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Best Buy Canada To Close 15 Stores, Laying Off 800 Employees

post #1 of 9
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Like most brick and mortar electronic stores, Best Buy Canada is having trouble turning a profit. The company is going through a restructuring process scheduled to be complete by 2015. The plan is to turn many of the large retails stores into smaller outlets under Best Buy's Future Shop and Best Buy Mobile banners.

The next part of the restructuring process involves a move from a focus on brick and mortar sales to online and mobile sales. By moving to smaller retails stores, the company hopes to give their customers a more intimate and customer focused demonstrations of products the customer is looking for.

I can't say I'm surprised and I hope that this restructuring works. In the end, consumers still need at least one B&M chain out there so consumers have a place to see products in person. Words on the internet can only go so far and in the end there's nothing like demo'ing a product in person.



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post #2 of 9
According to several reports I read, the major contributing reason for their troubles is people going there and taking a look at the stuff and then ordering it from the internet for a little less. I don't know how they can alleviate that problem. It does cost them a little more than the warehouses with just an internet presence.
post #3 of 9
Quote:
Originally Posted by Vishwa Somayaji View Post

According to several reports I read, the major contributing reason for their troubles is people going there and taking a look at the stuff and then ordering it from the internet for a little less. I don't know how they can alleviate that problem. It does cost them a little more than the warehouses with just an internet presence.

Another problem is they also own Futureshop. The local Best Buy that is closing is a 1 minute drive from me the local Futureshop is a 3 minute drive from me.
post #4 of 9
This ths the news wire.
BURNABY, B.C. - Best Buy Canada says it has closed eight Future Shop and seven Best Buy big box stores across the county.

The company says as part of its "transformational plan" it will open Future Shop small concept web stores and Best Buy Mobile locations across Canada in the next year and a half.

It says the closures are part of its efforts to "reduce unnecessary costs, eliminate redundant operating systems and to optimize its real estate strategy to reflect... a changing retail landscape."

Best Buy has been facing tough competition from discounters and online retailers, a victim of what's known as "showrooming" — when people browse in stores and then buy the products more cheaply online from competitors such as Amazon.

Best Buy Canada says it continues to operate more than 120 Best Buy and Best Buy Mobile locations along with over 140 Future Shop stores across the country.

In Quebec, the windows at the Sherbrooke outlet were covered in paper and a sign there announces the closure of that location.

Employees arrived for their shift Thursday morning and were met by security guards and closed doors. They did not receive advance notice of a closure.
post #5 of 9
In St. John's, NL, a Best Buy and Futureshop are practically across the street from each other. That was pretty stupid.
post #6 of 9
I worked at Future Shop for some time and I actually prefered FS to BB. FS employees were trained on both products and technologies to have a better understanding of what they are selling.

Also I remember when BB was coming to Canada, they opened up BB either across the street from a FS or down the street.
post #7 of 9
Best Buy has to match online pricing - at the minimum they have to guarantee they will match the price of an Amazon Prime item on-the-spot. That's a real sticking point, sometimes I'm in the store and I really want to just buy an item I know costs less online and they won't budge. People are rational actors - nobody owes Best Buy anything... if their model is not competitive they will not survive.
post #8 of 9
When it's just Amazon left... you think the prices on goods will remain competitive? Not on your Nelly.

What about custom theater installers that typically sell higher quality products? What about those manufacturers (Triad, Paradigm, Totem, Dynaudio, Anthem, Parasound, Lexicon, JBL Pro, Procella, etc. etc. etc.)? What will happen to them? Will they go internet direct and how easily will you be able to demo these products? Who will install them? Home theater is going to go through a Dark Age just as technology is supposedly improving.
post #9 of 9
Now US is closing 200-250 stores.

I hope they keep mine...I have a Magnolia HT in mine I like to browse. And that's where I usually buy all my electronics/TV's.

Please don't make me shop at Walmart for a TV.

http://finance.yahoo.com/news/eight-retailers-that-will-close-the-most-stores-173320796.html
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