Retail

Best Buy Closes 66 Canadian Stores, Fires 1,500 Workers

Best Buy logo
courtesy of Best Buy
Electronics retailer Best Buy Co. Inc. (NYSE: BBY) said Saturday that it is closing 66 of its Canadian Future Shop locations and eliminating approximately 500 full-time and 1,000 temporary jobs. An additional 65 Future Shop stores will be closed for a week as the company consolidates the stores under the Best Buy brand.

Best Buy Canada, a subsidiary of Best Buy, said that “a significant number of its Future Shop and Best Buy stores are located adjacent to each other, often in the same parking lot.” The subsidiary’s president said:

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.

Revenue from the company’s international segment dropped 12.4% year-over-year in the fourth quarter to $1.51 billion, and same-store sales were down 4%. Best Buy completed the sale of its China business in February, leaving Canada as the company’s sole international market.

Best Buy said it expects to increase its capital spending in Canada by about $160 million of the next one to two years and to record restructuring charges and non-restructuring impairment charges of $200 million to $280 million. Earnings per share will take a hit in the range of $0.10 to $0.20 in fiscal year 2016.

Best Buy acquired Future Shop in 2001 for $580 million. Before that acquisition Future Shop had entertained a plan to enter the U.S. market and compete directly against Best Buy. At the time of the acquisition, Future Shop had 88 stores in Canada.

ALSO READ: 10 Retailers Closing the Most Stores

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.