NEW YORK, NY -- (Marketwired) -- 04/25/13 -- According to electronics wholesaler Jason Floarea, the future of brick and mortar retail is very much up in the air -- but a recent development from Best Buy may have breathed new life into traditional retail models, at least temporarily. Floarea points to a recent Newser article, which notes that Best Buy has a struck a deal with Samsung to feature the manufacturer's products via special in-store kiosks. The announcement of this deal helped the long-struggling Best Buy to experience a major surge in stock prices; in fact, some industry experts believe the Best Buy/Samsung deal may have solidified the standing of brick and mortar retail. Floarea has commented on these issues in a new statement to the press.
According to Newser, the Best Buy/Samsung partnership helped the former company's stocks to rise by more than 16 percent -- an astonishing leap for a company that has struggled in recent years. The article goes on to note that many of Best Buy's struggles have stemmed from the effects of "showrooming" -- that is, of customers looking at products in brick and mortar stores and then buying them for lower prices online.
While the rise of showrooming has led to many predictions of brick and mortar's demise, Best Buy has fought back valiantly. The company has introduced a policy to match all online prices for in-store customers, and new employee training endeavors have sought to promote more in-store purchases. The Samsung deal is seen as another step in the right direction -- proof that Best Buy is still revered even by many high-profile electronics vendors.
Floarea has mixed feelings about the Samsung plan -- and about the future of brick and mortar retail in general. "I predict that online juggernauts like Amazon & eBay will soon rise to the retail brick and mortar models with a price power that will allow online shoppers to feel confident in purchasing products online -- and in taking advantage of discounted online rates," Floarea remarks.
Indeed, while Floarea predicts that online retail will still edge out brick and mortar stores in the end, the Best Buy/Samsung deal is moving forward and garnering the company many positive headlines. The deal will result in 1,400 Samsung-dedicated kiosks, in Best Buy and Best Buy Mobile stores throughout the country.
The move is also seen as a win for Samsung. The company's aim is "to carve out a dedicated retail space" without having to invest in overhead or to go to the trouble of opening its own stores, Newser reports.
A veteran of the consumer electronics industry, Jason Floarea is currently the head of Electronics Trading, a wholesale company that provides discounted rates on new and used electronics; the company has locations across the country, including in Miami, Chicago, and Atlanta.
Jason Floarea is a business veteran who currently leads Electronics Trading; a consumer electronics wholesale company, Electronics Trading provides cost-effective deals in used, new, and refurbished electronics. The business has locations in Miami, Seattle, Chicago, Atlanta, and beyond.
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