BEST BUY & PETSMART Brittany Condon Heba Mehyou

Best Buy’s Financial Analysis 2008 $Ms 2007 $Ms Net Sales45,01540,023 Gross Profit10, %9, % Net Income (After Tax)1, %1, % GMROI2.31$2. 03 Inventory Turnover Asset Turnover ROA21.7%26.8% RONW38.2%31.4% Stores14761,314 Sales/Store3130 # of Employees155,000150,000 Sales/ Employee290263

PETSMART FINANCIALS $000s Net Sales5,065, ,672, Gross Profit1,495, % 1,436, % Net Income192, % 258, % GMROI % % Inventory Turnover Asset Turnover Return on Assets 8.17%11.94% Return on Net Worth 16.84%26.22% Number of Stores Sales Per Store 4,209, ,191, Employees Sales per Employee110, ,666.42

2008 Revenue Mix Summary for Best Buy

2008 PetSmart Products

Best Buy’s Major Competitors Warehouse Stores and Supercenters – Target – Wal-Mart – Costco – Sears

Competition Pet Co. Wal-Mart Target Veterinarians Kroger Harps

Best Buy Beginning MSAs GeographyBest Buy Households: Total Households: Householder 35 to 54 years; $75,000+ Establishments Appliance Television and Other appliance Stores SalesSales/Store Radio, Television and Other Electronics Stores SalesSales/Store New York, NY53,485,449456,0492,5025,068,2852, ,518,6662,731 Los Angeles--Long Beach, CA PMSA43,136,279439,7251,3893,366,4012,4241,1152,677,5212,401 Chicago, IL PMSA72,972,373534,7461,0532,658,7562, ,064,6152,404 Philadelphia, PA--NJ PMSA;21,915,187316, ,277,4722, ,103,9342,344 Washington, DC--MD--VA--WV PMSA;21,849,708427, ,230,9631, ,3772,300 Detroit, MI PMSA;11,696,335290, ,142,6602, ,9811,858 Atlanta, GA MSA31,505,564279, ,115,2492, ,012,8372,584 Houston, TX PMSA;91,463,983239, ,227,3332, ,0362,568 Boston, MA--NH PMSA;21,323,735260, ,142,1062, ,2182,837 Dallas, TX PMSA;31,283,156220, ,318,7602, ,118,1632,339 Phoenix--Mesa, AZ MSA71,194,461161,974 Minneapolis--St. Paul, MN--WI MSA01,137,313222,656 Riverside--San Bernardino, CA PMSA;31,035,620138,941 St. Louis, MO--IL MSA21,013,341142,147 Tampa--St. Petersburg--Clearwater, FL MSA41,009,792101,149 San Diego, CA MSA2995,492155,702 Baltimore, MD PMSA;2974,359166,783 Pittsburgh, PA MSA3967,044104,570 Seattle--Bellevue--Everett, WA PMSA;2963,957179,380 Orange County, CA PMSA;2936,154201,229 Nassau--Suffolk, NY PMSA;0917,338234,170 Cleveland--Lorain--Elyria, OH PMSA;2892,824115,873 Oakland, CA PMSA;1868,209195,626 Denver, CO PMSA;2825,951149,388 Miami, FL PMSA;7777,37879,172

