Early Life
Richard Michael Schulze was born in Saint Paul, Minnesota, on March 25, 1941. He attended Central High School and later served in the U.S. Air Force with the Minnesota Air National Guard. After his service, Schulze began his career in the consumer electronics industry.
Rise to Success
In 1966, Schulze, with his personal savings and a second mortgage on his family's home, founded Sound of Music, an audio equipment store. The company quickly expanded, and by 1969, Schulze bought out his business partner. A pivotal moment came in 1981 when a tornado struck a store, leading to a highly successful "Tornado Sale" featuring low prices, which inspired the superstore model. In 1983, the company was renamed Best Buy, and it expanded its product offerings and superstore format, which was key to its growth. Schulze served as CEO from 1983 to 2002.
Key Business Strategies
Best Buy's success can be attributed to several key strategies. The superstore concept, with a high-volume, low-price model, set the foundation for expansion. The company also expanded its product offerings to include various consumer electronics, home appliances, and services such as Geek Squad. Moreover, the company has adapted to changing consumer preferences and competition from online retailers by embracing e-commerce and enhancing customer experiences.
Philanthropy
Schulze is actively involved in philanthropy. He founded the Richard M. Schulze Family Foundation, focusing on education, health, human services, and medicine. He has made significant donations to the University of St. Thomas and the University of Minnesota. Schulze has also supported cancer research initiatives.