The Energon Pub

News Credits: 9 · by **Editor** » Fri Mar 13, 2015 2:16 pm

Loblaws actually will likely be the big winner when all is said and done.

With the expansion plans they announced the other week, and the ability to negotiate with some of the larger lease holders for multiple locations at a time, Galen could make out like a bandit. Especially for some area where their market presence is lower.

News Credits: 4837 · by **william-james88** » Fri Mar 13, 2015 2:20 pm

Editor wrote:Loblaws actually will likely be the big winner when all is said and done.

With the expansion plans they announced the other week, and the ability to negotiate with some of the larger lease holders for multiple locations at a time, Galen could make out like a bandit. Especially for some area where their market presence is lower.

Do they sell Transformers?

News Credits: 293 · by **shajaki** » Fri Mar 13, 2015 2:41 pm

william-james88 wrote:
Editor wrote:Loblaws actually will likely be the big winner when all is said and done.

With the expansion plans they announced the other week, and the ability to negotiate with some of the larger lease holders for multiple locations at a time, Galen could make out like a bandit. Especially for some area where their market presence is lower.
Do they sell Transformers?

I was also wondering. Are they a Target'esq type store?

News Credits: 9 · by **Editor** » Fri Mar 13, 2015 2:43 pm

Depends on the name on the marquee.

Some of their smaller stores, Extra Foods, Independent Grocers, T&T, I doubt would have anything bigger than a legend class if anything.
The only actual Loblaws I've been inside is the one at Queens Quay in Toronto, and unless they were somewhere I missed, they don't have any.
That said I normally shop at "The Real Canadian Superstore" and all of the locations, at least the one around here" have toy sections with Hasbro stock. They don't normally have the best pricing, but they are an option.

I guess it will be a question of how they want to develop the Targets they acquire.

Like LegendaryAntiHero on Facebook · by **LegendaryAntiHero** » Tue Mar 17, 2015 3:49 pm

Some supermarkets in my area carry deluxes

News Credits: 293 · by **shajaki** » Sat Mar 28, 2015 8:09 pm

Published Saturday, March 28, 2015 10:23AM EDT
Last Updated Saturday, March 28, 2015 5:30PM EDT

The Future Shop brand appears to be a thing of the past in Canada, as the technology retailer's parent company moves to rebrand many of its stores under the Best Buy tag.

Best Buy Co., Inc., which owns and operates Future Shop and its competitor, Best Buy, confirmed the shift on Saturday.

In a statement, the company said it would close 66 Future Shop locations "effective today," with another 65 stores transitioning to Best Buy locations after a week-long shutdown.

Best Buy Canada says the move will eliminate 500 full-time and 1,000 part-time jobs. "The affected employees will receive severance, employee assistance and outplacement support," Best Buy said.

Many Future Shop employees turned up for work on Saturday morning to discover that they were locked out.

Brandon Buchanan, who used to work in mobile audio section at a Toronto store, said that a lot of his former co-workers were shocked by the news.

"That happened kind of suddenly, because a lot of the people I still know work here -- apparently, they showed up this morning and it was just locked out," Buchanan told The Canadian Press.

"I had planned on maybe coming back and checking it out for a job again now that I'm back in the city but I guess that's not happening," he added.

Michelle Derue, who showed up at downtown Toronto store on Saturday to purchase headphones, felt bad for the workers who lost their jobs, and said that they should have been notified sooner.

"It's not a good thing for them, they've got families … you should get some sort of advanced warning when things like this happen because Future Shop is a big store, so they should've known this way before just today," Derue said.

The president and COO of Best Buy Canada, Ron Wilson, said in a statement Saturday that the decision to cut jobs was not taken "lightly."

"Our first priority is to support them through this change," Wilson said. "I want to express my appreciation to the employees who are leaving for their contributions to Best Buy Canada."

Maureen Atkinson, a retail analyst with J.C. Williams Group, told The Canadian Press that the layoffs will put workers in a tough position as they will be competing in the retail job market alongside recently unemployed Target staff.

