Ikea is teaming up with another retailer for the first time: Best Buy.

The Swedish home goods giant will feature kitchen and laundry products inside mini-showrooms at select Best Buy locations. The store-in-stores will feature Best Buy appliances.

The first 10 shops will launch in Florida and Texas and will be similar to the Ulta hubs in Targets and Sephora mini-stores in Kohl’s. Best Buy declined to comment on when a location might reach its home state.

The move reflects Best Buy’s broader push to expand beyond its core electronics business, including the upcoming launch of a third-party marketplace. For Ikea, it offers a chance to tap into new markets as it looks to grow its U.S. footprint.

“Our focus is on creating new experiences for our customers that help them discover what technology can do for them, and this partnership with Ikea is a great example of how we’re bringing this to life in our stores,” Patrick McGinnis, chief merchandising officer at Best Buy, said in a statement.

The new locations will be staffed by Ikea designers and will offer consultation services. The first locations will open in the fall.

Best Buy declined to comment on the financial side of the partnership. Compared with CVS Pharmacy at Target, where the retailer acts more as a landlord, Best Buy and Ikea are working “collectively to provide holistic furnishing and appliance experiences,” the company said.

Two stores also will serve as Ikea fulfillment centers, allowing customers of the home superstore to pick up their orders from a participating Best Buy location.

Ikea, which prides itself on cost-consciousness and simplicity, is actively expanding its presence in the U.S., including smaller format Plan & Order stores like the one in Rosedale Center.

“This new partnership is really allowing us to bring the Ikea experience closer to where people live,” said Rob Olson, chief operating officer at Ikea U.S.

The company plans to invest $2.2 billion in the U.S. market. In Texas, Ikea announced three new stores, all expected to open by the end of 2025 or early 2026. There are currently 10 stores in Texas and six in Florida.

Ikea’s large-format store like the one across from Mall of America in Bloomington — which most U.S. shoppers are familiar with — averages around 300,000 square feet.

The newer, smaller locations typically average between 40,000 and 60,000 square feet. The Ikea hubs at Best Buy will be 1,000 square feet.

Ikea operates 487 stores; 52 of them are in the U.S.

“Our vision for a perfect shop-in-shop experience is simple: We want customers to be able to envision their life at home,” Olson said.

Best Buy has posted a decline in comparable sales for all quarters dating back to fiscal year 2023, aside from a 0.5% increase in the fourth quarter. The Minnesota-based retailer will report its second quarter earnings Aug. 28.

The company also shed health tech startup Current Health in June. Best Buy declined to comment on details of the sale. It was reportedly purchased for $400 million four years ago.

The retailer’s third-party marketplace is expected to launch “midyear,” CEO Corie Barry said on a first quarter earnings call. The low-risk, high-reward endeavor allows Best Buy to more closely compete with Amazon and other online retailers.

“This will allow us to bring our customers access to much more expansive assortments and new categories without needing to own the inventory,” Barry told analysts in March.

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