Macy’s to test Best Buy store-within-a-store

Posted by on Sep 8, 2015 in Levin Consulting Blog | No Comments

Best Buy and Walmart, to name a few, offer the store-within-a-store concept to give customers a dedicated offering of branded products. Best Buy is taking that one step further. This week, Macy’s announced that they are testing testing Best Buy CE Shops within Macy’s that will be staffed by Best Buy sales associates. This initiative is to spur growth and we see this as a win for both retailers.

Macy’s gets the advantage of bringing in added traffic, with the positive exposure of name brand products (they are the ultimate name brand store). Best Buy gets incremental volume, and more importantly, can show its key vendor partners the advantages of partnering with Best Buy extend beyond the Store within a Store shops at Best Buy to other high traffic outlets that enhance the image of the products (as Macy’s is considered a quality partner for higher quality brands).

We see this as an opportunity for Best Buy to increase their attempts at having exclusive offerings, at differentiating from amazon and as a step toward increasing their footprint without the risk of the additional real estate. This could well turn into a program like the Dixon’s store within Harrod’s – a very high volume and profitable partnership for both retailers. (click here to read article)