Best Buy is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. The company was founded in 1966 by James Wheeler and Richard M. Schulze. Originally known as the “Sound of Music” department store, Best Buy rebranded in 1983 with an emphasis on consumer electronics. Today, the company employs more than 70,000 people worldwide. Its products include everything from video games to TVs. It is ranked as one of the top three retail chains in the United States.
Future Shop
The Future Shop of Canada operates 140 stores throughout the country. Founded in 1982, it was sold to Best Buy in 2001 for C$580 million. Today, the chain has about 9,000 employees in nearly two dozen countries. Its recent turnaround has led to a dramatic increase in profits. Future Shop has become a major name in the electronics and computer business. It has also expanded aggressively into other countries, including the U.K.
While the company is closing about half of its stores, it is not letting go of the Future Shop completely. Most Future Shop locations are adjacent to Best Buy stores and are located in the same parking lots. The two companies operate separate websites, which will have to be merged in the near future. Best Buy will continue to operate its other stores in the same area. Best Buy plans to offer employees additional training in new roles, such as working from home.
The Future Shop has a large footprint, averaging 21,000 square feet. It has also long employed commissioned sales associates, which Best Buy famously ended. Founded in 1982, Hassan Khosrowshahi grew the chain into a profitable business by incorporating it across Canada. In 1992, it opened 28 stores in five states. Despite its rapid expansion, the company had lost millions of dollars that year.
The future of Future Shop is uncertain, but Canadian consumers should be encouraged to shop elsewhere. Future Shop Canada has been the largest electronics retailer in Canada. Despite its lackluster sales, Future Shop Canada’s stores remain an important part of its customer base. The future of Best Buy Canada is bright. Best Buy Canada plans to expand its store network. In the meantime, the company plans to focus on rebranding Future Shop locations as Best Buy stores.
While the Canadian Future Shop and the Best Buy Canada stores have had a turbulent history, the company plans to unify them in the future. As a result, Best Buy Canada will eliminate 500 full-time jobs and a further 1,000 part-time jobs. The company plans to reopen 65 Future Shop stores under the Best Buy brand, creating a total of 192 stores across the country. Its latest restructuring will result in a more streamlined business structure. Earlier this year, the U.S. discount giants Target shut down its Canadian operations due to poor location and customer complaints. Sony Canada and Mexx also announced their intention to shut down their stores in Canada.
Magnolia Audio Video
After acquiring Magnolia Audio Video for $87 million, Best Buy is continuing to tinker with the brand. Its latest project is a Magnolia Design Center located in Costa Mesa, Calif. If you’re a home theater enthusiast, you may have already discovered the Magnolia Home Theater. Or, perhaps you were just browsing the store when you spotted a 70″ plasma TV or leather couch. Regardless, a trip to Best Buy isn’t complete without a stop at Magnolia Home Theater.
In addition to its standalone stores, Magnolia operates hundreds of smaller Magnolia Home Theater locations. In 1954, Len Tweten founded Magnolia, which was originally named Magnolia Stationers & Camera. He was obsessed with music and began selling high-fidelity audio products. The company became one of the largest consumer electronics retailers in the U.S. and Canada. The company was acquired by Best Buy in 2000 and continues to be headquartered in Seattle, Washington.
In December 2003, Best Buy Co. issued its first dividend since the company was founded. Best Buy also opened its 600th store in the U.S., a record for a single year. The chain also acquired Magnolia Hi-Fi, Inc. for $88 million. The Magnolia chain had 13 high-end consumer electronics stores in Washington. The company took its name from the neighborhood of Magnolia in Seattle. The company plans to continue acquiring Magnolia’s high-end audio and video stores, but it will not be as profitable as it once was.
