Future Shop
Encyclopedia
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.
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. 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.
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. 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.
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. 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.
Best Buy Canada have 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, BC.
In many cases across the country, such as Lansdowne Mall in Richmond, BC, Heartland Town Centre in Mississauga, ON, Centre Laval, QC, Marché Central in Montreal and Promenades St-Bruno, QC, and Sherway Gardens and the Eaton Centre areas in Toronto, ON, and in St. John's, Newfoundland 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.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
's provinces
Provinces and territories of Canada
The provinces and territories of Canada combine to make up the world's second-largest country by area. There are ten provinces and three territories...
as of December 2008.
Future Shop was purchased for C$
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
580 million by Best Buy
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...
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
Edmonton
Edmonton is the capital of the Canadian province of Alberta and is the province's second-largest city. Edmonton is located on the North Saskatchewan River and is the centre of the Edmonton Capital Region, which is surrounded by the central region of the province.The city and its census...
at South Edmonton Common
South Edmonton Common
South Edmonton Common is Canada's largest retail power centre, and when fully developed, it will spread over and contain some of retail space, making it the largest open-air retail development in North America. It is located in south Edmonton, Alberta at 23 Avenue NW and Gateway Boulevard.This...
, which is currently the largest in Canada.
Beginnings
Hassan Khosrowshahi
Hassan Khosrowshahi is an Iranian-born Canadian entrepreneur. In Iran, Khosrowshahi earned degrees in economics and law from the University of Tehran. He settled in Vancouver in 1981. In 1982, Khosrowshahi founded Canadian electronics retailer, Future Shop. The chain expanded throughout western...
, who left Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
to settle in Vancouver
Vancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
, British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
to start a retail business. Khosrowshahi graduated from the University of Tehran
University of Tehran
The University of Tehran , also known as Tehran University and UT, is Iran's oldest university. Located in Tehran, the university is among the most prestigious in the country, and is consistently selected as the first choice of many applicants in the annual nationwide entrance exam for top Iranian...
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.
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. In August 1993, Future Shop went public on the Toronto Stock Exchange
Toronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...
, making $30 million dollars to be used for expansion and to pay off debt.
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 CityComputer City
Computer City was a chain of United States-based computer superstores operated by Tandy Corporation; the retailer was sold to CompUSA in 1998 and liquidated....
from CompUSA
CompUSA
CompUSA is a retailer and reseller of consumer electronics, technology products and computer services. Its headquarters are in Miami, Florida.Until its reorganization, CompUSA, Inc. was a wholly owned subsidiary of U.S. Commercial Corp S.A.B...
, 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
Adventure Electronics
Adventure Electronics Inc was a Canadian consumer electronics retailer with its old head office located in Anjou, Quebec. Smaller stores, sized much like RadioShack, were called Aventure Boutique...
in Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
and Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
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. 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
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...
.
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
.
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
Chapters
Chapters is a Canadian big box bookstore banner owned by Indigo Books and Music. Formerly a company in its own right competing with Indigo, the combined company has continued to operate both banners since their merger in 2001.-History:...
, a chain of book stores in Canada, but failed to come up with a reasonable offer for Chapters.
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 have 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
South Edmonton Common
South Edmonton Common is Canada's largest retail power centre, and when fully developed, it will spread over and contain some of retail space, making it the largest open-air retail development in North America. It is located in south Edmonton, Alberta at 23 Avenue NW and Gateway Boulevard.This...
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
Park Royal Shopping Centre
Park Royal Shopping Centre, opened in 1950, is a shopping mall located in West Vancouver, British Columbia, Canada. Park Royal is officially Canada's first covered shopping mall. Park Royal currently markets itself as five star shopping and has undergone significant changes to attain this...
in West Vancouver, BC.
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
, Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
inside Carrefour Angrignon
Carrefour Angrignon
Carrefour Angrignon is a Canadian shopping centre in the Montreal borough of LaSalle in Quebec. Popular stores include Sears, Zellers, Staples, Sears Home, Best Buy, Maxi and Famous Players. There is also a food court, located between Sears and Famous Players. Free outdoor customer parking is...
