Richard M. Schulze

Richard M. Schulze is an American businessman. He is the founder of Best Buy and previously served as chairman and CEO. He lives in Bonita Springs, Florida.

Early life and education

Schulze was born and raised in Saint Paul, Minnesota, where he dropped out from Central High School. He subsequently spent time in the U.S. Air Force with the Minnesota Air National Guard. After the Air Force, he worked as a consumer electronics salesman.

He has an honorary degree from the University of St. Thomas in Saint Paul.

Career

In 1966, mortgaging his home, he founded an audio equipment store named Sound of Music in Saint Paul. The company expanded to nine stores and after a tornado destroyed one, he had a "tornado sale" at one location with a very large selection of goods and low prices. The sale was a hit and he renamed the chain Best Buy and shifted the model to a superstore format with 18,000 square foot stores, everyday low prices, and a heavy advertising budget. The format was very popular and thanks to increased demand for consumer electronics (especially with the advent of VCRs), the chain grew to forty stores in 1989. Thereafter, he eliminated the commission model (customers disliked aggressive sales) and expanded Best Buy's offerings to include computer software, music, movies, and computer hardware. In 1994, he increased the average store size to between 45,000 and 58,000 square feet. In 1995, the chain had $5 billion in sales and 155 stores. In 1996, Best Buy added appliances and kitchen utensils to its lineup.