Best Buy Canada has announced plans to expand operations to include smaller stores located inside malls. These new locations will focus on mobile phones and wireless gadgets such as iPods and GPS navigation systems. The decision comes after market research concluded that there is a growing demand for mall stores selling mobile services.
Best Buy plans to open up to 200 of these new mall stores to compete against the carriers themselves (Rogers, Bell and Telus) and other retailers (like The Source) who already have a mall presence. Best Buy hopes to differentiate its service by being able to offer phones and plans from all carriers rather than just one.
At stake are mall shoppers, predominantly young people and women. Mall shoppers are also more likely to make impulse purchases.