Macy’s Inc. is getting back into electronics through an agreement with Best Buy to test licensed consumer electronics departments in 10 Macy’s stores in early November.
The licensed Best Buy shops will occupy about 300 square feet in each of the Macy’s.
The space will be staffed by Best Buy employees and feature Samsung smartphones, tablets and smartwatches, as well as audio devices including Bluetooth speakers and headphones and accessories including cases, chargers and other peripherals from Samsung and other brands.
“We are delighted that consumer electronics will be returning to selected Macy’s stores through this test, which will allow us to learn how we can best serve our customers’ needs in this very sophisticated category. Our customers have expressed interest in electronics for self-purchase and gift-giving, and this collaboration with Best Buy reinforces Macy’s as a shopping destination throughout the year for the products that are most in demand,” said Macy’s president Jeff Gennette. “We will test and learn, along with Best Buy, through the holidays and into 2016 before deciding on next steps.”
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Decades ago, Macy’s did sell electronics, but that was before the advent of mobile and digital devices, like iPhones and iPads, as well as high-definition televisions. Macy’s dropped electronics because it wasn’t profitable enough and there was a noticeable lack of service and expertise on the selling floors.
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The decision to test Best Buy shops is not surprising considering Macy’s chairman and chief executive officer Terry J. Lundgren has told WWD that the company is open to broadening the scope of its offerings, including categories where Macy’s does not have extensive expertise, to generate more traffic on its selling floors. Macy’s is working hard to attract more Millennials.
“It’s OK to admit that we aren’t the best in all categories, engage someone who is and bring them under our umbrella,” Lundgren said last year at the Global Retailing Conference at the Loews Ventana Canyon held in conjunction with the Terry J. Lundgren Center for Retailing at the University of Arizona.
In addition, licensed arrangements are nothing new to Macy’s. The retailer already operates licensed Sunglass Hut, Finish Line and Lids shops in its stores, and once experimented with J&R Music World with a shop inside the Herald Square flagship.