Following his highly successful turnaround plan for the retailer, Best Buy Chairman and CEO Hubert Joly has confirmed that he will be stepping down from his post, and passing the torch on to Corie Barry, the retailer's current CFO and Chief Strategic Transformation Officer.
The Best Buy Co., Inc. board of directors has elected Barry to the position of CEO, effective following the company's annual meeting of shareholders on June 11, 2019. Joly will not be leaving the company, but will rather transition to the newly-created role of Executive Chairman of the Board. The change, says Best Buy, was made as a reflection of the board's succession planning process, and is designed to "provide leadership continuity as the company continues to execute its strategic growth initiatives." Along with her promotion, Barry will also join the board of directors, making the total count 13.
Since joining Best Buy in 2012, Joly has led the company through its successful, customer-focused Renew Blue transformation, which delivered improved customer satisfaction, market share gains, comparable sales growth and improved margins, while achieving US$1.4 billion in cost reductions and efficiencies to fund investments in Best Buy's organic growth. In 2017, he launched the Best Buy 2020: Building the New Blue strategy. During his talk at the Adobe Summit in Las Vegas last month, Joly discussed the changes he spearheaded at Best Buy under that strategy. "Seven years ago," he said, "people thought we were going to die." Various strategies were implemented in an effort to foster growth, including adjusting pricing to fall in line with its biggest competitor, Amazon; improving the website, search, product information, and reviews; offering fast and free shipping; investing in staff to reduce turnover; partnering with vendors like Samsung, Apple, and Google for store-in-store brand concepts; reducing the carbon footprint; and enhancing the Geek Squad team to make them more than just IT guys who could hang TVs. "We're not in the business of selling products and doing transactions," he told Adobe Chairman and CEO Shantanu Narayen at the event. "Our purpose is to enrich lives with the help of technology."
Hubert Joly chatting about the Renew Blue strategy with Shantanu Narayen, Chairman and CEO of Adobe, at the Adobe Summit last month in Las Vegas.
The moves appear to be working. In fiscal year 2019, Best Buy essentially delivered on its fiscal 2021 revenue and non-GAAP operating income targets two years ahead of schedule and returned US$2 billion to shareholders through dividends and share repurchases.
In his new position as Executive Chairman, Joly will continue to lead the board of directors while advising and supporting the CEO on key matters, such as strategy, capability building, M&A, and external relationships. In addition, he is expected to assume certain responsibilities at the request of the CEO, in areas like government affairs, community relations, and leadership development. This will allow the company to continue to benefit from Joly's skills and experience.
"I am so proud of the strategic, financial and cultural transformation we have achieved, and with Best Buy well positioned for continued growth well into the future, now is the right time to begin a leadership transition," says Joly. "We have a tremendously talented, deep and dedicated leadership team at Best Buy, driven by our strategy and purpose to enrich lives with technology, build lasting relationships with customers and make positive impacts on society. Corie has played a critical role in developing and executing the proven growth strategy in place today, and I am confident she has the vision, skills, experience and leadership capabilities necessary to be our CEO. I look forward to working with her closely in my new role as we seek to continue Best Buy's growth trajectory, deliver on the full potential of our strategy and create additional long-term value for our shareholders, employees and customers."
Adds Barry: "I am deeply honoured to have been selected as Best Buy's next CEO, and look forward to working closely with Hubert, our Board, and the exceptional Best Buy family to continue the momentum we have been able to achieve. Today's technology and consumer landscape creates tremendous opportunities for Best Buy to further expand and deepen relationships with our customers and employees, while continuing to deliver shareholder value."
Barry's current responsibilities include strategic transformation and growth, digital and technology, global finance, investor relations, enterprise risk and compliance, integration management, and Best Buy Health, which includes GreatCall.
She joined Best Buy in 1999 and has held a variety of financial and operational roles within the organization, both in the field and at the corporate campus. She became CFO in 2016 and, prior to that, served as the company's chief strategic growth officer. Barry has also served as senior vice president of domestic finance and as the interim leader of Best Buy's services organization.
Prior to Best Buy, she worked at Deloitte & Touche. She holds bachelor's degrees in accounting and management from the College of Saint Benedict, where she also serves on the board of trustees. Additionally, she serves on the board of directors for Domino's Pizza.
As part of the transition, Best Buy announced an additional change to its leadership team, also effective on June 11. Mike Mohan, current U.S. Chief Operating Officer, will be promoted to President and COO. The company will conduct an internal and external search for a new CFO.
As U.S. COO, Mohan's responsibilities include oversight of all customer channels for Best Buy's domestic business including retail, e-commerce and customer experience, services, home, and Best Buy Business. In addition, he leads category management, merchandising, marketing, supply chain, and real estate for Best Buy's core U.S. business.
He joined Best Buy in February 2004 as vice president of the digital imaging business group and has assumed additional responsibilities throughout his career across nearly all of Best Buy's product and business categories. He has overseen the launch of thousands of store-within-a-store locations in partnership with leading technology vendors, the expansion of Best Buy's Magnolia and Pacific Kitchen & Home brands, the evolution of the company's private-label brands, and the rise of emerging categories, such as 4K UHD TVs, health and fitness devices, and connected home products.
Before joining Best Buy, Mohan was vice president and general merchandise manager for Good Guys, an audio/video specialty retailer that operated 79 stores in the western U.S. He serves as a trustee for the Boys & Girls Clubs of America, and serves on the board of directors for Bloomin' Brands, Inc.