The American retail giant shuttered its Canadian stores in January, affecting more than 17,000 employees.

"I think it's not great if you work in retail," said Atkinson. There's a lot of retail people out on the street give the Target closures too, so I think it's going to be a challenge employment-wise," she added.

Many shoppers turned up at Future Shop locations Saturday to find them closed with "Coming Soon" signs posted in the windows advertising the partnership with Best Buy.

Ben McLeod was frustrated after taking a city bus to try to buy a TV from a downtown Edmonton Future Shop -- and seeing that the store wasn't set to re-open for a week.

"I spent $10 on a bus pass for no reason and end up coming here and finding the store is actually closed," said McLeod. "It's stupid they would do that and not tell anyone in advance."

The organization says it is reviewing its "real estate footprint" because Best Buy and Future Shop locations are often placed fairly close to one another, "often in the same parking lot."

"Currently, 80 per cent of our customers are within a 15-minute drive to a store and that won't change," Wilson said.

Best Buy says it will have 192 retail locations, including 56 Best Buy Mobile stores, after the restructuring is complete.

"It doesn’t surprise me, actually, because I know the same company owns both stores. So at some point I expected them to merge into one," Guy Mcloughlin, a Future Shop customer, told The Canadian Press.

Best Buy acquired Future Shop in 2001.

"I would always go to both stores anyway to comparison shop, because occasionally one would be cheaper than the other. I guess I lose that option now. But otherwise I'm just thankful we've got something like that still in Canada because if they went I don't know what would be left," Mcloughlin added.

Future Shop gift cards will be honoured at Best Buy's online store and at all retail locations, the company said. Future Shop product orders, warranties and service appointments will be transferred to Best Buy, and Best Buy stores will also accept Future Shop returns and exchanges.

As part of the restructuring, Best Buy Canada says it will invest "up to $200 million" into what it calls a "multi-channel customer experience" to beef up its online and in-store retail offerings. Among the expected changes will be a move to expand online sales so customers can order from stock at their local retail store and have it delivered to their front doors.

Marketing professor Robert Soroka, of Concordia University, says he's not surprised by Best Buy's move to scale back on "brick and mortar" stores and emphasize its online store.

"My feeling is this is just a natural progression," Soroka told CTV News Channel.

He says Best Buy is moving to strengthen its online store to compete with web retailers like Amazon. The company has also fallen victim to "showrooming," where people test out products in store but buy them for cheaper prices online.

The cost of the restructuring is expected to range from $250 million to $350 million over the next five years as Best Buy moves to rebrand some stores, sell off others, pay out severance packages and close out its rent agreements.

News Credits: 9 · by **Editor** » Mon Mar 30, 2015 1:01 pm

The Official response is a joke and a half.

The whole reason they opened stores in tandem in the same malls or close to each other has always been in order to "compete" against themselves. This has been a core part of their Canadian business plan ever since their acquisition.

I'm just a bit pissed as an hour ago a friend who was a groomsman at my wedding, and my daughters unofficial uncle was just terminated after almost 2 decades of work in the Graphics Department at Future Shop/Bust Buy Canadas Head Offices.

Two local malls who are losing their Targets now also have closed Future Shops in them. Our mall need fresh blood and soon.

So pissed right now....

News Credits: 4837 · by **william-james88** » Mon Mar 30, 2015 1:07 pm

Editor wrote:The Official response is a joke and a half.

The whole reason they opened stores in tandem in the same malls or close to each other has always been in order to "compete" against themselves. This has been a core part of their Canadian business plan ever since their acquisition.

I'm just a bit pissed as an hour ago a friend who was a groomsman at my wedding, and my daughters unofficial uncle was just terminated after almost 2 decades of work in the Graphics Department at Future Shop/Bust Buy Canadas Head Offices.

Two local malls who are losing their Targets now also have closed Future Shops in them. Our mall need fresh blood and soon.

So pissed right now....

