The local BB in my area is in the process of renovating the back section of the store for Magnolia. I noticed that, at least in SoCal, Tweeter is slowly shutting itself down (including the one that I used to frequented) and BB is aggressively opening new Magnolias.
What is interesting is I think, in the long run, the strategy will work for them. Think about it, BB has been opening stores like Starbucks has, and tagging along Magnolia in the back has to cost less than otherwise. As long as BB is successful, Magnolia will become an anchor Higher-End store for them. Before long, Magnolia will have the clouds to negotiate a lot more favorable term with their vendors/suppliers/manufacturers.
I, for one, excited to know that I can walk around to binge on new gears' smell anytime I feel like it...:p