A year ago Best Buy announced it would downsize current stores by leasing space in the store to other retailers.
The furniture store will occupy 8,000 and 10,000 square feet, respectively in the stores and will open the departments September 21. Best Buy stores average about 45,000 square feet. Through its leasing program, Best Buy hopes to shrink that to about 36,000 square feet.
No furniture company of this size has partnered with a mega store like Best Buy until now, said The Detroit News.
The hope is the venture will increase store traffic to both retailers. A retail analyst Ken Dalto told The Detroit News “It’s the future of retailing.”
Other stores are also following the sub-leasing trend including Sears and Paul’s TV. Sam’s Club is also looking to sublease space in its Detroit store.
Analysts say the heyday of the big box store has come and gone. Chains including Staples, Office Depot and Wal-Mart all expect to build smaller locations in the future.
Source: The Detroit News