The news: Best Buy is testing a store-within-a-store concept with Ikea, aimed at helping customers more seamlessly integrate its appliances into Ikea-designed kitchens and laundry rooms. This marks the first time the Swedish retailer has offered services and products within another US retailer.

• The 1,000-square-foot Ikea in Best Buy experience will launch this fall in 10 stores across Florida and Texas. It will be staffed by Ikea employees who can help customers plan and order home furnishings, while Best Buy associates will assist with electronics and appliances.
• The companies are also testing the use of Best Buy locations as pickup points for Ikea orders.

The strategy: This partnership unites two complementary brands in a move that could boost traffic and sales for both.

• Best Buy brings electronics expertise, while Ikea contributes design credibility and value-priced furnishings. Together, they offer a more holistic solution for customers planning home upgrades.
• Both retailers are looking for growth: Best Buy has posted three consecutive years of sales declines, and Ikea’s goods sales dipped 8.7% YoY in its most recent fiscal year.
• The collaboration gives Best Buy, which offers kitchen design services in some stores, a new angle on home projects. It also gives Ikea, which is broadening its reach via small-format stores and pickup-only locations, another customer touchpoint.

Our take: Pairing two well-known, purpose-driven brands around a shared customer use case—home design and functionality—is a smart play. The in-person branded experience should provide value to shoppers and offer a win-win path to renewed relevance and growth for both companies.