Meta (META.US) partners with Best Buy Co., Inc. (BBY.US) to "invade" the offline channels of AI glasses! Goldman Sachs Group, Inc.: Limited impact on traditional eyewear retailers

Best Buy Co., Inc. (BBY.US) and Meta Platforms (META.US) recently announced a new partnership, establishing Meta Lab experience areas in 50 Best Buy Co., Inc. stores, allowing consumers to try on and experience Meta's AI glasses and VR headsets, including Ray-Ban and Oakley VR glasses. The driving factor behind this collaboration is that 50% of Best Buy Co., Inc. customers indicated that they would like to personally experience Meta glasses before making a purchase. Therefore, the Meta Lab experience areas will first launch in June in 5 Best Buy Co., Inc. stores, and will gradually expand to more stores throughout the summer and holiday shopping season. Although this collaboration may have potential implications for other eyewear retailers, a research team led by Goldman Sachs Group, Inc. analyst Kate McShane found that while the three retailers they track - National Vision (EYE.US), Warby Parker (WRBY.US), and EssilorLuxottica (ESLOY.US) - all sell AI glasses, the services they offer differ enough from Meta Lab that they will not face substantial competition from the partnership between Best Buy Co., Inc. and Meta. For Warby Parker, which has a "buy" rating from Goldman Sachs Group, Inc., the analysts believe that the partnership between Meta and Best Buy Co., Inc. will further enhance market attention to the company's ability to attract customers, especially before its planned launch of AI glasses (related to projects with Google and Samsung Electronics) later this year. The analyst team wrote, "We do not view this collaboration as a risk, as Warby Parker has integrated optometry and lens customization capabilities, as well as a wide network of store locations." Goldman Sachs Group, Inc. also sees promise in EssilorLuxottica, believing that this collaboration will "expand the sales channels for smart glasses and provide more resources to support consumer education and the widespread application of smart glasses." As for National Vision, which has a "neutral" rating from Goldman Sachs Group, even though Ray-Ban Meta glasses are its fastest-selling item, the chain retailer can offer a "seamless shopping experience" that Best Buy Co., Inc. cannot replicate. Additionally, National Vision already provides similar smart-glasses demo experiences in its stores, and is expanding its employee training programs for Meta glasses.