In the United States, Radio Shack has just filed for bankruptcy. In Canada, Target has announced they are leaving the entire country. Sony in Canada is closing its stores. The question is whether this is a trend or is this a blip. I’m thinking this will be a growing trend. I’m not taking this topic lightly. People have jobs with these companies and it’s terrible to be losing your job, so it’s with discomfort that I discuss this subject.
Who’s next in Canada? I would suspect that The Source may not be doing so well. They are our Radio Shack but I’m not sure the relationship that may or may not exist with the United States brand. It’s pretty clear at this point that electronics is ultra competitive and with most big stores doing price matching, it’s a tough go here in Canada. Sony packed up, so that says something about the marketplace also. I’ve just seen that Staples in the USA is buying out Office Depot. That’s a curious move because with the clearance sale prices at Staples Canada lately, it’s making me wonder what their future is in Canada too. With Target packing up and leaving, nothing can be out of the question now. I don’t think the retail shrinking is over just yet in this country.
Is this the Amazon influence? Perhaps it is. As the online shopping grows along with shrinking margins on technology products, the overhead of running retail in Canada becomes strained. WalMart has been able to dominate the retail space in Canada and Amazon has been able to dominate the online space. Of course the giants, Future Shop and Best Buy take up most of the electronic and technology retail market in Canada. It’s pretty tough to match their marketing and brand presence considering both brands are Best Buy.
So what’s your feeling about these brands closing shop? Do you feel this is going to continue now that online shopping is growing by leaps and bounds?