New CEO Jason Bonfig targets 12,000-15,000 square-foot stores to expand into smaller towns previously bypassed by the retailer.
Best Buy’s incoming CEO Jason Bonfig will open smaller-format stores, sized 12,000 to 15,000 square feet, to enter markets too small for its traditional 40,000-square-foot locations. The strategy aims to reach customers in underserved towns and neighborhoods where full-size stores are unviable due to high costs and lower population density.
The company has historically relied on large showrooms requiring significant foot traffic and spending to justify rent, staff, and inventory expenses. Bonfig’s plan follows a leadership transition as the stock recovers from a prolonged sales slump, with two pilot stores already opened in Jonesboro, Arkansas, and Cape Cod, Massachusetts.
Best Buy shares have climbed amid the leadership change, though the stock remains under pressure from broader retail challenges. The smaller-store model is designed to complement online sales by providing physical presence in areas previously served only digitally.