In an attempt to shrink its average store size from 45,000 square feet to 36,000 square feet, Best Buy is apparently considering leasing space in current stores to other retailers. Uses being considered by management include grocer, beauty suppliers and home-furnishings retailers.
The retailer is doing this in the midst of recent sales slides as competition from online competitors heats up. Among the names mentioned by brokers in the Los Angeles times as possible space takers are Trader Joe's and Sephora, which already leases up space in many JCPenney stores.
The move is reflective of a larger trend in retail. "Big-box has already seen its heyday," the Times quotes Keyblanc Capital Markets analyst Brad Thomas.
Like the JCPenney-Sephora partnership, other retailers are trying to do the same thing. Maybe the most notable is Sears, which has a Whole Foods coming into one of its stores, is in talks with Forever 21 and has a golf chain inside of some of its units.
Do you see grocery and electronics shopping as a good mix, or will Best Buy have trouble finding other retailers to partner with?
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