Yeah, my local mall too. It's biggest attractions were Target, The bay, Best Buy and Futureshop. 50% of those are now no more.

News Credits: 293 · by **shajaki** » Mon Mar 30, 2015 1:17 pm

I'm pissed because FS actually had pretty awesome (and frequent) exclusives. And even though BB has their own, they are more often than not BB-USA only for some reason. I hope this isn't the end of our Canada only Steelbooks

News Credits: 4837 · by **william-james88** » Mon Mar 30, 2015 1:24 pm

shajaki wrote:I'm pissed because FS actually had pretty awesome (and frequent) exclusives. And even though BB has their own, they are more often than not BB-USA only for some reason. I hope this isn't the end of our Canada only Steelbooks

I didnt even know FS had exclusives. Could you give me some examples?

News Credits: 9 · by **Editor** » Mon Mar 30, 2015 1:52 pm

Hey if Amazon ever wanted to open local fulfilment/retail they would have tons to pick from.

I look at Central City the mall nearest me, the Target will close this week, the FS is gone as there is a BB across the parking lot. Staples and Canadian Tire are across the street, there is a T&T & Shoppers there already and a Superstore close by so Lowlaws won't be looking. Ikea has two locations within a 30 minute drive, and the next closest mall has the Bay, Sears & Wal-mart. TRU and Dollarama are close by. I guess as there is a Winners that a Homesense could go in, but unless Staples or TRU need to move, unless Simons in moving in, I've no clue as to who will want those spaces.

If the mall didn't have an office tower attached and is home to one of Simon Fraser University's Campuses, I'm not sure how much longer it would hold out losing 2 major tenants so quickly. At least when the Bay (moved to Guildford when they bought Woodwards) and Sears (moved to Guildford when they bought Eatons) moved out there was a decent gap between the two.

Like LegendaryAntiHero on Facebook · by **LegendaryAntiHero** » Wed Apr 01, 2015 11:56 am

Hopefully, a lot of the emptied stores will be acquired by Walmart or Toys R Us so you guys can still hunt for toys at whichever place replaces those Targets. They'd have to be big stores because Targets are always in large buildings

News Credits: 9 · by **Editor** » Wed Apr 01, 2015 1:34 pm

LegendaryAntiHero wrote:Hopefully, a lot of the emptied stores will be acquired by Walmart or Toys R Us so you guys can still hunt for toys at whichever place replaces those Targets. They'd have to be big stores because Targets are always in large buildings

That's the hard part, we don't have anyone large enough to replace those stores as a whole.

Since the 80's truly Canadian big box stores have decreased significantly. At the end of the 80's we had choices from:
The Bay / Hudson's Bay - no longer selling toys.
Sears (formerly Simpson-Sears) - greatly reduced due to restructuring, Just sold a few premium locations that will be taken over by Nordstrom.
Woolco - closed, many location became early Canadian Wal-marts
Woodwards (western Canada) - bought by the Bay
Eatons - Bought by Sears
Consumers Distributing / Toy City - closed due to financial trouble, last straw was TRU fully committing to Canadian expansion.
K-Mart - Closed their Canadian division almost 30 years ago now (I think my last purchase may have been Pretender Bumblebee) Zellers snapped up a number of the stores they leased.
And last but not least...
Zellers - owned by the Bay and shuttered when Target offered to buy the majority of their mall leases for their Canadian expansion. Only two stores remain as clearance outlets.

I'm sure some of the older fans in Eastern Canada can add a few more as well.

Long story short, there really isn't a magical store existing in Canada or that we know is looking to expand right now that is able to step in. A few may take the opportunity to step up locally or at select locations, and a few stores could take the opportunity to move to a larger space, but on a national level, Target has screwed us royally, not just in opening and closing but by taking Zellers away at the same time.

As far as the two you mentioned, Walmart has announced it's upcoming plans and Targets closing doesn't factor into them. Heck I know of one Walmart currently under construction half a click from a closing Target. TRU has said nothing about their plans.

