Best Buy Makes Future Shop a Thing of the Past
In an attempt to create a stronger customer experience, Best Buy Canada is taking charge—Future Shop locations will be closing, while others will be reopening under the Best Buy name. Best Buy Canada, the parent company, originally acquired Future Shop back in 2001 through a multi-million dollar deal.
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Specifically speaking, 66 Future Shop locations have closed, while another 65 stores will be closed for one week while switching over to become Best Buys. In total, Best Buy will have 192 locations in Canada—breaking down to 136 large-format stores and 56 Best Buy Mobile stores. Already underway, this change has so far resulted in about 1,500 Future Shop employees losing their jobs.
About the Change
Over the next 12-24 months, Best Buy will increase its capital spending to $200 million to help improve customer service, website service and more. Best Buy Canada has further plans that include making products from brick and motor shops available to customers across the country, as well as helping to make store pick-ups more broadly available.
Due to expenses via the consolidation of Future Shop locations, Best Buy is already expecting its year earnings to take a hit in the 10 to 20 cent ballpark. And though Best Buy suffered a 12% decline in international sales, it’s been heavily noted that Best Buy is highly committed to staying in Canada doing whatever it takes to improve their overall business.