How a tornado in 1981 transformed a small audio shop into a retail giant.

Cultures · Published 29 September 2026 Swipe more like this →

In short: Best Buy began as a modest Minnesota audio store called Sound of Music. When a tornado destroyed its most profitable location, a desperate parking lot sale sparked a high-volume, low-price business model that would eventually define the company and propel it to become the largest consumer electronics retailer in America.

Founded in 1966 by Richard M. Schulze and James Wheeler, the company originally focused on high-fidelity stereos. The pivotal shift occurred in 1981 after a tornado hit the Roseville, Minnesota store. Schulze liquidated damaged stock in the parking lot, advertising 'best buys' to clear inventory. The event was so successful that he adopted this high-volume, low-price strategy for his new superstore concept in Burnsville, Minnesota, which launched in 1983 under the name Best Buy Company, Inc.

Throughout the 1980s and 1990s, the company aggressively refined its retail experience. In 1988, it introduced 'Concept II' stores, which removed commissioned salespeople to create a relaxed, self-help environment. While this move initially alienated suppliers like Sony and Whirlpool, the company's subsequent growth eventually brought them back. By 1992, Best Buy reached $1 billion in annual revenue, outlasting rivals like Highland Superstores, which filed for bankruptcy that same year.

The 2000s saw rapid international expansion and diversification, including the acquisition of Geek Squad in 2002 and entry into markets like China, Mexico, and Europe. However, the 2010s brought significant headwinds as online shopping eroded traditional brick-and-mortar revenues. Under CEO Hubert Joly, who took over in 2012, the company pivoted toward a 'Connected Store' format and 'store-within-a-store' partnerships with brands like Apple and Samsung. Despite these efforts, the company has faced ongoing challenges, including the 2018 closure of its standalone mobile stores and significant layoffs during and after the COVID-19 pandemic.

Today, Best Buy remains a dominant force in electronics, though it continues to adapt to shifting consumer habits. From exiting the analog television market in 2007 to reducing physical music inventory in 2018, the company’s history is defined by constant, often reactive, transformation. Its journey from a local audio shop to a Fortune 500 corporation illustrates the volatile nature of retail, where success is often tied to how quickly a company can pivot in the face of disaster or technological change.

General information, not professional advice. Spotted an error? Flag the card or see corrections and complaints.

Intellect Plus is a visual educational discovery platform for exploring fascinating facts and ideas. Brain Food, Not Brain Rot. What is Intellect Plus?

Related

• The $1.5 billion retail gamble that cost a retail giant its crown
• How a technology retail giant lost its way in the digital age
• How a 1959 organ shop became America's largest music retailer
• How a Sacramento drugstore became a global music empire before its dramatic 2006 collapse
• How a discount grocer built an empire by selling its own stores to others
• From factory floors to the halls of Congress
• A rare career spanning the Pentagon, the Senate, and the front lines of combat
• From Punk Rocker to Politician: The DIY Ethos of Beto O'Rourke
• Sir Bernard Spilsbury: The forensic legend whose courtroom infallibility may have masked judicial errors
• The famous Betsy Ross flag design might be a historical myth
• How a Pennsylvania county named after an English shire became a cultural crossroads
• How a rejected demo became the defining synth-pop anthem of the early eighties

More in US culture · More in Cultures · Latest · A–Z · All topics