What: a new proof of concept implemented in 4 stores designed to address omnichannel.

Why it is important: they rethink their stores: reduce the shoppable area, edit sku assortment, allow space for pickup and ship from stores. Is that an idea for department stores with regional networks?

Best Buy has open 4 new store formats in Minneapolis to be stores and fulfillment hubs: SKU assortment is limited to bestsellers, the shoppable area is reduced by half, pickup and ship from store spaces are increased. It is supposed to be rolled over 90 stores with a network ship from store capability of 70% in Q4 2020.

This move is unusual during the holiday season but reflects both the need for agility and the understanding that the key to omnichannel is to rethink the role of the store and its contribution to value.

Best Buy tests limited SKUs on store floor to make space for fulfillment