Can Samsung Save Best Buy?

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Aug. 20 (Bloomberg) -- David Strasser, managing director at Janney Montgomery Scott, discusses Best Buy’s business strategy. He speaks on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

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We turn back now to our top story, one of the biggest names in retail struggling.

Best buy surprised with a bigs earning beat, its highest profit in two years but sales fell.

For more on best buy and other businesses struggling the digital age,, cory johnson is back with us now.

What a fascinating day.

Best buy struggling through change and a faltering business model facing amazon and lines and noble, struggling with change, fighting off amazon.com, both of them.

David, good to see you.

Let's talk about best buy.

A fascinating turnaround.

Have they figured things out?

A couple of things, number one, a have embraced the concept of online instead of fighting it , not fully embracing it.

I think they have realized they are going to spend much more efficiently and they have changed the way they incentivize their employees and the last thing they are remodeling their scores -- stores.

I talked earlier about something i picked up from one of your notes, getting rid of the cd business, which took over so much real estate.

That could have been that are used to selling something else.

Absolutely.

Cds and dvds were 12% of the square footage in the store.

That has been cut in half as they added the samsung store within the store.

They are expanding mobile as that continues to grow.

People are doing much more on mobile.

They need more accessories.

Talk to me about the store within the store.

We saw this with samsung and then there was announcement they are going to have so many stores by labor day which is coming up soon.

What are we expecting from that?

Are they too tied to one brand?

I think -- i would like and a, all of these big ventures, whether it is google, samsung, apple, microsoft, they are trying to get people into their ecosystem.

Best buy is the agnostic player who is going to be the show room for all of these ecosystems.

Whatever the hook is for these companies.

So the day samsung and dust by announce their partnership, the stock fell something like 15%. i got a lot of calls.

I think would happened is the market revalue his -- revalued best buy's real estate around this opportunity to be this agnostic arbiter of ecosystems.

What i imagine, you know more about retail than anyone, but i imagine a store that says samsung, samsung, samsung.

Is this a place where a customer will get an agnostic experience?

They had an apple store within a store about four years.

Samsung is a new partner.

They have always been strong partners another that is a store within a store.

Microsoft is doing it on the pc side, trying to get their name out there and be more prevalent.

Maybe you will see something more with google at some point as they try to increase -- consumers into their ecosystem.

Over time that is going to get bigger.

The one glaring one that does not show up his amazon.

In some ways that might make sense for amazon to come in as well.

Finally, 30 seconds, david, and if there is one advantage to real estate, either barnes & noble or best buy, is there one thing that is an and brett -- and advantage acca and brace the show room.

-- advantage?

Embrace the show room.

Rather than being nervous, embrace it.

If we get people to look at product, and we can't close, shame on us.

It goes back to these issues about incentive pay, retraining employees and stuff like that.

They need to close.

That is something, that is a new , sort of a new take on show rooming.

David strasser, always be closing.

Thank you very much.

Thank you.

Still ahead, more of "bloomberg west." ?

This text has been automatically generated. It may not be 100% accurate.

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