Richard M. Schulze

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Richard M. Schulze
Born	Richard Michael Schulze (1941-03-25) March 25, 1941 Saint Paul, Minnesota, U.S.
Occupation	Businessman
Known for	Founder of Best Buy
Spouse(s)	Sandra J. Schulze (deceased) Maureen Schulze
Children	10

Richard Michael Schulze (born March 25, 1941) is a billionaire entrepreneur from the United States. He established Best Buy and served as its chairman and chief executive officer. In the 2016 Forbes ranking of global billionaires, he was positioned at number 722, with an estimated net worth of US$2.4 billion.

Early life and education

Born and raised in Saint Paul, Minnesota, Richard M. Schulze completed his secondary education at Central High School. Following this, he served in the U.S. Air Force as part of the Minnesota Air National Guard. After completing his military service, he pursued a career as a consumer electronics salesperson.Template:Fix/category

He holds an honorary degree awarded by the University of St. Thomas located in Saint Paul.Template:Fix/category

Career

In 1966, Schulze took out a mortgage on his residence to launch an audio equipment retail outlet called Sound of Music in Saint Paul.Template:Fix/category The business grew to encompass nine locations. After a tornado damaged one store, he organized a "tornado sale" at a different branch featuring an extensive range of products at discounted prices. This event proved highly successful, prompting him to rebrand the chain as Best Buy and transition to a superstore concept characterized by stores approximately 18,000 square feet in size, consistent low pricing, and significant advertising expenditure.Template:Fix/category This retail approach gained popularity, especially due to rising consumer interest in electronics such as VCRs, allowing the chain to expand to 40 outlets by 1989.Template:Fix/category Subsequently, he discontinued the commission-based sales system—responding to customer preferences against pushy sales tactics—and broadened Best Buy's inventory to include computer software, music, films, and computer components.Template:Fix/category By 1994, the average store footprint had increased to between 45,000 and 58,000 square feet.Template:Fix/category The following year saw sales reach $5 billion across 155 stores.Template:Fix/category In 1996, Best Buy further diversified its product range by incorporating appliances and kitchenware.Template:Fix/category

In May 2012, Schulze announced his resignation as chairman of Best Buy following an inquiry that revealed he was aware of the CEO's relationship with a female employee but failed to inform the audit committee.

On August 6, 2012, it was revealed that Schulze intended to acquire Best Buy through a buyout offer; at that time, he already held a 20% stake in the company. This announcement led to a modest increase in Best Buy's stock price. However, by late February of the following year, negotiations between Best Buy and Schulze concluded without agreement. He and private equity partners sought three seats on the board in return for purchasing a minority interest but were unable to secure necessary financing.

On March 25, 2013, Best Buy Co. Inc. announced that Schulze would return to the company as chairman emeritus—a new role created for him. Additionally, two former executives aligned with Schulze—Brad Anderson and Al Lenzmeier—were appointed as his proxies on the board of directors; these individuals had also supported his previous attempt to acquire the firm.

Philanthropy

Schulze has committed to donating $1 billion toward charitable causes and educational initiatives. In 2000, he contributed $50 million to the University of St. Thomas to establish a new entrepreneurship school. He serves as a trustee and chairperson of the Richard M. Schulze Family Foundation (RMSFF), which he created after stepping down as Best Buy's CEO in 2002. Headquartered in Minneapolis, this foundation concentrates its efforts on education, healthcare, human services, and medical advancements within Minnesota and Florida. By 2018, RMSFF ranked among the five largest private foundations in Minnesota.

In 2006, RMSFF provided nearly $49 million to the Mayo Clinic to launch a cancer research center in Rochester, Minnesota. Two years later, the foundation granted $40 million to the University of Minnesota for diabetes research. As part of its entrepreneurship program, RMSFF allocated $500,000 annually by 2015 to support scholars, faculty members, and an online platform for idea exchange. Additionally, the foundation has supported the Catholic Schools Center of Excellence by enhancing enrollment efforts at Minnesota Catholic schools through teacher training, technology upgrades, and resource sharing. Since 2016, RMSFF has also backed a nonprofit organization delivering family assistance services in Southwest Florida.

In 2023, the foundation awarded $4 million to Children’s Minnesota for a pediatric hybrid intraoperative MRI neurosurgery suite. That same year, it donated $20 million to NCH Healthcare System to build a cardiac and stroke center in Naples, Florida. Furthermore, RMSFF contributed $25 million to Allina Health for improvements at Abbott Northwestern Hospital in Minneapolis.

Personal life

Schulze resides in Naples, Florida. He practices the Catholic faith and was married to Sandra J. Schulze until her passing in 2001; together they had four children. Subsequently, he wed Maureen Schulze, though their marriage ended in divorce in 2021. On November 9, 1991, the Governor of Minnesota, Arne Carlson, officially proclaimed the day as Richard M. Schulze Day.

External links

• Forbes 400
• Best Buy News Center: Biography: Richard Schulze

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