Future Shop: Difference between revisions
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===Beginnings=== |
===Beginnings=== |
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[[Image:FutureShopStorePhoto.jpg|thumb|left|Future Shop in Ottawa]] |
[[Image:FutureShopStorePhoto.jpg|thumb|left|Future Shop in Ottawa]] |
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Future Shop was founded in 1982 by Iranian entrepreneur [[Hassan Khosrowshahi]], who left [[Iran]] to settle in [[Vancouver]], [[British Columbia]], [[Canada]] to start a retail business.<ref name=futureshop>{{cite web|url=http://www.fundinguniverse.com/company-histories/Future-Shop-Ltd-Company-History.html |title=Future Shop Ltd. Company History |publisher=Fundinguniverse.com |date= |accessdate=2012-01-10}}</ref> Khosrowshahi graduated from the [[University of Tehran]] with a degree in law and economics and was a part of the family that owned the Minoo Industrial Group, a large Iran manufacturer of pharmaceuticals, cosmetics, and food products. Khosrowshahi planned to open a chain of |
Future Shop was founded in 1982 by Iranian entrepreneur [[Hassan Khosrowshahi]], who left [[Iran]] to settle in [[Vancouver]], [[British Columbia]], [[Canada]] to start a retail business.<ref name=futureshop>{{cite web|url=http://www.fundinguniverse.com/company-histories/Future-Shop-Ltd-Company-History.html |title=Future Shop Ltd. Company History |publisher=Fundinguniverse.com |date= |accessdate=2012-01-10}}</ref> Khosrowshahi graduated from the [[University of Tehran]] with a degree in law and economics and was a part of the family that owned the Minoo Industrial Group, a large Iran manufacturer of pharmaceuticals, cosmetics, and food products. Khosrowshahi planned to open a chain of consumer and home electronics stores and take over the Canadian retail market. His associate, Ardeshir Ziabakhsh (Ardy Zia), took the role of president and CEO of the newly formed company and Khosrowshahi himself served as chairman and founder. In 1983, Future Shop opened the first three stores, all of which were in British Columbia. The company sold computers, software, games, videocassettes, audio equipment, music, and other items. By December 1983, the first month all of the Future Shop stores were opened and making business, the company reached $2.8 million in sales.<ref name="futureshop" /> |
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By 1993, Future Shop became the largest retailer of computers and consumer electronics in Canada and was operating 38 stores across the country and parts of the United States.<ref name="futureshop" /> In August 1993, Future Shop went public on the [[Toronto Stock Exchange]], making $30 million dollars to be used for expansion and to pay off debt. |
By 1993, Future Shop became the largest retailer of computers and consumer electronics in Canada and was operating 38 stores across the country and parts of the United States.<ref name="futureshop" /> In August 1993, Future Shop went public on the [[Toronto Stock Exchange]], making $30 million dollars to be used for expansion and to pay off debt. |
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Revision as of 18:11, 6 March 2012
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| Company type | Division of Best Buy |
|---|---|
| Industry | Retail |
| Founded | 1982 |
| Headquarters | Burnaby, British Columbia, Canada |
Key people | Michael Pratt - President (Best Buy Canada), Charles Tobin - Senior Vice President (Future Shop) |
| Products | Electronics |
| Revenue | $5.0 billion CAD (2008) |
Number of employees | 14,000 |
| Parent | Best Buy |
| Subsidiaries | None |
| Website | www |
Future Shop is Canada's largest consumer electronics retailer. Future Shop currently operates a total of 146 stores across all of Canada's provinces as of December 2008.
Future Shop was purchased for C$580 million by Best Buy on November 4, 2001. The company was renamed Best Buy Canada Ltd.—a wholly owned subsidiary of its American parent. They have continued to operate Future Shop as a separate division, with most locations under their original name. Future Shop continues to grow and open new stores across Canada. In December 2008, Future Shop opened its new flagship store in Edmonton at South Edmonton Common, which is currently the largest in Canada.[1]
History
Beginnings
Future Shop was founded in 1982 by Iranian entrepreneur Hassan Khosrowshahi, who left Iran to settle in Vancouver, British Columbia, Canada to start a retail business.[2] Khosrowshahi graduated from the University of Tehran with a degree in law and economics and was a part of the family that owned the Minoo Industrial Group, a large Iran manufacturer of pharmaceuticals, cosmetics, and food products. Khosrowshahi planned to open a chain of consumer and home electronics stores and take over the Canadian retail market. His associate, Ardeshir Ziabakhsh (Ardy Zia), took the role of president and CEO of the newly formed company and Khosrowshahi himself served as chairman and founder. In 1983, Future Shop opened the first three stores, all of which were in British Columbia. The company sold computers, software, games, videocassettes, audio equipment, music, and other items. By December 1983, the first month all of the Future Shop stores were opened and making business, the company reached $2.8 million in sales.[2]
By 1993, Future Shop became the largest retailer of computers and consumer electronics in Canada and was operating 38 stores across the country and parts of the United States.[2] In August 1993, Future Shop went public on the Toronto Stock Exchange, making $30 million dollars to be used for expansion and to pay off debt.
By the end of 1995, Future Shop's sales had reached more than $1 billion, with more than $38 million EBITDA (earnings before interest, taxes, depreciation and amortization)
In 1997, Future Shop announced a change in management, with Ziabakhsh leaving the company. Khosrowshahi took on the roles of president and CEO in addition to serving as chairman. Many people from company headquarters were let go during this transitionary period.
