Best Buy, Retail Localization

Best Buy CEO outlines plan to reverse decline

In his Tuesday address to investors and stockholders in New York City, newly minted Best Buy Co. CEO Hubert Joly acknowledged that sales and profits are on a decline, and presented a plan to shore up finances and operations by cutting expenses, rethinking footprints and improving both offline and online customer satisfaction.

Best Buy, Retail Localization

Part of the plan involved tapping former Williams-Sonoma exec Sharon McCollam as its new CFO.

Best Buy is targeting an operating margin of 5% to 6% over time, as well as a return on invested capital of 13% to 15%, Joly said.  He told investors Tuesday that the retailer wants to rationalize its footprint but cannot boost operating income just by closing stores.