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The main advantage of Best Buy, the largest electronics retailer in the U.S., is that, more than many other retailers, it really sets a high standard for customer satisfaction.
The company trains its sales employees to know the ins and outs of all the hot gadgets, gizmos and appliances it sells. And as consumer electronics get more complicated, sales people who can explain to the average customer exactly what they'll be purchasing become more valuable.
Customer service and emphasis on growth have widened the gap between Best Buy and number two player Circuit City. While Circuit City has struggled to make money and faces a potential buyout from video rental company Blockbuster, Best Buy's profits continue to grow.
Best Buy's earnings are expected to grow at an annual rate of 15% a year for the next few years. "They, in a sense, outgrew Circuit City," said Anthony Chukumba, senior analyst with FTN Midwest Securities Corp.
And Best Buy is also expanding internationally. It is opening new stores in Canada and China and recently purchased d half of CarPhone Warehouse, the largest electronics vendor in Europe.
NEXT: Avon Products, Inc.
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