Sony and Comcast will open a joint retail store tomorrow in Philadelphia. The store is a test of the concept, which could be extended nationwide if it proves successful.

The logic behind the move is sound enough: the two firms produce and provide products and services which complement each other rather than act as competition. Co-branding a store saves on costs and brings the potential that customers shopping for one firm’s products will be interested in those of the other. For example, if somebody buys a PlayStation 3, they are a sensible target for a salesman pushing broadband services.

The Philadelphia launch is a fairly low-risk strategy as the store is located in Comcast Center, the cable firm’s national headquarters. For now it’s a one-off experiment but the two firms haven’t ruled out extending the idea to other stores. That could involve rebranding the 40 existing Sony stores or moving into new retail outlets, which are likely to become cheaper to buy or rent as the recession bites.

The first store is likely to be as much a showcase as a retail destination. The firms are marking the opening day with demonstrations of Comcast’s 100MBps broadband service (on a giant Sony screen of course); the firm plans to make this service available to subscribers later this year. The store will also feature a home telephone cordless handset which includes cellphone style features such as e-mail and Yellow Pages listings.

The opening follows announcements that Microsoft will be launching its own series of retail stores, likely inspired by the success of Apple. The big difference is that, besides its games consoles and media players, Microsoft doesn’t produce its own hardware. That’s left uncertainty about whether the Microsoft stores will sell computers and, if so, how the firm will decide which brands to stock.

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Entry was posted on Monday, March 16th, 2009 at 1:26 pm under Retail, Technology.

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