Samsung to Open 1,500 Mini Stores in Best Buy

The move is seen as a challenge to Apple

   

Samsung to Open 1,500 Mini Stores in Best Buy

Best Buy 300x199 Samsung to Open 1,500 Mini Stores in Best BuyStarting next week, 500 Best Buy (NYSE:BBY) stores will feature mini-stores promoting Samsung products under a deal between the manufacturing giant and the struggling retailer.

Investors liked the news, sending Best Buy shares soaring almost 8% in Thursday morning trading.

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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.


Article printed from InvestorPlace Media, http://investorplace.com/2013/04/samsung-to-open-1500-mini-stores-in-best-buy/.

©2014 InvestorPlace Media, LLC

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