Best Buy Co. is going to test special sections in its stores dedicated to home retailer Ikea, as the Richfield-based electronics chain tries to boost consumer spending by showcasing its products in domestic settings.
The initiative will begin in the fall with 1,000-square-foot areas debuting in 10 stores in Florida and Texas, the companies said Thursday.
The pilot aims to make it easier for customers to integrate Best Buy appliances into Ikea-designed kitchens and laundry rooms. The departments will also mark the first time that the Swedish company offers services and products at another U.S. retailer.
The partnership came about by meshing “two great brands in very complimentary spaces,” said Best Buy Chief Merchandising Officer Patrick McGinnis in an interview. “There’s a lot of relevance that we have with our appliance business.”
The companies declined to comment on the financial agreements of the partnership.
Best Buy’s sales have declined the last three years after a spending surge on electronics during the pandemic inflated results. Now the chain is looking for other categories for growth, made even more crucial after a push into health care has disappointed so far.
The retailer already offers kitchen design services in some stores and online. McGinnis said that the collaboration with Ikea “fits quite naturally.”
Ikea is also trying to revive sales after the privately held retailer posted a 4% drop in currency-adjusted revenue in its most recent fiscal year. To lure more shoppers, it has cut prices and invested in its online capabilities. Getting into Best Buy locations may help introduce the brand to new customers.
“We’ve been listening to our consumer and seeing the opportunity to be more convenient and accessible for them,” Rob Olson, Ikea’s chief operating officer in the U.S., said in an interview.
Ikea employees will staff these departments, and Best Buy workers will be present to advise on appliances and electronics.
The companies are also testing using Best Buy stores as pickup locations for Ikea orders. Ikea only has about 50 locations in the U.S., while the electronics chain has roughly 900 stores in America under the Best Buy banner.
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