Best Buy (NYSE:BBY) announced that it plans to shutter 66 of its Future Shop electronics stores in Canada. These closings amount to roughly half of the company's existing Canadian locations, and will entail the layoff of 1,500 full- and part-time employees.
Best Buy plans to rebrand the remaining 65 stores under its own name and will invest up to $160 million to improve operations, reported Bloomberg.
The retailer pulled a similar move four years ago in China, when it sold off all Best Buy stores and refocused on the 184 stores under the Five Star banner. Ultimately, last winter, Best Buy announced that it would pull out from China entirely to focus on its North American stores.
After the changes, Best Buy will operate 192 locations across Canada, which includes 136 regular format stores and 56 Best Buy Mobile stores, reported the Associated Press.
Future Shop gift cards will continue to be accepted at Best Buy Canada locations and online. Future Shop merchandise can also be returned at Best Buy.
It's been a tough year for several U.S. retailers in Canada, resulting in the shutdown of Canadian stores for big names such as Target (NYSE:TGT) and Sears (NYSE:SHLD).
-See this Bloomberg article
-See this Associated Press article
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