January 31, 2013 2:52pm
This is an interesting turn of events for big box retailers Best Buy and Future Shop. According reports a total of 7 Best Buy Canada and 8 Future Shop locations are closing their doors. This move is apparently part of a project called “Renew Blue Focus” where they’ll start a “long-term transformational strategy to optimize the company’s retail footprint.”
Basically they’re spending too money much on their physical retail stores for the amount of sales. Some customers have turned to online resources like eBay, Walmart or Amazon Canada to purchase tech items at a lower cost. Part of the plan is to open smaller locations with a greater focus, similar to the Best Buy Mobile stand-alone stores.
“Best Buy Canada today launched the first phase of a long-term transformational strategy to optimize the company’s retail footprint across the country. As part of this transformational plan, Best Buy will permanently close 8 Future Shop and 7 Best Buy Big Box stores today in select markets nationwide.
Over the next 36 months, Best Buy will move into the second phase of the “Renew Blue” strategy and plans to open state-of-the-art new Future Shop Small-Concept web stores and new Best Buy Mobile locations across Canada, where and when appropriate. This move will enable the company to better serve its customers in both more locations and smaller markets across the country. The move was based on an extensive review of Best Buy’s retail footprint in Canada in an effort to reduce unnecessary costs, eliminate redundant operating systems and to optimize its real estate strategy to reflect a more a changing retail landscape.”
The Globe and Mail has also reported the company will shed a whopping 800 employees – which is so incredibly unfortunate. Laid off employees will receive severance pay and be given hiring preference other retail locations.