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The Los Angeles Times reports that a big box store era is taking yet another hit, as weak sales and online competition have forced Best Buy to downsize its stores.

According to the story, the 1,300-store electronics retailer “is launching plans to wall off parts of its cavernous stores and sublease the space to smaller retailers, such as grocers, beauty supply stores, home furnishing outlets and others.

“Best Buy's new stores will aim to be about 36,000 square feet — down from the current average of 45,000 square feet.”

“It's an opportunity to capture cost savings and get ourselves 'right size,'" said CEO Brian Dunn.

The story notes that the move follows Best Buy’s previously announced plans “to open 150 smaller-format Best Buy Mobile stores focused solely on smartphones and tablets, nearly doubling the total to 325. The mobile stores, which average less than 3,000 square feet, have been very successful.”
KC's View:
Call it life in the age of Amazon.com.

The big lesson is that you can’t keep doing the same thing in a changing world - that you have to adjust your strategy and tactics and create a shopping experience that is financially viable and relevant to evolving consumer needs. Otherwise, you go the way of Borders. Or Blockbuster.

It’s why Walmart and other retailers are focusing on small-store initiatives.