Best Buy to beef-up appliance section to boost sales
Shoppers typically associate Best Buy with TVs and computers, but the retailer plans to dedicate more floor space to appliances in the coming months as the housing market continues to improve.
The Star Tribune reports Best Buy Co. Inc. will open 18 to 25 of its high-end Pacific Kitchen store-in-a-store concepts this year.
The Richfield-based consumer electronics giant bought California-based Pacific Sales Kitchen and Bath Centers Inc. for $410 million back in 2006, according to a news release.
“The first priority is to increase revenue and gross profit per square foot through enhanced store space optimization and merchandising,” Joly recently told analysts, the newspaper reports. “This year we will reduce space allocated to the negative growth and low-margin categories [CDs and DVDs] and replace it with higher-gross categories like mobile, appliances and accessories. To support these expanded categories, we will deepen the product assortment, increase Blue Shirt [staff] training and re-prioritize marketing investments.”
