First it was RadioSchack and now Target has ended another electronics initiative with Best Buy.
Target and Best Buy confirmed earlier this week that they agreed to end a partnership begun last August that involved Target offering Best Buy’s Geek Squad services at 29 stores in Minneapolis and Denver. Earlier this year, Target ended a more extensive relationship with RadioShack that involved
Commenting on the Geek Squad situation, Best Buy spokesman Matt Furman said, "as part of our ongoing transformation efforts we have been very clear that we are focused on the company’s core business, including the Geek Squad opportunity with Best Buy’s own customers. We have valued our collaboration with an outstanding Target team, whom we admire and respect as retail leaders and hometown business colleagues."
The decision comes as Best Buy is under new leadership since last September when Hubert Joly was named CEO and Target wrestles with how to drive growth with its electronics department.
Target offers a solid assortment of electronics and regularly promotes the category, but the department is less of a destination for the retailer’s core customers. Even if its core customers have electronics needs the category is arguably the most susceptible to comparison shopping. Target sought to address that situation earlier this year as well by extending its price match policy to online competitors.