Best Buy to sublet store space to smaller retailers
Minneapolis -- Elaborating on previously announced plans to downsize its brick-and-mortar footprint, Best Buy CEO Brian Dunn said this week that the electronics retailer is launching plans to wall off parts of its big-box stores and sublease the space to smaller retailers, such as grocers, beauty supply stores, home furnishing outlets and others.
According to a Thursday report in the Los Angeles Times, Dunn said at the company’s annual shareholder’s meeting that the chain can “reduce our overall square footage while actually increasing our presence. It's an opportunity to capture cost savings and get ourselves 'right size,'" he said.
According to the report, Best Buy hopes to lease out between 4,000 sq. ft. and 15,000 sq. ft. at its 46 stores in Southern California. Prospective tenants might include Trader Joe’s or Sephora, according to local brokers.
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