In First Store Partnership, Ikea Opening Mini-Showrooms in Best Buys
In an exciting collaboration, Best Buy and Ikea are introducing a “shop-in-shop” concept. Beginning this fall, ten Best Buy locations in Florida and Texas will feature 1,000 square foot Ikea mini-showrooms. This marks Ikea’s first collaboration of this kind with another retailer.
The Swedish home goods giant will present kitchen and laundry products within these mini-showrooms at select Best Buy outlets. The store-in-stores will also highlight Best Buy appliances, creating a unique synergy between the two brands.
These initial ten locations in Florida and Texas will be reminiscent of similar retail partnerships, such as the Ulta hubs found in Targets and Sephora mini-stores within Kohl’s locations. Best Buy has yet to specify when or if this concept will be rolled out to other states.
This initiative shines a light on Best Buy’s strategic move to broaden its offerings beyond the traditional electronics market. This includes the forthcoming introduction of a third-party marketplace. For Ikea, this is a valuable opportunity to penetrate new markets and expand its presence in the U.S.
“Our focus is on creating new experiences for our customers that help them discover what technology can do for them. This partnership with Ikea exemplifies how we’re bringing this to life in our stores,” noted Patrick McGinnis, Chief Merchandising Officer at Best Buy.
These pioneering locations will have Ikea designers on staff, offering consultation services to personalize the customer experience. This hands-on approach aligns with Ikea’s strategy to not only sell products but also provide design assistance.
Additionally, two of these stores will double as Ikea fulfillment centers. This will enable customers to conveniently pick up their Ikea orders from a designated Best Buy location, enhancing the omni-channel shopping experience.
Ikea is known for its cost-effective and straightforward products and is currently extending its footprint in the U.S. Part of this strategy includes smaller format stores, such as the Plan & Order stores. This collaboration aligns with their objective of expanding their reach and accessibility to customers.
“This new partnership is about bringing the Ikea experience closer to where people live,” stated Rob Olson, Chief Operating Officer at Ikea U.S.
The company plans to invest a substantial amount, around $2.2 billion, in the U.S. market. This investment includes three new store openings in Texas, slated for the end of this year or early 2026. Currently, there are ten Ikea stores in Texas and six in Florida.
The larger Ikea stores that U.S. customers are familiar with average about 300,000 square feet, such as the one near the Mall of America in Bloomington. The newly planned smaller hubs within Best Buy will be more compact, averaging around 1,000 square feet.
Ikea currently operates 487 stores worldwide, with 52 located within the U.S. “Our vision for a perfect shop-in-shop experience is simple: We want customers to be able to envision their life at home,” Olson shared.
In terms of business metrics, Best Buy has faced a decrease in comparable sales across all quarters since the fiscal year 2023, except for a 0.5% growth in the fourth quarter. Best Buy is set to release its second-quarter earnings report on August 28.
The company also recently sold its health tech startup, Current Health, although the financial details remain undisclosed. This divestiture aligns with their ongoing strategy to refine and realign their business operations.
The retailer’s third-party marketplace, expected to launch midyear, aims to offer customers a wider assortment without the need for Best Buy to carry the inventory directly. This strategy positions them to better compete with online giants like Amazon.
With this new venture, both Ikea and Best Buy are poised to redefine their market presence and enhance customer experiences across multiple facets of retail. They aim to blend technology, furniture, and home appliances to offer a holistic shopping experience.
