Best Buy dedicates space for Samsung products in store-within-store concept

By Nicel Jane Avellana

Feb 27, 2014 01:39 PM EST

Shoppers who have shopped at Best Buy recently have found that it has a new look and feel to it. That's because the retailer has rolled out its design concept of stores-within-stores. Almost every Best Buy store has an area specially for Samsung products while around half of the stores feature Windows products, TechCrunch reported.

Best Buy explained the store-within-a-store idea when it released its 2014 fourth quarter results. Based on the release, the retailer still squeezed a profit despite sales dropping slightly to $14.47 billion in the first half from $14.92 billion, the report said.

According to Best Buy, there are 1,400 Samsung and 600 Windows stores-within-a-store that are now open for business. Those who recently visited any of the 1,495 retail outlets of the company in the US will find a difference, with the stores looking more like exhibition halls than a warehouse retailer, the report said.

Under the new arrangement, the aisles are no longer filled with shelves. Rather, there are logical areas that cater specifically to a particular brand or lifestyle. For example, Windows tablets are placed on the Windows table while Samsung products are arranged in the area specifically meant for them, highlighted in their signature bright white and blue colors. Customers know they're looking at Apple products because of the white apple that marks it, the report said.

While brands purchasing store space is hardly a novel concept, the space they get can typically just be found on shelves at the end of the aisle. Apple started the store-within-a-store idea a few years ago so it could showcase its products in a special place. The concept was clearly successfully as other brands imitated, the report said.

With the retail landscape quickly evolving, Best Buy is doing its best to cope and remain competitive. Its financial report revealed that one way it intends to do so is by capitalizing on well-known brands, the report said.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics