The company has released a report recently with regards to its stores in Canada. It explained that it is closing down its Canadian branches for the sake of its brand goodwill in the country. Now, the company’s Canadian Future Shop is a chapter of history, with the buyer hardware retailer uniting it under standard of Best Buy, a move that unexpectedly disposes of about 1,500 full-time and low maintenance positions all over the country.
Since 2001, the company’s Canadian Future Shop kept on running its 131 stores in unique configuration throughout these years. Presently, 66 of these stores are to be closed down forever, while whatever is left of these outlets will be revived with a designated program. This procedure to single out the two corporations will cost the company around $260 million in rebuilding consumptions.
According to Matt Furman, a representative for Best Buy (NYSEBBY),the company has been proceeding with its operations for about 10 years in the country. The problem is that the business as whole is not growing nor developing in the country. According to him, they are losing the brand equity in the country which is unacceptable.
The experts and analysts also cheered the new move, saying it bodes well for the organization to join the two brands that offer the same sort of items and accessories. In a few places, a portion of the two brands’ outlets were in the same region and at times, so close, that they shared the same parking spots. According to them, this move will benefit the company in the long run.
However, the company will be left with about 192 areas in total with 56 Mobile; and 136 of vast configuration outlets and franchises that in the North of the country. While market spectators complimented the organization’s new strategy, the same couldn’t be said in regards to workers being laid off. Moreover, they did not even get any notification ahead of time of the store terminations until that day it was declared openly.
On the other hand, the new move also depicts the most recent episode of turmoil for US retail organizations working in Canada as a whole. Only two months prior to this incident, the retailer Target Corporation (NYSE:TGT) reported its finished shutdown in Canada, which included the closing of all of its 133 outlets, and employment termination of 17,600 workers. The shocking way out from Canada depicted that the corporations messed up by poor store areas, improper estimations, and relentless client dissentions with respect to stock. The company’s turn was soon trailed by Sony Corp’s. (ADR) (NYSE:SNE), who downsized its operations in the nation too, making it among the string of retail networks that were unable to make their mark in Canada.