Samsung to Open 1,500 Mini Stores in Best Buy

by Christopher Freeburn | April 4, 2013 10:49 am

Samsung to Open 1,500 Mini Stores in Best Buy

Best Buy 300x199 Samsung to Open 1,500 Mini Stores in Best Buy[1]Starting next week, 500 Best Buy (NYSE:BBY[2]) stores will feature mini-stores promoting Samsung products[3] 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.

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[4]). Competition between to the two companies has become heated[5] 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[6].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/Best-Buy.jpg
  2. BBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBY
  3. feature mini-stores promoting Samsung products: http://www.bloomberg.com/news/2013-04-04/samsung-presses-apple-fight-with-mini-stores-in-best-buy.html
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. between to the two companies has become heated: http://investorplace.com/2013/03/wednesday-apple-rumors-iphone-forecast-to-gain-market-share/
  6. plan to turnaround the struggling big box retailer: http://investorplace.com/2013/03/best-buy-plans-stores-within-a-store/

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