Please ensure Javascript is enabled for purposes of website accessibility

Are Best Buy and Samsung Making J.C. Penney's Mistake?

By Austin Smith and Eric Bleeker - Apr 14, 2013 at 11:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If it walks like a duck and quacks like a duck ...

J.C. Penney's (JCPN.Q) big turnaround pivoted on the idea of a store-within-a-store shopping experience. The radical shift had Wall Street enamored at first, but the novel concept is far from new. The design has been tried with mixed success across all varieties of bricks-and-mortar retailers. 

Best Buy (BBY 0.32%) is the most recent dying retailer to attempt such a move after announcing its partnership with Samsung to create retail shops within larger Best Buy stores. There are echoes here not just of J.C. Penney's attempted strategy, but also of Apple's own experience inside Target stores today and Circuit City stores of yesteryear. 

Whether Best Buy and Samsung can pull off an Apple retail success will depend on their execution, but what seems on the surface to be a mimicking of J.C. Penney's ill-fated strategy is actually rather different. Check out the following video for more details.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$143.11 (4.01%) $5.52
J. C. Penney Company, Inc. Stock Quote
J. C. Penney Company, Inc.
Best Buy Co., Inc. Stock Quote
Best Buy Co., Inc.
$72.59 (0.32%) $0.23

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.