At the end of March, Future Shop's Canadian division had produced record-setting sales and earnings for the company; however, the company's earnings were down 20 percent from the previous year, because of many losses caused by its failing U.S. operations. Despite plans for more locations in the U.S. over the next several years, the company instantly stopped any new plans for further expansion in the United States until the existing U.S. stores improved their performance in sales.
Focusing on Canadian markets
In 1998, Future Shop purchased the Canadian division of Computer City from CompUSA, which was only three months after the Computer City chain had been merged into CompUSA and either converted to CompUSA or closed and liquidated. During the next year, two of the Computer City retail stores had been liquidated because of poor sales. In addition, the competing Adventure Electronics in Ontario and Quebec closed, leaving Future Shop as the only big-box electronics retailer in Canada.
By the end of 1998, the U.S. locations of Future Shop were performing badly, with $53 million dollars in losses over the last few years, and Future Shop projected another $30 million in losses would occur by the end of the next year. After major losses in sales, in March 1999, the company announced that it would close U.S. operations, holding liquidation sales and closing down for good in the summer.[3] The closures left Future Shop with 81 stores across Canada. Many of the former stores ended up converting to one of its major U.S. competitors, Best Buy.
In 2000, Future Shop had owned 83 Future Shop stores and five Computer City stores. In June 2000, Future Shop announced plans to open flagship stores in downtown Vancouver, Toronto, and Montreal.
In February 2001, Future Shop announced that the company would close and liquidate the five remaining Computer City stores because of poor sales. At the same time, Future Shop also attempted to acquire Chapters, a chain of book stores in Canada, but failed to come up with a reasonable offer for Chapters.[4]
Best Buy buyout
In March 2001, American-based Best Buy acquired Future Shop for $580 million Canadian. Despite possible conversions to the Best Buy nameplate, Future Shop was to be run as a separate division under the name of Best Buy Canada. The acquisition caused Khosrowshahi to step down as president. The other executives from Future Shop retained their positions within the company.
Best Buy Canada has continued to operate Future Shop as a separate division, with most locations under their original name. Future Shop stores are still being added, most recently in South Edmonton Common in Edmonton, Alberta. The company has also begun renovating some of its stores to focus more on product specialty areas, to separate video games into their own department, and to create a central "hub" featuring employees specializing in connecting different devices together. The first such renovated Future Shop store opened in August 2008 at Park Royal Shopping Centre in West Vancouver, British Columbia.
In many cases across the country, such as Lansdowne Centre in Richmond, British Columbia, Heartland Town Centre in Mississauga, Ontario, Centre Laval, Laval, Quebec, Marché Central in Montreal and Promenades Saint-Bruno, Saint-Bruno-de-Montarville, Quebec, and Sherway Gardens and the Toronto Eaton Centre areas in Toronto, Ontario, and in St. John's, Newfoundland and Labrador either the existing Future Shop location is in the same shopping centre as the more-recently opened Best Buy location or the two stores open in tandem in close proximity. The former Future Shop store in Montreal, Quebec inside Carrefour Angrignon had been converted to Best Buy in 2005, even though Future Shop moved nearby outside the mall before that.
Classes of Employees
Future Shop employees are separated into several classes. The commission-compensated sales force consists of "Product Experts" who provide advice about product and warranty coverage. Non-commissioned salespeople (such as those in the Entertainment department) are referred to as "Sales Associates." Further to that, customer service representatives dealing with returns, exchanges, and customer inquiries are referred to as "Customer Service Specialists", whereas the representatives dealing with terminal transactions at cashiers and purchase verification are known as "Customer Service Representatives". The operations and warehousing staff are called "Merchandisers", the home-theater and car audio installation team are the "Installers", and the computer troubleshooting team are the "Technicians". In 2007 all "Sales Associates" were changed back into "Product Experts", to keep the brand distinction between Best Buy and Future Shop. In 2008, all home theater installers, car installers, and computer technicians, were rebranded as "ConnectPro Experts" in order to have a more marketable name for computer/home theatre/car services.[5]
Major product categories
- Computer hardware, software and accessories
- Major appliances and small household appliances
- Stereo and portable audio equipment and accessories
- Car audio and other such electronics
- Televisions, VCRs, Blu-ray and DVD players and other home theatre equipment
- Digital cameras and accessories and video camera.
- Digital photofinishing under the name FuturePhoto (shut down in 2008). Now provided by Kodak.
- PDAs, cellular phones and other portable electronic devices
- CDs, DVDs and Blu-ray
- Gaming console and portable systems and games
- Satellite radio (XM and Sirius Canada)
References
- ^ "Future Shop Boxing Day Shopping Outcome and Trends". Newswire.ca. Retrieved 2012-01-10.
- ^ a b c "Future Shop Ltd. Company History". Fundinguniverse.com. Retrieved 2012-01-10.
- ^ Harrington, Mark (1999-03-09). "Future Shop to Close U.S. Stores". Crn.com. Retrieved 2012-01-10.
- ^ "Timeline for Chapters". Allbusiness.com. Retrieved 2012-01-10.
- ^ "Future Shop Launches New ConnectPro Installation Services". Cnw.ca. Retrieved 2012-01-10.
External links
