764478--5/2/2007--BEST_BUY_CO_INC

related topics
{system, service, information}
{acquisition, growth, future}
{product, market, service}
{personnel, key, retain}
{customer, product, revenue}
{condition, economic, financial}
{financial, litigation, operation}
If we do not anticipate and respond to changing consumer preferences in a timely manner, our operating results could suffer. Our growth is dependent on the success of our strategies. Our results of operations could deteriorate if we fail to attract, develop and retain qualified employees. We face strong competition from traditional store-based retailers, Internet businesses and other forms of retail commerce, which could materially affect our revenue and profitability. Our growth strategy includes expanding our business, both in existing markets and by opening stores in new markets. Risks associated with the vendors from whom our products are sourced could materially adversely affect our revenue and gross profit. We are subject to certain regulatory and legal developments which could have a material adverse impact on our business. We rely heavily on our management information systems for inventory management, distribution and other functions. If our systems fail to perform these functions adequately or if we experience an interruption in their operation, our business and results of operations could be materially adversely affected. A disruption in our relationship with Accenture, who manages our information technology and human resources operations, could materially adversely affect our business and results of operations. Failure to protect the integrity and security of our customers information could expose us to litigation and materially damage our standing with our customers. Failure in our pursuit or execution of new business ventures, strategic alliances and acquisitions could have a material adverse impact on our business. We are highly dependent on the cash flows and net earnings we generate during our fourth fiscal quarter, which includes the majority of the holiday selling season.

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