Joly, who is French, will leave Carlson, the hospitality firm he has led since 2008, and replace interim CEO G. Mike Mikan, who will stay on until Joly comes on board, Best Buy said in a statement.
As Best Buy is struggling to hold onto its substantial presence as a technology seller and facing stiff competition from Internet retailers, the firm touted Joly's track record reviving ailing companies.
"Over the last 15 years, Joly has developed a track record of successful turnarounds and growth in the media, technology and services sectors," the statement said.
Joly's resume includes stints at video game business Vivendi, "which included the development of a massive online presence with Diablo II and World of Warcraft," Best Buy said.
He also helped turnaround troubles at French technology firm EDS and Carlson Wagonlit Travel, which he headed before taking over its parent company Carlson.
Best Buy Chairman Hatim Tyabji said Joly was "an outstanding candidate for this position."
Board member Kathleen Higgins Victor said Joly was "a strategic thinker with deep financial acumen."
Joly said Best Buy "has extraordinary assets --- including its 167,000 employees, its huge customer base, its distribution and service capabilities."