Best Buy is the largest specialty consumer electronics retailer in the U.S., selling laptops, smartphones, TVs, appliances, gaming hardware, and accessories through roughly 1,068 stores in the U.S. and Canada, plus its e-commerce platform. Online sales represent roughly 30–40% of domestic revenue, with about 45% of online orders picked up in stores, underlining the continued role of the physical footprint. Best Buy's core business model is thin-margin product retail, where profitability is heavily dependent on sales volume and operating leverage over a largely fixed cost base. To supplement core retail margins, Best Buy is scaling two higher-margin businesses: Best Buy Ads, a retail media network that sells advertising to vendors and brands leveraging first-party customer data (over $900M in gross ad collections in FY26), and Best Buy Marketplace, a third-party e-commerce platform launched in mid-FY26 that generated roughly $300M in GMV in Q4 FY26 alone. Both businesses contribute to gross profit and are expected to drive roughly 30 bps of gross margin improvement in FY27. Best Buy also sells directly to businesses through Best Buy Business, and offers Geek Squad setup, repair, and warranty services. The company's differentiation argument centers on in-store expert staff, hands-on vendor demo environments, and bundled services — capabilities online-only competitors cannot easily replicate. Best Buy's largest product category is computing and mobile phones, which is benefiting from AI-enabled PC upgrade cycles.