Best Buy
Company History
Best Buy History: Founding, Growth & Key Milestones
Founded 1966 in Saint Paul, Minnesota, United States
When was Best Buy founded?
Best Buy was founded in 1966 in Saint Paul, Minnesota, United States by Richard M. Schulze and James Wheeler, making it 60 years old.
- Founded
- 1966
- Founding place
- Saint Paul, Minnesota, United States
- Founders
- Richard M. Schulze and James Wheeler
- Headquarters today
- Richfield, Minnesota, United States
- Milestones documented
- 16 (1966–2025)
- Current CEO
- Corie Barry
- Acquisitions
- 5
| Year | Event |
|---|---|
| 1966 | Sound of Music Founded |
| 1981 | Tornado Sale Catastrophe & Breakthrough |
| 1983 | Rebranded to Best Buy Co., Inc. |
| 1985 | Initial Public Offering |
| 1989 | Non-Commissioned Store Format Revolution |
| 2000 | Launch of BestBuy.com E-Commerce |
| 2001 | Acquisition of Musicland Group |
| 2002 | Geek Squad Acquisition |
| 2006 | Magnolia Audio Video Integration |
| 2008 | Carphone Warehouse European Joint Venture |
| 2012 | Hubert Joly Appointed CEO ('Renew Blue') |
| 2013 | Samsung Experience Shop & Apple Store Partnerships |
| 2018 | Acquisition of GreatCall (Lively) |
| 2019 | Corie Barry Named Chief Executive Officer |
| 2021 | Current Health Acquisition & Best Buy Total |
| 2025 | FY2025 Financial Performance & AI Retail Fleet |
- Where was Best Buy founded?
- Best Buy was founded in Saint Paul, Minnesota, United States in 1966. corporate.bestbuy.com
- Who founded Best Buy?
- Best Buy was founded by Richard M. Schulze and James Wheeler.
- When did Best Buy start?
- Best Buy was founded in 1966.
- How old is Best Buy?
- Best Buy is 60 years old as of 2026.
Founding Story
In 1966, Richard M. Schulze and James Wheeler opened Sound of Music in Saint Paul, Minnesota. In 1981, a devastating tornado ripped the roof off their largest location. Schulze held a massive 'Tornado Sale' in the parking lot, slashing prices to the bare minimum. The overwhelming consumer response inspired the 1983 rebranding to Best Buy.
Founders
Richard M. Schulze
Richard Michael Schulze is an American billionaire businessman who founded Sound of Music in Saint Paul, Minnesota in 1966 with $800 in personal savings and a small bank loan. Schulze pioneered the big-box discount consumer electronics format in the 1980s, serving as Best Buy CEO from 1966 to 2002 and Chairman until 2012. He remains Best Buy's largest individual shareholder and Chairman Emeritus, having built the chain into a Fortune 100 enterprise.
James Wheeler
James Wheeler was the initial business partner alongside Richard Schulze who helped launch the original Sound of Music audio retail store in 1966, providing initial capital and operational assistance before selling his equity interest back to Schulze in 1971 as the business expanded beyond single-location audio components.
Key Milestones
Sound of Music Founded
Richard M. Schulze and James Wheeler opened Sound of Music, an audio specialty retailer, in Saint Paul, Minnesota, targeting high-fidelity stereo enthusiasts.
Source: corporate.bestbuy.comTornado Sale Catastrophe & Breakthrough
A devastating tornado struck the Roseville Sound of Music location; Schulze responded by holding a massive parking lot 'Tornado Sale' with discount pricing, establishing the high-volume superstore retail model.
Source: corporate.bestbuy.comRebranded to Best Buy Co., Inc.
The company changed its corporate name to Best Buy Co., Inc. and opened its first 18,000-square-foot superstore in Burnsville, Minnesota, offering an expanded consumer electronics lineup.
Source: corporate.bestbuy.comInitial Public Offering
Best Buy completed its initial public offering on the NASDAQ under ticker BBUY, later shifting to the New York Stock Exchange under ticker BBY in 1987.
Source: corporate.bestbuy.comNon-Commissioned Store Format Revolution
Best Buy eliminated high-pressure commissioned sales staff in favor of salaried store associates and placed appliances and computers directly on grab-and-go open sales floors.