News Credits: 293 · by **shajaki** » Wed Apr 01, 2015 2:22 pm

william-james88 wrote:
shajaki wrote:I'm pissed because FS actually had pretty awesome (and frequent) exclusives. And even though BB has their own, they are more often than not BB-USA only for some reason. I hope this isn't the end of our Canada only Steelbooks

I didnt even know FS had exclusives. Could you give me some examples?

Most notably: Steelbooks.

They are highly collectible (not actually steel, probably aluminium) cases normally made in limited quantities for select store. And FS used to be one of the best outlets for them. Walmart, Target, Kmart (sometimes), and Bestbuy (although almost exclusively BB USA) all get their own exclusive steelbooks, but none of them with the regularity of FS for some reason.

For example, here's FS's AOE steelbook:
(though in this particular case, BB USA had it too)

And as a bit of fun, here's the "holy grail" of steelbooks. FS's Ironman. Almost every run of SB's is limited, and this was (I believe) the first BluRay SB, and no one knew back then how collectible these were. At it's peak, a sealed one of these sold higher than 2K, and still fetch almost 1K. I have a mint one, but not sealed

News Credits: 4837 · by **william-james88** » Wed Apr 01, 2015 2:23 pm

Yeah, as Nicholas Angel said above, there isnt anyone to take over all these lots. The only big mover that popped it's head since is Lawblaws (a big grocery chain) but they wont be taking over every target. And not only that, but several Future Shops (electronics chain owned by best buy) are also leaving their giant lots.

What will most probably happen is that the malls once inhabited by the Targets (and future shops) will have their lots converted into a bunch of smaller outlets and kiosk shops like Footlocker, La Senza, Stokes and stuff of such.

There is no other retail giant to fill this void. And now that target is gone, I realize that Walmart no longer has any competition for big box general stores.

We have Giant Tiger and Rossy in Quebec but I dont think they are thinking of expanding and they are tiny compared to Walmart (and their toy aisle has less stuff than the dollarama toy aisle).

Also, our big shopping centre in Montreal is called the Eaton centre lol

News Credits: 4837 · by **william-james88** » Wed Apr 01, 2015 2:30 pm

shajaki wrote:
And as a bit of fun, here's the "holy grail" of steelbooks. FS's Ironman. Almost every run of SB's is limited, and this was (I believe) the first BluRay SB, and no one knew back then how collectible these were. At it's peak, a sealed one of these sold higher than 2K, and still fetch almost 1K. I have a mint one, but not sealed

Thanks for clarifying this stuff, I didnt know. And I'm glad you have such a great piece! I always thought limited edition blu rays and such were more to catch the buyer and not really much of a collectable.

But this is the part I have trouble understanding:

Futureshop has been owned by Best Buy for a looong time. Those exclusivity deals were presided by Best Buy (and owned by best buy acting as a governing umbrella company). So why wouldnt they just preserve those exclusivity deals and simply release them under Best Buy Canada? It's the same company, no?

News Credits: 9 · by **Editor** » Wed Apr 01, 2015 3:21 pm

Eaton's built a number of Eatin Centre's in their final push to be relevant.

Toronto and Montreal still have theirs. Victoria renamed it self Bay Centre after the Bay took over the primary lease.

The history for Vancouver's would take too long to explain, but it can be read here http://en.wikipedia.org/wiki/Metropolis_at_Metrotown

As for the Future Shop / Best Buy split....

I have known a few people who worked in FS stores before the BB purchase, and on friend who before being let go this week, had worked at "Future Shop Global Headquarters" since late 1990's.

Future Shop had been in operation for quite, starting as more computer based stores and transitioned into the larger electronics stores of the past two decades. A little after their biggest push to become Canada's premier electronics company, Best Buy started their Canadian expansion.

The guy who owned FS at the time, and known to most of us as Mr. K. spent months making plans to head them off, get shops into area that Best Buy was looking at and proclaiming I'll go under before they they win.... But everybody has their price.

