Best Buy and Carphone Warehouse Change Direction

Best Buy, the US electronics retailer, and Carphone Warehouse have had a joint venture to operate big-box UK electronics stores since 2008. This week the two confirmed the end of that JV, acknowledging that US retail formats like the big box store don't necessarily fit UK and European markets.

The two companies are still working together, however. Best Buy is buying Carphone Warehouse's ownership stake in Best Buy Mobile (a growing business) and the two are starting a new operation, Global Connect, to retail mobiles and related services in Best Buy affiliated stores within Asia and other regions.

Best Buy is continuing to explore expansion of its non-store retailing, including Best Buy Express kiosks located in airport terminals and other places.

How much will online shopping affect in-store retailing? Will retail kiosks gain in popularity?

Vodafone Redials Distribution

Vodafone is rethinking its exclusive UK distribution deal with Phones4U and trying to get its offerings back into Carphone Warehouse (updating Chapter 8 of my book, which examines channels and logistics).

Why? Because sales are slow and Vodafone would like wider distribution. Consolidation among UK mobile carriers is another possible solution to the intense competition, according to Vodafone's CEO.

For now, mobile bargains are everywhere as prepaid services compete against subscription services in a slow-growing market. Although Vodafone is cutting costs aggressively, its latest financial results were below targets. Will wider distribution be the answer?