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The Most Important Retail Head in Europe

Earlier this week, Best Buy announced that Scott Wheway has been named CEO of Best Buy Europe - the new company created by the JV between Best Buy and The Carphone Warehouse. Wheway will take on responsibility for all of Best Buy Europe's operations, including The Carphone Warehouse's 2,450 stores across nine European countries, plus the 'big box' stores which are scheduled to be launched in the UK next year. Mr Wheway spent some 20 years in Tesco [and not just in the UK - his last posting for Tesco was in Japan], and was most recently the Managing Director of Boots the Chemist.

Microsoft Stores

Back in February, we posted a note on the appointment of David Porter as Microsoft's Corporate VP of Retail Sales. Well, now it looks as if we're moving ever closer to the opening of Microsoft's first stores in the US.

Earlier this week, Gizmodo revealed a leaked slide deck from Lippincott - a design and brand strategy consultancy. Within the body of the deck, Lippincott explained that it has been asked to assist Microsoft and its 'approved partners' with the development of a new company owned retail store that "provides a transformative customer experience, shifts current perceptions of the brand, and supports the functional operating requirements of the business groups".

As Gizmodo explains: "Essentially, Microsoft is taking the best elements from the Apple Store, Sony Style and other 'flagship' stores." There will be a Digital Media Wall which wraps around the entire store. There will be 'stage areas' for Windows 7, Windows Media Centre, and Windows Mobile. And there will be an Answers Bar or Guru Bar or Windows Bar - well, something very similar to Apple's Genius Bar.

We now learn from CNET that two stores have already been identified - one in Scottsdale, Arizona, and the other in Mission Viejo, California. It is understood that the store in Mission Viejo will be in the same mall as the local Apple Store.

Best Buy Europe

Earlier this week, The Carphone Warehouse published its Q1 2010 trading update. The division between The Carphone Warehouse's Talk Talk business and its 50% stake in Best Buy Europe is now clearer than ever. And with the launch of Best Buy Europe's 'Big Box' strategy in 2010, the disconnect between these two businesses will become even more overt. Meanwhile, total revenues for Best Buy Europe increased 6% year-on-year to £773mn, although on a constant currency basis, this increase was just 0.7%. On a like-for-like basis, revenues grew 5.4%, or just 0.2% on a constant currency basis.

Amazon Q2/09

Amazon has just published its results for Q2 2009. Overall, revenues increased by 14% year-on-year, while operating income decreased by 27%, and net income decreased by 10%. Excluding adverse exchange rates, Amazon's international segment - that's operating companies in China, France, Germany, Japan and the UK - grew revenues by 28%. At constant currency, this growth was just 16% year-on-year.

For worldwide electronics [which includes other 'general merchandise' not included elsewhere], revenues grew by 35% to $2.07bn at constant currency. Without the adverse impact of unfavourable exchange rates, this would have represented growth of 41%. This result compares very favourably with Amazon's 'traditional' media segment [books, DVDs and such like] which grew by a mere 1% year-on-year.

Logitech Q1/10

Logitech has announced its results for Q1 FY2010, and revenues are down once again, this time by 36% year-on-year [although when adjusted for constant currency, by 33%]. Logitech has continued to say that revenues have been adversely affected by de-stocking in the channel. Gerald Quindlen, CEO, said: "During Q1 we made substantial progress in helping our channel partners reset their new, lower levels of weeks of supply. While there is more progress to be made, we continue to expect this reset to be completed by the end of Q2".