Best Buy Shifts Focus To Mobile Stores (BBY, FONE, IGN)

In a shift away from its traditional big-box retail format, electronic retailer Best Buy (NYSE: BBY) said that it plans to open hundreds of wireless device stores, as well as shrink square footage at big-box stores by 10% over the next three to five years. The company expects to have 600 to 800 Best Buy Mobile freestanding stores in the United States within five years, with some 200 expected to be operating by July. These smaller stores (which focus on cell phones) have proven to be more profitable than traditional Best Buy stores due to the popularity and adoption of smartphones and similar devices. These devices have proven to be a major winner as the market segment seems to be one area that consumers will spend money on.

This move by Best Buy highlights the smartphone sectors long-term growth. Investors wanting to play the trend can add Best Buy and its first adopter status in mobile retailing or through the First Trust NASDAQ CEA Smartphone Index (NASDAQ: FONE) and iShares S&P North America Tech-Multimedia Network (NYSE: IGN). The exchange traded funds provide access to all the major players in the smartphone and mobile computing sector.