Future Shop closing all stores in Canada; 1,500 jobs lost

The Future Shop banner in Canada was shut down for good this morning as U.S. based owner Best Buy Co. consolidates the stores under the Best Buy banner, eliminating 500 full-time and 1,000 part-time positions.

In all 131 Future Shop stores were closed Saturday — 66 of them permanently. Another 65 will be closed for a week, reopening under the Best Buy banner.

“Currently, 80 per cent 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.”

Best Buy spokesman Elliott Chun said Best Buy will invest upwards of $200 million over the next two years, “to provide an improved single-brand customer experience, both in-store and online.”

Chun pointed out that many Future Shop and Best Buy stores are located next to each other — sometimes across the same parking lot.

“Best Buy stores have larger formats, which allows us to invest in appliances and in-store experiences,” Chun added.

He said the company’s store locator on BestBuy.ca has been updated to help customers via website and mobile app.

Future Shop employees will be offered severance packages and in some cases will be offered opportunity to reapply at Best Buy Canada, he added.

Of the 51 Future Shop stores in Ontario, 22 will be converting to the Best Buy brand and 30 are closing, according to Chun.

With these changes, there will be 55 Best Buy stores and 29 Best Buy Mobile stores serving customers in the province, said Chun.

Across Canada, Best Buy will have a total of 136 locations, in addition to 56 Best Buy Mobile stores.

Earlier this month, Best Buy Co., Inc. announced a plan to return excess capital to shareholders that included a special, one-time dividend of $0.51 per share (U.S.), or approximately $180 million, related to proceeds from a legal settlement, and a 21 per cent increase in the regular quarterly dividend to $0.23 per share, effective immediately.

More to come.