Best Buy takes the fight to Amazon and Walmart

A lot of the items I used to buy at Best Buy either no longer require a trip to the store or can be purchased from Amazon with next-day shipping.

I used to, for example, visit the electronics giant to browse for video games. They had all the latest games on display, and even had some gaming stations where I could try a game or two.

Now, however, if I want an XBox game, I download it directly. There’s no reason to go into a store. The same is true for chargers, printer ink, cables, and all the other little odds and ends that used to help justify a trip to Best Buy.

The retailer, while it may have lost me as a regular visitor, has not simply accepted that sales will drop. It has made a number of changes designed to make its stores a relevant destination for shoppers.

Best Buy takes the long view

Best Buy CEO Jason Bonfig explained some of the adjustments Best Buy has made.

“Over the past several years, we have invested in areas that matter most to our customers, including elevating specialty expertise in our stores, partnering closely with our vendors to bring innovation to market and improving fulfillment speed and execution across our supply chain,” he said during the company’s second-quarter earnings call.

Adding experts fits the strategy GlobalData Managing Director Neil Saunders suggested the chain implement to compete with “generalist retailers like Target and Walmart, as well as e-commerce sites like Amazon,” he said in 2024 to CX Dive.

“Providing a strong customer experience is one of the ways of doing this, so this is a sensible area to focus on,” he wrote.

RTM Nexus CEO Dominick Miserandino echoed those comments in an exchange with TheStreet.

“Amazon can deliver a television to your doorstep, but it can’t stand in your living room and tell you which one actually makes sense for your space. Best Buy has knowledgeable employees, physical stores and installation services. Those are real advantages, but only if customers feel they’re getting something they can’t get by clicking a button,” he wrote.

“Being human is the best shot,” he added.

Best Buy has added in-store product experts.

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Best Buy adapts to serve more customers

Best Buy has also brought its stores closer to more customers by making one big change.

“Another way we are expanding our reach is through smaller format stores that allow us to enter attractive markets that cannot support our traditional Best Buy store format, thereby extending the Best Buy experience to new customers and communities. Although the strategy is still in its early stages, we are pleased with the customer response and encouraged by the performance we are seeing,” Bonfig said.

Former interim CEO of Ikea, Rob Olson, made similar comments about his chain’s smaller stores.

“We’re now focusing on smaller-format stores so that we can really come in closer to many Americans,” he told Modern Retail.

The move, he noted, is about putting product in front of more potential customers. “We’ve focused heavily on creating that accessibility and getting closer to the consumer.”

Ikea has also been working with Best Buy since 2025.

“Additionally, IKEA late last year launched a partnership with Best Buy to open Plan & Order Points within Best Buy stores. There, customers can work with IKEA employees to plan and design their spaces, order IKEA products and look at room displays,” Olson added.

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Bringing customers into stores doesn’t mean they will come back, and Bonfig explained why that’s a positive.

“What is particularly exciting is the way these stores accelerate omnichannel engagement. Customers often begin their relationship with Best Buy through a store visit, but quickly adopt our app, our digital channels, membership, programs and services. As a result, these locations act as both retail destinations and customer acquisition engines,” he said.

Best Buy also adds new partners

Bonfig, who takes over as CEO on Nov. 1, also shared how his company has modified its traditional stores.

“I want to be clear that we continue to see significant value in our large-format stores. Through a series of targeted enhancements, we are utilizing these assets more effectively than ever while improving the customer experience. As we’ve discussed previously, we’ve been reallocating space to higher value experiences like Meta Lab @ Best Buy,” he said.

Meta Lab @ Best Buy launched in 50 stores in June.

“Each Meta Lab @ Best Buy is a sleek, roughly 900-square-foot ‘store-in-store’ designed for hands-on discovery, where people can explore Meta’s expansive lineup of AI glasses and VR headsets through interactive demos, smart mirrors, personalized fittings and more — all with support from dedicated Meta Sales Specialists,” Meta shared in a press release.

The store-within-a-store allows customers to try Meta’s products.

  • Try on popular AI glasses including Ray-Ban Meta, Oakley Meta, and more.
  • Discover how to control Meta Ray-Ban Display glasses with subtle hand gestures using the Meta Neural Band without ever taking out a phone.
  • A dedicated style wall highlights an expansive assortment of AI glasses from Meta, letting customers get a hands-on fit and feel for every frame. Nearby displays use interactive UV light to show how lenses transition colors in different light settings.
  • Experience your favorite game or movie in theater mode, or the latest HIIT workout like you’ve never experienced it before. Check out the Quest 3 and Quest 3S VR headsets with a guided immersive demo. 

Bonfig sees more opportunities to leverage the store-within-a-store model.

“Based on what we are seeing, we believe there is significant potential to expand this model to additional vendor partners,” he added.

Related: Kroger makes an in-store change to improve your shopping experience