01Computing and mobile phones (~45% of revenue) - laptops, tablets, smartphones, accessories
02Consumer electronics (~25%) - TVs, home theater, gaming, wearables
03Appliances (~20%) - major appliances, small kitchen appliances
04Services (~10%) - Geek Squad tech support, installation, extended warranties, membership programs
Best Buy operates a hybrid model combining physical retail with omnichannel fulfillment. Gross margins of 22.6% reflect thin product margins (15-20% on hardware) offset by higher-margin services (40-50%). Competitive advantages include Geek Squad's installed base, vendor relationships providing exclusive SKUs, and same-day delivery/installation capabilities. Operating leverage is moderate - stores represent fixed costs but labor is partially variable. The company generates significant cash through inventory turns (8-9x annually) and vendor payment terms.