Allen Hughes Merchant Lead, Gadgets & eReaders

Who has Gadgets & eReaders in their stores today?

Who has Inventory?

We pushed hard to get this in for Holiday… We have 80% in-stock today

We pushed hard to get this in for Holiday… We have 80% in-stock today 99% in-stock by 10/18

We pushed hard to get this in for Holiday… 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… 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

…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

Play video from DVD – Sony Commercial NOT FOR PRESENTATION

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

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!

Davian Altamiranda District Manager

How does Gadgets and eReaders tie into our Integrated Frame? Financial FY10 - $110 million Many items 35% GMP Unbudgeted Growth! Customer Expect to find latest Gadgets Test and Compare – In-store experiences Great Gift Ideas – Stimulate the Mind Employee 90% 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 “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 “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

It’s about Growth, Gifts & Margin Growth – eReaders will be huge Gifts – Broad selection

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

Brain Playground Join Us 7 and Tomorrow Night Near the Gaming Lounge