PetSmart Beginning MSAs GeographyPetSmart Households: Householder years: $75,000+/store Households: TotalPet Supplies Stores Pet Supplies Stores Sales (100s) Sales per store Springfield, MO MSA110,034129,5567D Corpus Christi, TX MSA113,274132,3535D Hartford, CT MSA385,410457,421151D Louisville, KY--IN MSA450,889412,28934D Pensacola, FL MSA213,470154,851N/AD Fayetteville, NC MSA18,909107,39176, Charleston, WV MSA110,289106,21855,8571, South Bend, IN MSA211,674100,629810,7061, Macon, GA MSA213,368121,45676, Spokane, WA MSA216,764163, ,9171, Salinas, CA MSA217,453121, ,1901, Mobile, AL MSA218,349205,61146,4791, Huntsville, AL MSA219,005134,75396, Boise City, ID MSA219,696158,64259,3891, Memphis, TN--AR--MS MSA253,125424, ,0711, El Paso, TX MSA315,524210,034914,1751, Modesto, CA MSA316,391145, ,3851, Reno, NV MSA318,466132, ,9371, Reading, PA MSA319,291141, , Des Moines, IA MSA325,770179, ,2951, Baton Rouge, LA MSA326,789223,620710,3501, Albuquerque, NM MSA431,349275, ,8291, Colorado Springs, CO MSA528,841192, ,4471, Tulsa, OK MSA533,869315,75921D Tucson, AZ MSA631,638332, ,2061,488.24

Best BUY LocationsHouseholdsAgeIncomeChildrenEducationLifeStyle 1: 3100 Lohr Rd. Ann Arbor, MI mi. 35, (105)$75-99k (103)6-17 (72) Some Col (91) Affl. Minipolitan Sprawl (121) Lat: mi. 74, (88)$<100k (139)No children (114)Col. Grads (221) Striving Suburban Mix (92) Long: mi. 101,603 2: 2300 S. Christopher Columbus Blvd. PA 3 mi. 109, (100)< 10k (225)6-17 (90)Some HS (167) Cosmopolitan Urban Mix (294) Lat: mi. 338, (94)10k-19,999 (148)No Children (106)HS Grad (110) Striving Urban Melting Pot (645) Long: mi. 633,768 3: 9940 Roosevelt Blvd. Philadelphia, PA 3 mi. 62, (95)50k-74,999 (106)6-17 (92)Some HS (110) Cosmopolitan Urban Mix (445) Lat: mi. 205, (99)75k-99,999 (110)No children (107)HS Grad (129) Striving Urban Melting Pot (435) Long: mi. 443,979 4: th St. NW Washington, DC 3 mi. 38, (149) <10k (117) 100,000+ (153) 6-17 (47)Some HS (83) Cosmopolitan Urban Mix (589) Lat: mi. 154, (80)No children (128)College Grad (188) Striving Urban Melting Pot (404) Long: mi. 303,037 5: 1210 Caroline St. NE Atlanta, GA 3 mi. 74, (115)<10k (156)6-17 (63) Prosperous Suburbs (303) Lat: mi. 206, (92)10k-19,999 (116)Some HS (106) Long: mi. 356,782No Children (119)College Grad (155) Striving Suburban Mix ( 456) 6: 4500 Wisconsin AVE NW Tenleytown, DC mi. 98, (100)$75-99k (105)6-17 (59)Some College (61) Urban High Society (1124) Lat: mi. 341, (91)$>100k (204)No Children (121)College Grad (220) Cosmopolitan Urban Mix (489) Long: mi.623,966 7: 2537 Piedmont RD NE, Atlanta, GA mi. 68, (119)<10k (112)6-17 (45)Some College (71) Prosperous Suburbs (583) Lat: mi.197, (90)>100,000 (156)No Children (128)College Grad (207) Cosmopolitan Suburbs (478) Long: mi. 376,684 8: 1201 Hammond DR NE, Atlanta, GA mi. 38, (117)75k-99,999 (101)6-17 (63)Some College (76) Prosperous Suburbs (774) Lat: mi.131, (99)>100,000 (184)No Children (118)College Grad (213) Cosmopolitan Suburbs (607) Long: mi. 315,698 Minimums3 mi. <10k 6 mi. 74,248Not clear6-17 (45) 9 mi.No Children (106)College Grad

Best Buy’s Key MSA’s Tenleytown, DC. 6mi. 341,294 households $75-99,999 (105) >100k (204) Some College (61) College Grad (220) Urban High Society (1124) Children – 6-17 (59) – No Children (121) Atlanta, GA 6mi. 131, 370 households 75k-99,999 (101) >100,000 (184) Some College (76) College Grad (213) Prosperous Suburbs (774) Children – 6-17 (63) – No Children (118)

