Jason Bonfig takes over as Best Buy CEO with a counterintuitive strategy: shrink first, then grow. The incoming chief told CNBC he plans to reduce the retailer's physical footprint before pursuing expansion, reversing years of store count debates that have plagued the consumer electronics chain.

Best Buy operates roughly 1,000 stores across North America. Bonfig's approach suggests closing underperforming locations to improve profitability and operational efficiency. By trimming unprofitable stores, the company can redirect resources toward high-performing markets and strengthen its omnichannel capabilities.

The strategy addresses Best Buy's persistent challenge. The retailer has struggled to compete with Amazon's convenience and pricing while navigating the shift to online shopping. Closing redundant stores reduces overhead costs and labor expenses, directly impacting margins that investors watch closely. Smaller, more efficient operations generate better returns per location.

Bonfig also emphasized enhancing the customer experience, a nod to Best Buy's need to differentiate beyond product selection. This likely includes improving in-store service, investing in employee training, and leveraging its Geek Squad services division for recurring revenue. Best Buy's protection plans and technical support services generate higher margins than product sales alone.

The incoming CEO inherits a company trading on execution. Best Buy stock has traded in a narrow range, underperforming the broader market as investors question the viability of traditional consumer electronics retail. Same-store sales trends and inventory management remain critical metrics.

Bonfig's "smaller to grow larger" thesis reflects pragmatism rather than retreat. By optimizing the store base and deepening customer relationships in core markets, Best Buy positions itself as a viable alternative to pure-play online retailers. The company must prove it can defend share against Amazon while supporting consumers who value hands-on product interaction.

This restructuring could unlock shareholder value