Apple's retail strategy has been enormously successful. Earlier this year, a report from research company RetailSails determined that Apple stores bring in $5,600 per square foot of retail space. That's a lot of dough. No wonder Microsoft decided to take a leaf out of Apple's book and launch its own (and very similar) Microsoft stores. Now it seems another major company is about to follow Apple's lead.
The Wall Street Journal reports that Best Buy is testing out a new retail design that brings the design of Best Buy stores a bit closer to what you see at the Apple Store. According to WSJ, the store features a more stream-lined and less busy layout with a Solution Central desk at the heart of the store. This is manned by Geek Squad workers in white shirts and black ties and is similar to Apple's Genius Bar.
Other elements inspired by Apple's retail efforts include the ability to pay for purchases in multiple locations around the store and Best Buy's desire to connect customers with employees who can answer questions and help program equipment. The TV section is being downsized, since sales have apparently dropped in that department anyway, and tablets, smartphones, and ereaders are getting a bigger section, since those are selling well these days.
Best Buy says the new store design pulls away from the strategy of displaying every conceivable gadget and instead tries to connect customers with helpful staff. The new design is described as just one of the steps Best Buy is taking to turn its retail strategy around. The company plans to convert 60 of its big box stores to this new format, which is 20 percent smaller than the usual 58,000-square-foot store.
Apple only makes that much money from charging some of the highest profit margins in the world. Since Best Buy's attempt to do that with cables is obviously failing, I don't see how they think this will make them survive.
Good bye Best Buy, I cheer for your death but feel sorry for the jobs that have and will be lost from it. Hope they find jobs shortly after your demise.
I agree. Too bad there are a lot of dumb people in the world to blindly buy Apple products just cuz their friends got one....
If Best Buy dies, then what will I go to to see the product before I buy online?!?!
they also fill their stores with stock instead of fufilling preorder obligations.
i wont go into much detail, but only deal with them if they are the only source for your product you want.
Best Buy's highest profit isn't from cables. It is from Services.
From reading the article, is going to now be the heart of the store.
I have had my TV ISF calibrated from them and very happy from their work.
All joking aside Best Buy needs to focus on competing with newegg and amazon on price. The store front should be in a few in major cities with extremely qualified and well paid professionals. The problem they have today is they have McDonald's quality staff trying to sell product at high end restaurant prices. If they want to charge a little more, fine but give people value otherwise they will just be a pretty window people use to look at before they head over to newegg or amazon.