Best Buy Canada expands as parent stalls

Burnaby-based Best Buy Canada opened a new store in Calgary last Friday and plans to open a new store on Ontario Street near Marine Drive ...

Burnaby-based Best Buy Canada opened a new store in Calgary last Friday and plans to open a new store on Ontario Street near Marine Drive in Vancouver in mid-November.

Once the new stores are open, the chain will have 79 Best Buy-branded stores, 47 stores branded Best Buy Mobile and 144 Future Shop stores, spokeswoman Danielle Jang told Business in Vancouver.

The openings, however, follow ominous warnings last week from its struggling parent, Best Buy Co. Inc. (NYSE:BBY), which sent the stock to US$14.96 on October 26 – the lowest close since November 2002.

Best Buy warned investors that earnings and same-store sales would fall in its third quarter.

Best Buy Canada told BIV last year that it employs 19,944 staff, including 4,042 in B.C., and that its sales totalled more than $5.6 billion in 2010 – enough to rank as B.C.'s second-largest private company.

It saw a second-quarter 2012 sales drop in percentage terms in the "high single-digits" compared with the same quarter a year ago, parent Best Buy Co. revealed August 21. That drop was in Best Buy Canada's Future Shop and Best Buy-branded stores and stemmed from sluggish laptop computer, digital imaging and home theatre sales.

Sales in Best Buy Co.'s international division, which also includes stores in China and Europe, fell a similar 8.2%.

Best Buy Co.'s relatively new CEO, Hubert Joly, is a former CEO of the Carlson travel company and a turnaround expert, but has no prior experience at a retail venture. He has started to restructure the company, but Jang said no structural change has yet affected Best Buy Canada, which is headed by president Mike Pratt.

gkorstrom@biv.com

@GlenKorstrom

comments powered by Disqus

More from Retail & Manufacturing

BIV on Global BC September 19, 2017: Toys "R" Us bankruptcy protection; ...

Hayley Woodin discusses Toys "R" Us filing for bankruptcy protection. Plus: Canada and the UK work toward a new free trade deal

Read Article

Burnaby’s Whistler Water thirsty for global markets

Company’s change of ownership helps breathe new life into bottled-water business

Read Article

Surrey-based company redefines mobility

Arktos Developments Ltd. nominated by Surrey Board of Trade for innovation

Read Article

Indochino expands HQ, moves to Granville Street

Custom suit-seller also announces managment-team promotions

Read Article

Granville Island merchants mull area’s future

With departure of Emily Carr University, businesses weigh in on what should take its place

Read Article

Subscribe to our mailing lists

You may withdraw your consent at any time.

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
Business in Vancouver Media Group
303 West 5th Avenue, Vancouver, British Columbia
V5Y 1J6 · Canada
604-688-2398
×