Investors liked the news, sending Best Buy shares soaring almost 8% in Thursday morning trading.
Each store-within-a-store will occupy about 460 square feet of retail space. The mini-stores — dubbed Samsung Experience Shops — will be placed close to the big box stores’ entrances, giving them premium positioning, Bloomberg notes.
With the move, Samsung is opening yet a new front in the battle with mobile device rival Apple (NASDAQ:AAPL). Competition between to the two companies has become heated in recent years as Samsung’s smartphones have seen their popularity with consumers jump.
Apple, which accounts for 38% of U.S. smartphone sales, has its own promotional areas inside Best Buy stores, in addition to a worldwide chain of successful retail stores. Samsung smartphones comprise 21% of U.S. sales.
Neither Samsung nor Best Buy has revealed the financial terms of the new mini-stores. About 1,000 other Best Buy and Best Buy Mobile stores will get somewhat smaller Samsung boutiques by June.
Adding more mini-stores to Best Buy locations has been part of new CEO Hubert Joly’s plan to turnaround the struggling big box retailer.