April 5, 2013

Samsung kiosk plan pumps up Best Buy stock

Shares rise 16 percent as the change is viewed as a vote of confidence in brick-and-mortar stores.

The Associated Press

NEW YORK —  Shares of Best Buy rose 16 percent Thursday after it announced plans to create store-within-store kiosks for Samsung products – a vote of confidence from a major consumer electronics retailer that the brick-and-mortar format is still an important way to sell products.

The Minneapolis-based company has battled the "showrooming" effect as more and more people browse in stores and then buy items cheaper online. This has led to fears that the big-box store format is growing obsolete.

But Best Buy has aggressively fought back under new CEO and turnaround expert Hubert Joly, introducing an online price-matching policy, giving employees extra training and cutting costs and revamping stores.

The latest deal is a sign that consumer electronics retailers are sticking with the chain. The company will offer Samsung-dedicated kiosks at 1,400 Best Buy and Best Buy Mobile stores. Shops will offer the full range of Samsung's mobile products, including smartphones, tablets, laptops, cameras and accessories.

Best Buy shares rose $3.48, or 16.1 percent, to close at $25.13 Thursday, after briefly reaching a 52-week high of $25.30.

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors




Further Discussion

Here at PressHerald.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)