As Jason Bonfig prepares to take over as Best Buy’s CEO this fall, he is prioritizing a shift toward opening smaller-format stores to expand the retailer’s market reach. Bonfig explained that these compact locations, ranging from 12,000 to 15,000 square feet, allow Best Buy to enter communities that cannot support the company’s traditional, larger stores, which typically span 20,000 to 40,000 square feet. This strategy aims to attract new customers both in-store and digitally by placing stores closer to underserved areas, thus enhancing the overall customer experience.

Best Buy recently launched two such stores in Jonesboro, Arkansas, and Cape Cod, Massachusetts. The Jonesboro location marks a comeback after a tornado destroyed the previous store, demonstrating Best Buy’s commitment to re-enter impactful but smaller markets. The Cape Cod store, slightly larger than typical small-format stores at 28,000 square feet, was chosen to suit its specific regional demand. Bonfig underscored that these smaller stores complement, rather than replace, the existing medium and large stores, enabling the company to capture a broader customer base.

The new CEO also highlighted the importance of artificial intelligence (AI) in Best Buy’s future. The company is actively incorporating AI tools for both customer service and internal operations, partnering with major players like OpenAI and Google to enhance the shopping experience. Bonfig sees AI as a complement to the company’s human-centered service model, aiming to position Best Buy at the forefront of the emerging "agentic commerce" landscape driven by AI platforms.

Despite recent challenges, including a 20% stock decline since late 2021 and pressures from tariffs and rising chip prices, Bonfig remains optimistic about Best Buy’s prospects. He attributes recent sales stagnation to a temporary reset after Covid-19-driven demand surges but believes the company still holds strong momentum. Building on the strategy laid out by outgoing CEO Corie Barry, Bonfig’s vision focuses on refreshing product offerings, improving customer engagement, and delivering sustainable growth by adapting to evolving consumer needs and technological advancements.