Filed under: Launches, Wal-Mart (WMT), Marketing and advertising, Best Buy (BBY)

In the field of retail, there are surge years and flat years. Finding ways to grow when the chips are down takes innovative thinking and quick action, and that strategy appears to be at the root of why Best Buy Inc. (NYSE: BBY) is able to open newer stores in existing markets without cannibalizing sales from older stores. How does it manage this? The premise is pretty simple, and it will be playing out in retail sectors from general merchandise to electronics from this point forward.

Similar to discounter Wal-Mart Stores, Inc. (NYSE: WMT), Best Buy grew in the 1990s by using the “big box” strategy of having all merchandise in its stables under one large roof. In effect, the “one stop shop” mentality, although Best Buy’s was limited to consumer electronics more than any other category. These are different times, and consumer niches are now the fuel for growth. As such, the nation’s largest consumer electronics retailer is opening newer stores in markets it already serves that tailor product selections to the surrounding consumer demographics.

In some cases, providing only niche stores can kill you. But, when you add niche stores to the mix with “do everything” locations in the same market, things have a tendency to work out rather well.

Continue reading Best Buy (BBY) sees success with customized new stores

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This entry was posted on Friday, September 7th, 2007 at 4:08 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.