The day started with a strange aura in the office. Mr K who normally was quite talkative and noticeable arrived, and when straight to his office without fanfare. About 10 AM a number of guys in suits with double briefcases arrived, and we shown to his office. They left about 75-90 minutes afterwards without the briefcases. It was at this time I received a call (about the 6 one since Mr K arrived) and by buddy simply said, I think Best Buy just bought the company... He was right.

It sounds like something out of a movie, but that is pretty much how it went down, the purchase was announced later that week, and Mr. K was gone. Best Buy then started moving their Canadian offices into FSGH.

The plan from day one was that both stores would have similar but not identical stock. Say Sony makes 6 versions of a TV, Versions a,b,d & f would be at Future Shop, and a,c,e & f would be at Best Buy. Using the same logic (or lack there of) exclusives were negotiated and approved by separate teams. If Movie Company A has 4 movies being released, both teams would talk with the company as to what exculsives would be possible, and them divide things among themselves to give the illusion that they were offering different products.

Bonus detail many were not aware of, while Bust Buy gift cards could not be used at Future Shop and vice versa, they have always been able to be redeemed on each others websites.

Hope that helps.

News Credits: 4837 · by **william-james88** » Wed Apr 01, 2015 3:41 pm

I am still curious to know if BB will just get all the FS exclusives now that there is not dividing to do. It sounds obvious to me, but I am just looking for some kind of confirmation.

News Credits: 9 · by **Editor** » Wed Apr 01, 2015 4:18 pm

Honestly, not likely.

The studios will only want one exclusive at Best buy, so while a couple things in the next month or two may be sold that way, anything not already signed and/or committed to will be negotiated. Anything here on out will be negotiated solely as Best Buy.

The studios would rather supply an exclusive version to a store not normally doing those than have one store sell both. might be an opportunity for HMV to get back in the game or another retailer to get a chance.

Like LegendaryAntiHero on Facebook · by **LegendaryAntiHero** » Wed Apr 01, 2015 5:10 pm

I had no idea there was a Castlevania steelbook. I want one now.

News Credits: 4837 · by **william-james88** » Wed Apr 01, 2015 5:58 pm

Editor wrote:
The studios would rather supply an exclusive version to a store not normally doing those than have one store sell both. might be an opportunity for HMV to get back in the game or another retailer to get a chance.

Oh man, HMV, totally forgot about them.

News Credits: 9 · by **Editor** » Wed Apr 01, 2015 6:01 pm

Honestly, they are making themselves easy to forget.
That said they are still worth keeping an eye on.

Like LegendaryAntiHero on Facebook · by **LegendaryAntiHero** » Mon Apr 13, 2015 4:21 pm

At the very least, I hope those empty Targets become an outlet mall with a toy store. The worst thing that can happen is if they get bought by a chain pharmacy

News Credits: 9 · by **Editor** » Mon Apr 13, 2015 5:46 pm

Nice idea, but the reality is that between TRU and Walmart a lot of smaller Canadian toy chains gave up a few years back.

There are a few small (2-3 location) companies, but as far as anything larger I can only even think of Toys Toys Toys in Ontario, and MasterMind Toys which while nifty shops and expanding, they focus more on educational than what's hot, and they prefer detached shops or stripmalls.

The only major way we will see toys in old targets is if TRU moves or opens new locations.

As far as chain pharmacies go, most of the Targets were in malls that already had Shoppers, Rexalls, London Drugs, or other chains. It's unlikely that many locations will be able to accept other pharmacies due to standing leases. (plus even the bigger of the stand free pharmacies would need less than a quarter of a standard Target footprint)

Oh well, at lease now as the Targets are slowing closing we may start to see who is actually attempting to acquire these spaces.

News Credits: 4837 · by **william-james88** » Mon Apr 13, 2015 8:31 pm

Editor wrote:
Oh well, at lease now as the Targets are slowing closing we may start to see who is actually attempting to acquire these spaces.

I thought it was already discovered that Loblaws would be taking some of those target spaces.
I am guessing the rest will simply be divided up into smaller outlets.