Best Buy and Ikea to Partner for 'Shop-in-Shop' Format

Best Buy announced late last week that it will test mini-showrooms in some of its stores featuring Ikea products to show off kitchen design elements from the home retailer beside home appliances from the electronics store. Beginning this fall, the program will debut in 10 Best Buy stores across Florida and Texas. Each store will feature a 1,000-square-foot Ikea “shop-in-shop” showcasing styled kitchens and laundry rooms.

Total Retail's Take: From Best Buy's perspective, bringing Ikea products into its stores serves as another reason for shoppers to visit the consumer electronics retailer's physical locations. Best Buy has been challenged by rising tariff pressures, a soft demand in appliances, and a sluggish housing market. As for Ikea, the retailer aligns its expertise in home furnishings with Best Buy's market-leading position in consumer electronics to create a one-stop shop for all things related to the home.

As for the "shop-in-shop" format, the goal is to create unique, engaging experiences that go beyond traditional retail, according to an article on the topic authored by Amy Farsht is senior director, partnership marketing at The Lacek Group. The curated shop-in-shop environment let customers explore new products and brands, participate in interactive experiences, and discover product features and benefits. That's what Best Buy and Ikea hope to accomplish with their pilot program.