Source: corporate.bestbuy.comLaunch of BestBuy.com E-Commerce
Best Buy launched its primary e-commerce web platform, initiating its long-term omnichannel fulfillment strategy across North America.
Source: corporate.bestbuy.comAcquisition of Musicland Group
Best Buy acquired Musicland Group for $685 million to expand mall presence with Sam Goody and Suncoast, later divesting the business after digital piracy disrupted physical media.
Source: corporate.bestbuy.comGeek Squad Acquisition
Best Buy acquired 24-hour computer diagnostic and repair startup Geek Squad, founded by Robert Stephens, integrating certified technicians into every physical superstore.
Source: corporate.bestbuy.comMagnolia Audio Video Integration
Best Buy rolled out high-end 'Magnolia Home Theater' dedicated experiential spaces across hundreds of locations to cater to premium home cinema installations.
Source: corporate.bestbuy.comCarphone Warehouse European Joint Venture
Best Buy partnered with UK mobile retailer Carphone Warehouse to establish Best Buy Europe, investing $2.1 billion before divesting its stake in 2013.
Source: corporate.bestbuy.comHubert Joly Appointed CEO ('Renew Blue')
Following an operational crisis and the resignation of Brian Dunn, Hubert Joly took over as CEO and launched the 'Renew Blue' turnaround strategy: matching online prices, partnering with tech giants for store-within-a-store concepts, and turning retail locations into ship-from-store fulfillment centers.
Source: corporate.bestbuy.comSamsung Experience Shop & Apple Store Partnerships
Best Buy signed landmark retail agreements with Samsung, Apple, and Sony, leasing dedicated square footage within big-box stores for brand-certified boutique displays.
Source: corporate.bestbuy.comAcquisition of GreatCall (Lively)
Best Buy acquired health technology firm GreatCall for $800 million in cash, creating Best Buy Health and entering remote patient monitoring and active aging services.
Source: corporate.bestbuy.comCorie Barry Named Chief Executive Officer
Hubert Joly stepped down to become Executive Chairman and Chief Financial Officer Corie Barry was appointed CEO, becoming the first female chief executive in Best Buy history.
Source: corporate.bestbuy.comCurrent Health Acquisition & Best Buy Total
Best Buy acquired Current Health for $400 million to expand FDA-cleared in-home patient telemetry and launched its paid subscription membership 'Best Buy Total'.
Source: corporate.bestbuy.comFY2025 Financial Performance & AI Retail Fleet
Best Buy reported FY2025 revenue of $43.45 billion with GAAP net income of $1.241 billion, operating 1,020 North American stores with digital sales accounting for over 33% of domestic revenue.
Source: corporate.bestbuy.comMajor Acquisitions
Geek Squad
2002Magnolia Audio Video
2000GreatCall (Lively)
2018Current Health
2021Yardbird
2021Keep researching Best Buy
Best Buy Company History FAQ
What was Best Buy's original name when founded in 1966?
Best Buy was founded in 1966 under the name 'Sound of Music' by Richard M. Schulze and James Wheeler in Saint Paul, Minnesota, originally specializing in high-fidelity home stereo components.
How did the 1981 tornado sale reshape Best Buy's retail strategy?
In June 1981, a tornado destroyed the Roseville, Minnesota store. Founder Richard Schulze gathered all remaining inventory and held a massive parking lot 'Tornado Sale' with rock-bottom wholesale prices. The event drew massive crowds, generating more cash in a weekend than regular operations did in months and inspiring the superstore discount model.
When did Best Buy acquire Geek Squad and why?
Best Buy acquired Geek Squad in 2002 from founder Robert Stephens. The acquisition gave Best Buy an in-house installation and technical repair network that transformed stores from simple hardware showcases into trusted customer service hubs.
What was the 'Renew Blue' strategy that saved Best Buy in 2012?
Launched by CEO Hubert Joly in 2012, Renew Blue eliminated showrooming by matching online prices, partnered with vendors like Apple and Samsung for in-store boutique pavilions, converted retail backrooms into ship-from-store distribution centers, and cut $1.4B in non-productive costs.
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