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 expert advice about product and warranty coverage to sell a complete solution. 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.2009 Corporate Restructuring
In March 2009 Future Shop removed several unproductive positions throughout the company, notably the DSDM (District Sales Development Manager), DOM (District Operations Manager) and many other positions throughout. 65 Department Sales Managers in Central Canada were also laid off in this restructuring. The Districts throughout Canada expanded to about 20 and are now more closely watched by the new DM (District Manager) position. This restructuring is an effort to improve sales as well as corporate response to all the associates' inquiries.Major product categories
- Computer hardwareComputer hardwarePersonal computer hardware are component devices which are typically installed into or peripheral to a computer case to create a personal computer upon which system software is installed including a firmware interface such as a BIOS and an operating system which supports application software that...
, software and accessories - Major applianceMajor applianceA major appliance, or domestic appliance, is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, or food preservation, whether in a household, institutional, commercial or industrial setting...
s and small household appliancesSmall applianceSmall appliance refers to a class of home appliances that are portable or semi-portable or which are used on tabletops, countertops, or other platforms in the United States of America... - StereoStereophonic soundThe term Stereophonic, commonly called stereo, sound refers to any method of sound reproduction in which an attempt is made to create an illusion of directionality and audible perspective...
and portable audioPortable audio playerA portable audio player is a personal mobile device that allows the user to listen to recorded audio while mobile. Sometimes a distinction is made between a portable player, battery-powered and with one or more small loudspeakers, and a personal player, listened to with earphones.-History:Portable...
equipment and accessories - Car audioCar audioCar audio/video , auto radio, mobile audio, 12-volt and other terms are used to describe the sound or video system fitted in an automobile. While 12-volt audio and video systems are also used, marketed, or manufactured for marine, aviation, and buses, this article focuses on cars as the most common...
and other such electronics - Televisions, VCRs, Blu-rayBlu-ray DiscBlu-ray Disc is an optical disc storage medium designed to supersede the DVD format. The plastic disc is 120 mm in diameter and 1.2 mm thick, the same size as DVDs and CDs. Blu-ray Discs contain 25 GB per layer, with dual layer discs being the norm for feature-length video discs...
and DVD playerDVD playerA DVD player is a device that plays discs produced under both the DVD-Video and DVD-Audio technical standards, two different and incompatible standards. These devices were invented in 1997 and continue to thrive...
s and other home theatreHome cinemaHome cinema, also commonly called home theater, are home entertainment set-ups that seek to reproduce a movie theater experience and mood with the help of video and audio equipment in a private home....
equipment - Digital cameraDigital cameraA digital camera is a camera that takes video or still photographs, or both, digitally by recording images via an electronic image sensor. It is the main device used in the field of digital photography...
s and accessories and video cameraVideo cameraA video camera is a camera used for electronic motion picture acquisition, initially developed by the television industry but now common in other applications as well. The earliest video cameras were those of John Logie Baird, based on the electromechanical Nipkow disk and used by the BBC in...
. - Digital photofinishing under the name FuturePhoto (shut down in 2008). Now provided by Kodak.
- PDAsPersonal digital assistantA personal digital assistant , also known as a palmtop computer, or personal data assistant, is a mobile device that functions as a personal information manager. Current PDAs often have the ability to connect to the Internet...
, cellular phonesMobile phoneA mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...
and other portable electronic devices - CDs, DVDDVDA DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
s and Blu-rayBlu-ray DiscBlu-ray Disc is an optical disc storage medium designed to supersede the DVD format. The plastic disc is 120 mm in diameter and 1.2 mm thick, the same size as DVDs and CDs. Blu-ray Discs contain 25 GB per layer, with dual layer discs being the norm for feature-length video discs... - Gaming console and portable systemsHandheld game consoleA handheld game console is a lightweight, portable electronic device with a built-in screen, game controls and speakers. Handheld game consoles are run on machines of small size allowing people to carry them and play them at any time or place...
and games - Satellite radioSatellite radioSatellite radio is an analogue or digital radio signal that is relayed through one or more satellites and thus can be received in a much wider geographical area than terrestrial FM radio stations...
(XMXM Radio CanadaXM Radio Canada was the operating name of Canadian Satellite Radio Holdings Inc. , a Canadian communications and media company, which was incorporated in 2002 to broadcast satellite radio in Canada...
and Sirius CanadaSirius CanadaSirius Canada is a Canadian company, a partnership between Slaight Communications, the Canadian Broadcasting Corporation and Sirius Satellite Radio, which was one of three services licensed by the CRTC on June 16, 2005 to introduce satellite radio service to Canada.On November 24, 2010, following...
)