The Canadian subsidiary of the US consumer electronics chain Best buy is now closing. Future Shop is also owned by the US consumer electronics chain and they have announced they will be closing Future Shop but will replace it with Best Buy outlets. 65 out of its 131 stores will be converted.
Reports tell us that the economic perspective has dimmed the hopes of the people who were employed by Future Shop. Because of this move, 1000 part time jobs and 500 full time jobs will go.
In 2001, Best Buy bought Canada’s largest electronic brand, Future Shop and now Best Buy will have 192 stores after the conversion. Many retailers think that a lot of jobs are being lost because of the conversion but then again, new job openings will be there once the conversion is complete.
In the next two years, Best will be investing a sum of $200m in its operations in Canada; the restricting cost is also around $200m. According to Best Buy, this is a rational choice.
Best Buy thinks that this move will reduce duplication and will validate Best Buy’s objectives in Canada. Future Shops have great location and Best Buy thinks that the proximity factor will help them establish a bigger business in Canada.
Many analysts think that this new development will lead Best Buy in becoming the number 1 provider of electronics in North America.