Best Buy's new retail store is just a fraction of the square footage of its other locations, but it might provide a better shopping experience.
Best Buy's new digital-first retail store offers a smaller selection of products and is just 5,000 square feet — but it might just end up providing a better shopping experience than its full-size retail stores. Both online and in-store retailers have been looking to use technology to cut costs for years now, to varying levels of success. Best Buy first tried mobile, compact stores — but those were all shut down by 2018. More recently, the Amazon Go grocery store uses extensive tracking technology to provide a cashier-less shopping experience. Instead of checking out at a register, users can just walk out of the store to pay for their goods. Now, Best Buy is trying to make shopping at their stores more concise with a compact, digital-centric retail store.
The test-run of smaller retail stores isn't the only thing the company is doing to benefit buyers. Best Buy routinely bundles free subscriptions to online services with eligible purchases in an effort to give buyers more for their money. Most recently, Best Buy is offering six months of Apple Music for free, with eligible purchases priced at as little as $7.99. That's a limited time offer, but the company usually offers three months of select Apple subscriptions with eligible purchase year-round. Best Buy needs to set itself apart from competitors like Amazon, Target, and Walmart — and uses bundles to that end. But now, a new store format offers a unique experience from other retailers.
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Best Buy's pilot store is in Monroe, North Carolina — which is within the growing Charlotte metropolitan area. The store is 5,000 square feet, significantly smaller than the average Best Buy location, and is centered around online shopping. Though the online component is a huge part of the store's mission, online order pickup isn't the only way to shop at the store. There is an in-person shopping experience, but available items are limited compared to a full-size Best Buy store. No appliances will be carried at the compact store, but more common items like large TVs will be available. Anything that isn't in-stock at the location can still be ordered and picked up at the Monroe retail store.
The success of Best Buy's compact store is contingent upon the items that are kept in-stock on a routine basis. The company's logic is sound — people likely do not want to traverse a big box retail store to purchase a cable, dongle, or portable charger. A benefit of shopping at Best Buy is that there is a wide selection of niche technology available that would otherwise have to be shipped to a buyer through an online order. However, this has its drawbacks — it can take too long to find the simple things, like a USB-C cable or a wall adapter. If the Monroe location can provide these essentials quickly and easily, with self-checkout options available, it might just be a resounding success.
On the other hand, the Monroe location will fail if it struggles to keep common items in-stock. Though there is not enough floor space to display every item that is available at a full-size Best Buy store, the company should keep items in-stock in storage to ensure that if a customer knows exactly what they need, they can get it quickly and easily. This issue will also be solved with exterior order pickup lockers that do not require entering the store, and can even be accessed while the store is closed. Some Best Buy locations open late in the morning and close early in the evening, which makes online order pickup a struggle for people who work. A compact Best Buy store with the essentials and exterior pickup lockers might be the perfect way to adjust in the evolving retail market.
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Brady Snyder is a journalism student at St. John's University specializing in Apple, wearables, and audio. Based in New York City, he reviews consumer technology, software, and services. Brady is well-versed in iOS, iPadOS, watchOS, and macOS — but experiments with Android and Windows as needed. He believes that competition between technology companies facilitates progress, and cautions against sticking to one particular brand or device. Instead, Brady tests out any tech product or service he can get his hands on, and aids buyers in making an informed decision about what is best for their needs. He's currently flipping into the future with Samsung's Galaxy Z Flip 3 5G, but the Apple Watch's incredible fitness features might have him coming back to the iPhone in no time. Brady's always searching for the best and most productive workflow with his technology, regardless of the platform he is currently using.