(Additional information on Best Buy Mobile included.)
It's a heartwarming tale. Local boy makes good. "The Secret of My Success" meets "Clerks."
But when Brian Dunn -- who started 25 years ago as a sales clerk in a small regional electronics store turned electronic giant -- took the reins as the new CEO of
today, the Hollywood script immediately turned from feel-good hit to drama.
As Dunn, 49, succeeds retiring CEO Brad Anderson, he is inheriting a company that can be best be called "challenged" -- one vying for a legion of consumers who are diligently cutting back on big-ticket electronic purchases.
Despite the shuttering of rival
, Best Buy isn't gaining as much market share as investors would like.
are all vying for Circuit City's customers and doing a good job competing on price.
And while Best Buy is picking up share gains in categories where it has a competitive edge, like car stereos and home theater, gains are less profound in generic categories like DVDs, which can be purchased in a variety of locations.
Indeed, since the elimination of Circuit City, Best Buy hasn't seen much momentum in sales. In fact the first quarter marked the third consecutive quarter in which
, falling 6.2%.
But Dunn has a plan. One of his biggest goals is to bolster market share in local communities. He plans to do this by stocking stores with an assortment of products, hiring smart employees and increasing its stance as the go-to destination for digital solutions and "connectivity."
Dunn also plans to grow the company's cell-phone division, called Best Buy Mobile, as well as improve digital music downloads through the acquired file-swapping service, Napster.
Dunn told reporters after the company's annual meeting that Best Buy will roll out 40 standalone mobile phone stores during the year,
The Wall Street Journal
His goal is to grow Best Buys' share of the U.S. mobile phone market to 15%, the Journal wrote. The company currently holds about 3% of the market.
Anderson, 60, is also a lifelong Best Buy employee who first started working at the stereo store that would eventually become Best Buy in 1973. Since becoming CEO in 2002 he managed to almost triple sales, which reached $45 billion at the end of its last year. He can be credited for the creation of the Geek Squad and making the company a go-to destination for almost all electronic devices.
Anderson will remain on the company's board for another year -- all in all, a nice comfy perch from which to watch your successor try to carry on your battles.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.