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

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

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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.

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Stocks Mentioned

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

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