Samsung Considers Financing a Stake in Retail Giant Best Buy

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News Posted: Sat, Oct 5 2013 11:24 AM
The Internet has made it tough for some brick-and-mortar businesses to stay afloat, and that's especially true in the field of electronics. There's a trail of electronics retailers that fell by the wayside and either closed shop entirely or were bought out, such as CompUSA, Good Guys, and Circuit City. Best Buy has managed to defy the odds up to this point, but it's been a series of challenges. Will Best Buy be around in another 10 years?

That depends on how it handles itself between now and then. One interesting development is that Samsung is said to be in talks with Best Buy about...something. The only thing Samsung's vice chairman Lee Jae-yong would fess up to is that he "recently met with senior executives at Best Buy and discussed pending business issues." What kind of "business issues" isn't known, though there have been rumors that Samsung is looking to purchase a stake in Best Buy.

Samsung at Best Buy

These two firms already have a working relationship with each other. If you've been to a Best Buy recently, you may have noticed new Samsung Experience Shops, a dedicated space in the store designed to show off Samsung's many different gadgets.

It would be an interesting move, especially if Samsung bought a significant stake in the electronics retailers. In addition to housing Experience Shops, Best Buy stores also dedicate store space to Apple products, Samsung's chief competitor in mobile.

Update


Samsung Electronics America reached out to HotHardware to provide the following statement:

"Reports that Samsung is considering to acquire a stake in Best Buy are not true. There have been no talks whatsoever regarding stock acquisition of either company."
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Maybe if they didnt charge twice as much as online hsops they wouldnt have a sales problem. Or if they offered price matches with online retailers.

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Maybe if the service dept wasn't a huge rip-off,.................

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

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SmogHog replied on Sat, Oct 5 2013 9:13 PM

Samsung should do the smart thing and stay away from this venture.

Best Buy and best buy are not synonymous

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I think there will always be a market for people who want to actually touch and fiddle with something that's a fairly major purchase. We're tactile critters, and want to touch.

The idea of having Apple, Samsung and a few others having someplace local (not everyone lives withing 10 minutes, or even an hour, of an Apple store) has some merit. But DanJ is right, I don't know how you work around the problem of brick-and-mortar overhead vs. shipping from a warehouse.

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BretHall replied on Sat, Oct 5 2013 10:58 PM

@ DanJChiccino: They do price match online retailers who are legit like Amazon (must be sold and shipped by Amazon), Newegg; any of the well know online competitors. When was the last time you stepped into a Best Buy?

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