Best Buy Forms Web Subsidiary

Best Buy has established an Internet subsidiary, BestBuy.com, which will absorb all of the consumer electronics chain's e-commerce personnel and assets and set Web strategies for the brick-and-mortar retail giant.John C. Walden, is the new President of Best Buyís Electronic Commerce unit. Though Best Buy's e-commerce site has been selling CDs since March 1997 and DVD movies since November 1998, Walden says that Best Buy.com plans to ""substantially expand its Internet offerings within the next 12 months.""Dick Schulze, Chairman/CEO of Best Buy, said the new subsidiary will ""facilitate [BestBuy.com's] expansion, foster the recruitment of experienced Internet talent and provide the flexibility to raise independent capital."" Schulze added, ""We see e-commerce as a complement to our retail stores, offering increased shopping options to our brand loyal customers. The Internet allows us to build incremental sales and pursue new business opportunities.""