Memphis and Boise City Analysis Existing LocationsHouseholdsIncomeAgesChildrenEducationLife Style Wolfcreek Parkway; Memphis, TN Lat: Lon: mi. 2,115 3 mi. 25,319 5 mi. 59,689 $50-74m(134) $75-99m (148) $100m+ (136) (110) (115) (127) < 6 (135) 6-17 (111) No Children (98) Some College (126) College Graduate (141) Affluent Suburbs (1070) Midscale Suburban Mix (1413) Winchester Rd. Memphis, TN Lat: Lon: mi. 2,551 3 mi. 28,011 5 mi. 63,319$50-74m(137) (102) (119) (114) < 6 (102) 6-17 (119) No Children (113) Some College (116) College Graduate (182) Prosperous Suburbs (1387) Midscale Minipolitan (1222) Airline Rd. Baton Rouge, LA Lat: Lon: mi. 2,849 3 mi. 33,367 5 mi. 83,367Under $10m (140) (170) (114) 65+ (181)No Children (119) Some College (111) College Graduate (135) Affluent Minipolitan Sprawl (743) Struggling Minipolitan (813) Millerville Rd. Baton Rouge, LA Lat: Lon: mi. 4,829 3 mi. 24,626 5 mi. 58,183 $50-74m (137) $75-99m (139) (146) (114) (119)< 6 (119) Some College (113) College Graduate (130) Cosmopolitan Suburb (666) Midscale Minipolitan (652) S. Mall Dr. Baton Rouge, LA Lat: Lon: mi. 1,102 3 mi. 22,155 5 mi. 55,234 $10-19m (136) $20-29m (179) 30-39m (139) (173) (160)6-17 (180)College Graduate (140) Midscale Suburbs (1849) Striving Suburban Mix (897) W. Franklin Boise City, ID Lat: Lon: mi. 2,300 3 mi. 35,877 5 mi. 88,550 $10-19m (130) $20-29m (132) $30-39m (153) $40-49 (140) (149) (145)< 6 (116)Some College (138) Striving Suburban Mix (1659) Striving Small City Living (713) Eagle Rd. Meridian, ID Lat: Lon: mi. 1,666 3 mi. 33,753 5 mi. 64,197 $75-99m (203) $100m+ (157) (118) (120) < 6 (141) 6-17 (116) Some High School (124) Some College (130)Affluent Suburbs (2237) Mae Anne Av. Reno, NV Lat: Lon: mi. 5,617 3 mi. 29,510 5 mi. 61,249 $50-74m (126) $75-99m (133) (171) (126)6-17 (128) Some College (130) College Graduate (137) Affluent Suburbs (1500) Striving Suburban Mix (931) S. Virginia St. Reno, NV Lat: Lon: mi. 2,707 3 mi. 31,181 5 mi. 57,707 $30-39m (118) $40-49m (122) $50-74m (120) (152) (118)No Children (114)Some College (132) Affluent Suburbs (711) Cosmopolitan Suburbs (915) Los Altos Parkway Reno, NV Lat: Lon: mi. 2,744 3 mi. 28,564 5 mi. 55,275 $50-74m (162) $75-99m (179) $100m+ (148)35-44 (130) < 6 (125) 6-17 (118)Some College (125)Affluent Suburbs (2237)

PetSmart’s Key MSA’s Memphis, TN 3 mi. 28,011 households $75-99m (148) Some College (126) College Graduate (182) Prosperous Suburbs (1,387) Children – >6 (135) – 6-17 (119) Boise City, ID 3 mi. 35,877 $75-99m (203) Some College (138) Striving Suburban Mix (1,659) Affluent Suburbs (2,237) Children – >6 (141) – 6-17 (116)

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