Dive Brief:
- In a first for Ikea’s U.S. business, the home goods company will pilot kitchen and storage planning services inside select Best Buy locations, according to a Thursday press release.
- The in-store collaboration will launch at 10 Best Buy stores throughout Florida and Texas later this year. Two of those locations will also serve as free pickup points for most Ikea orders.
- The shop-in-shops will feature 1,000-square-foot Ikea footprints showcasing kitchen and laundry room settings, per the release.
Dive Insight:
Ikea’s new partnership marks the first time its products and services will be available at another retailer in the U.S.
“With this partnership, we get to combine technology and design and show shoppers what’s truly possible in their home like never before,” Best Buy Chief Merchandising Officer Patrick McGinnis said in a statement.
The shops will provide customers with support from Ikea co-workers to plan and order home furnishings, while Best Buy’s blue shirt employees will provide advice on electronics.
“By bringing together our home furnishing expertise, products, and services with Best Buy’s leadership in appliances and technology, we’re creating a one-stop destination where customers can design their dream kitchen, storage solutions or laundry space with ease,” Ikea U.S. Chief Operations Officer Rob Olson added.
The news comes after Best Buy in May reported its first quarter revenue declined 0.9% year over year to $8.8 billion. The electronics retailer lowered its full-year guidance due to the evolving trade policy landscape, now expecting a revenue range from $41.1 billion to $41.9 billion.
The new approach for Ikea also comes as the home decor and furniture brand expands its U.S. store count. Ikea in February revealed plans to open eight new locations across the country this year. The planning and pickup formatted stores will be located in Pennsylvania, Maryland, Oregon, Arizona and California.
Ikea U.S. also updated its loyalty rewards program in May, allowing shoppers to earn points on purchases and various engagements that can be exchanged for rewards such as free food and purchase discounts.
