit card arrangements.
A Company Built on Stores, Then Rebuilt for Omnichannel
The store base has been a defining asset for decades. Yet the role of the store changed as online shopping grew and delivery speed became a weapon.
In its reporting, the firm describes a model that blends stores with online ordering, pickup options, and delivery. It also describes ship-from-store capabilities that use the store base as part of fulfillment.
This is how a physical network can stay relevant in a digital world. The building is not only a showroom; it can also be part of the supply chain.
Canada, Europe, and a Changing International Footprint
The company’s current reporting breaks the business into two segments. Domestic covers the United States and includes Best Buy Health, while International is tied to Canada.
Milestone material points to a major step into Canada in 2001 through the acquisition of Future Shop. That move created a long-term presence that still shows up in segment reporting today.
Outside North America, the story includes joint ventures and exits, which show how the team tested models and then adjusted when conditions changed.
- Canada: entry via the Future Shop acquisition (2001) and continued reporting as the International segment (Canada).
- Europe: a 2008 joint venture with Carphone Warehouse called Best Buy Europe, followed by a 2013 agreement to sell the 50% stake to Carphone Warehouse.
- Mexico: reporting notes an exit from Mexico operations and the completion of the sale of a Mexico subsidiary in fiscal 2024.
Acquisitions That Expanded the Playbook
The milestone list reads like a set of deliberate capability moves. Some deals added product strength, some added geographic reach, and some added services that changed the customer relationship.
The most famous service addition came through a name that many shoppers know as well as the retailer itself. Geek Squad became central to how the company could support customers after the sale.
Key acquisitions and related moves highlighted in company milestone material include the following.
- 2000: acquisition of Magnolia Hi-Fi, Inc.
- 2001: entry into Canada via acquisition of Future Shop, Ltd.
- 2002: acquisition of Geek Squad.
- 2005: acquisitions of Audiovisions and Pacific Sales.
- 2006: acquisition of a majority interest in Jiangsu Five Star Appliance Co., Ltd.
- 2007: acquisition of Speakeasy, Inc.
A Health-Focused Expansion
Technology does not only mean phones and laptops. Over time, it also came to mean safety, access, and support for older adults and families.
In 2018, the company announced an agreement to acquire GreatCall. The announcement described the deal at $800 million and framed it as a way to expand into connected health services.
In more recent segment reporting, Best Buy Health sits inside the Domestic segment structure, signaling that the health category is now part of the core operating story.
Competition That Never Lets Up
In its risk and competition discussion, the company describes a crowded field. Competitors include e-commerce firms, multi-channel retailers, technology service providers, and vendors who sell direct.
Some compete mainly on price, which can squeeze margins fast. The company also notes price-matching policies as part of its response to that pressure.
The point is clear. In tech retail, the competitive set is not only other big-box stores; it is almost anyone with a strong website, a fast delivery promise, or a brand people trust.
The Showrooming Shock and the 2012 Turning Point
A widely read business profile describes the early 2010s as a period when the company looked exposed. “Showrooming” became shorthand for a painful pattern: customers looked at products in-store, then bought them online elsewhere.
The same period included leadership turmoil and concerns about service reputation. The combination created a moment when many observers questioned whether the model could hold.
That same profile describes a response built around price matching and operational changes, including using stores more effectively for fulfillment and partnering approaches on the sales floor.
Leaders Who Marked New Chapters
Some names stick to the timeline because they show the direction of an era. One name is tied to the founding and early format shifts, and another is tied to the modern turnaround story.
Hubert Joly is associated in major coverage with the turnaround era that followed the 2012 pressure point. The story often centers on re-earning trust, tightening operations, and adjusting to the new online reality.
Corie Barry became CEO in June 2019, and company reporting lists her as CEO as of March 19, 2025.
Work, People, and Culture
Big retail is built on labor, training, and repeatable routines. The company’s reporting places heavy emphasis on “the power of our people,” and on learning and growth inside the workforce.
At the end of 2025, the company reports roughly 85,000 employees across the U.S. and Canada. That number hints at the scale of store operations, distribution, and service teams.
Milestone material also lists core values that highlight respect, integrity, learning from change, and unleashing people’s power, which matches the founder’s long-standing themes.
Impact Beyond the Sales Floor
The company’s reporting highlights community programs tied to technology access and learning. It notes a network of Best Buy Teen Tech Center locations supported by the Best Buy Foundation as of the fiscal 2025 year-end.
It also highlights Geek Squad Academy programming, which speaks to skills, confidence, and exposure to tech learning at earlier ages.
