Future Shop sudden store closings this morning have left employees and customers baffled.
Its parent company, Best Buy, announced today that Future Shop will be closing 66 stores effective immediately. Simultaneously, 65 stores will be closed temporarily for a week as they convert into Best Buy stores.
Best Buy said that nearly 500 full-time employees and some 1000 part-time workers will be losing their jobs as a result. However, they are assured that they will receive severance pay, employee assistance and outplacement support.
“Any decisions that impact our people are never taken lightly; our first priority is to support them through this change. I want to express my appreciation to the employees who are leaving, for their contributions to Best Buy Canada,” Ron Wilson, Best Buy president and CEO, said in a written release.
Best Buy Canada claims that it is a direct result of reviewing its real estate footprint and recognizing that most Future Shop and Best Buy stores are adjacent to each other often in the same parking lot
Ron Wilson added that, “Currently, 80 per cent of our customers are within a 15 minute drive to a store and this won’t change. We will continue to have a strong store presence in all major markets in Canada.”
In order to make the transition as smooth as possible, Best Buy is taking measures to up its customer service. Customers need not be worried about Future Shop gift cards or warranties as Best Buy will honour them at any location across the country. Existing product orders, service appointments and warranties will be taken care of at Best Buy stores. Future Shop purchases can be returned or exchanged at any Best Buy location based on the preexisting store return policy.
The electronics market, as we know it, is already cutthroat and yet unstable with the given Canadian economy. Hence, as a result of today’s announcements, Best Buy Co., Inc. expects an increase in its apital spending by up to $US 160 million in the span of the next two years.
While Best Buy had purchased Future Shop in 2001 for $580 -million, to date it continued to operate as two separate stores. With the consolidation, Best Buy will now have a total of 192 locations across Canada.
The closure of Future Shop stores will add to the list of stores closing down in Canada in 2015. These include, but are not limited to Jacob, Mexx and the biggest hit to Canadian economy, Target Canada which has 80 stores closing by Easter weekend.
