Best Buy Canada officials believe less is more.
This week Best Buy Canada announced the consolidation of Future Shop and Best Buy stores and websites under the Best Buy brand and a plan to invest up to $200 million to build a leading multichannel customer experience.
To achieve these goals, Best Buy Canada, a subsidiary of Best Buy Co., Inc.–which owns and operates both Best Buy and Future Shop stores–will consolidate the Future Shop and Best Buy stores and websites under the Best Buy brand.
Best Buy Canada reviewed its real estate footprint to address the fact that a significant number of its Future Shop and Best Buy stores are located adjacent to each other, often in the same parking lot. As a result, the company closed 66 Future Shop locations. What’s more, an additional 65 Future Shop stores will be temporarily closed for one week as they begin their transition to the Best Buy brand. The company will now have a total of 192 locations across Canada, including 136 large-format stores and 56 Best Buy Mobile stores.
“Currently, 80% of our customers are within a 15-minute drive to a store and this won’t change,” said Ron Wilson, President and COO of Best Buy Canada. “We will continue to have a strong store presence in all major markets in Canada.”
As a result of this consolidation, about 500 full-time and 1,000 part-time positions will be eliminated. The affected employees will receive severance, employee assistance, and outplacement support.
Best Buy Canada wants to provide a seamless customer experience to all Future Shop and Best Buy customers throughout this transition. All Future Shop gift cards will be accepted at any Best Buy Canada location and at BestBuy.ca.
Existing product orders, service appointments, and warranties will continue to be honored and Future Shop purchases to be returned or exchanged will also be accepted at any Best Buy.
“Any decisions that impact our people are never taken lightly; our first priority is to support them through this change,” Wilson said. “I want to express my appreciation to the employees who are leaving, for their contributions to Best Buy Canada.”
The company plans to invest up to $200 million in Best Buy stores and BestBuy.ca to build a leading multichannel customer experience. This multi-faceted strategy will include: (1) launching major home appliances in all stores; (2) working with vendor partners to bring their products to life in a more compelling way; (3) increasing staffing levels to better serve customers; (4) investing in the online shopping experience, for example by expanding in-store pick-up areas for online customers and launching a ship-from-store program, making in-store inventory available to online customers across the country.