In a category that can feel cold and device-driven, those efforts aim to show technology as a tool for people, not the other way around.
How the Business Changed Over Time
The arc starts with stereo equipment and a single storefront. It evolves into a broad consumer tech retailer with multiple categories, a strong service layer, and a business that depends on both physical and digital channels.
The deal list shows how capability was added in chunks. Some moves changed product depth, some changed geography, and some changed how the customer relationship worked after purchase.
The segment structure shows where the center of gravity is now. Domestic is the core engine, while Canada remains the key international presence.
Where Things Stand in the Most Recent Reporting
The latest annual figures give a clear snapshot of scale. At the end of fiscal 2025, the company reports 1,117 stores.
For fiscal 2025, it reports Domestic segment revenue of $38.238 billion and International segment revenue of $3.290 billion. Together, that is about $41.528 billion in revenue for the year.
Digital demand is also visible in the numbers. Domestic online revenue is reported at $12.994 billion, or 34.0% of Domestic segment revenue for fiscal 2025.
Future Challenges and Open Doors
The future is shaped by forces the company calls out in its own risk discussion. Competition remains intense, and price pressure can rise fast when devices become more like commodities.
Supplier concentration is another real tension. When a few large vendors shape demand, product cycles, and pricing, a retailer has to keep those relationships strong while still protecting its own position.
Yet the opportunity side is also clear in recent reporting. Services, memberships, installation, delivery, and health-related offerings leave room to deepen the customer relationship beyond a single purchase.
Timeline
The timeline begins with a single audio shop in Minnesota. It moves through store format changes, major acquisitions, and a modern era shaped by online competition and service growth.
The dates below follow the company’s milestone history and its more recent annual reporting. They show how the business expanded, tested new regions, and reshaped its model as technology retail changed.
The result is a company that still relies on stores, but uses them in new ways, alongside online demand and service work.
1966
Dick Schulze opens the first Sound of Music store in St. Paul, Minnesota.
1967
Company milestone material lists early expansion and a growing retail footprint in the Minneapolis–St. Paul area.
1969
Milestone material highlights early public-market steps tied to the company’s shares.
1981
The “Tornado Sale” story becomes a defining early moment in company milestone history.
1983
The first store under the Best Buy name opens in Burnsville, Minnesota, marking a superstore shift.
Late 1980s
The founder describes a major model change that broadened product offerings and removed commissioned selling.
1994
Milestone material notes the creation of the Best Buy Children’s Foundation.
2000
The company acquires Magnolia Hi-Fi, Inc.
2001
The business enters Canada through the acquisition of Future Shop, Ltd.
2002
The company acquires Geek Squad, strengthening its service and support capabilities.
2005
The company acquires Audiovisions and Pacific Sales.
2006
The firm acquires a majority interest in Jiangsu Five Star Appliance Co., Ltd.
2007
The company acquires Speakeasy, Inc.
2008
A joint venture with Carphone Warehouse forms Best Buy Europe.
2012
Major coverage describes intense pressure from showrooming and online competition, followed by a turnaround effort.
2013
The company announces an agreement to sell its 50% stake in the European joint venture to Carphone Warehouse.
2016
A 50th anniversary founder interview reflects on the St. Paul origin and the 1983 superstore turning point.
2018
The company announces an agreement to acquire GreatCall to expand into connected health services.
June 2019
Corie Barry becomes CEO.
Fiscal 2024
The company reports the sale of a Mexico subsidiary after exiting Mexico operations.
Fiscal 2025
The company reports 1,117 stores, about 85,000 employees, and revenue of roughly $41.528 billion across the U.S. and Canada.
Lessons From the Journey
Retail history rewards clear themes more than flashy slogans. In this story, a few themes keep returning as the market shifts and the product mix changes.
They are not abstract. They show up in store format choices, service investments, and how the company responded when online competition hit hard.
Here are practical lessons that emerge from the company’s long arc.
- Format is strategy: a store layout and sales model can be as important as the products on the shelves.
- Services can protect the relationship: installation, repair, and support keep the customer close after the sale.
- Stores can be assets in an online era: physical locations can support pickup and delivery speed, not only browsing.
- Growth often comes in chapters: acquisitions and category expansion can change what a company is able to do.
- Leadership matters most in hard years: the early 2010s show how quickly confidence can fall, and how much work it takes to rebuild.
Sources: Best Buy, U.S. Securities and Exchange Commission, Reuters, TIME, Xnatedawgx, CC BY-SA 4.0, via Wikimedia Commons
