Best Buy to Keep Canadian Small-Format Mobile Phone Stores Open Amid US Closures

Date:

Share post:

US-based consumer electronics retailer Best Buy has announced that it will close all 250 of its small-format mobile phone stores in the United States, saying that the locations had become less profitable and account for about 1% of total revenue. Best Buy says that its small-format Canadian stores will remain open, however. 

On Wednesday afternoon, Best Buy’s US CEO sent a memo to employees that the US stores will close by the end of May, and that every effort will be made to retain workers. 

In a statement, Best Buy Canada says: 

“The announcement made in the U.S. does not impact our mobile business here in Canada. Best Buy Mobile stores in Canada continue to be an incredibly important part of our overall company strategy and we remain firmly committed to the business.”

Best Buy launched its small-format mobile phone stores in 2006. Things have certainly changed since then — for example, Apple’s popular iPhone hadn’t even launched then.

Stores average about 1,400 square feet each, whereas a typical Best Buy store spans about 40,000 square feet. 

Costs to run Best Buy’s smaller US stores are high and many are in higher-rent shopping centres — in the United States, about 85% of these smaller stores are located within about 5 kilometres of a big-box Best Buy store. 

“While tempting to spin this as a death of retail signal in the US, it is more likely simply addressing realities in the cell phone specialty category and the move big brands like Apple and Samsung have made in direct-to-consumer.  The Canadian mobility landscape is not yet as cutthroat as the US,” said David Ian Gray, consultant and retail strategist/founder of DIG360

Best Buy operates 56 mobile phone stores in Canada, which represents a penetration about twice that per capita when compared to the United States. The provincial breakdown includes 12 stores in British Columbia, nine in Alberta, 28 in Ontario, six in Quebec, and one in Nova Scotia. Many of these are in the country’s leading malls. 

Best Buy entered Canada in 2002 with eight stores in the Greater Toronto Area, and it now boasts almost 200 stores in all 10 Canadian provinces. Its Canadian headquarters are in Burnaby, east of Vancouver.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

Elevating Canadian Retail: How JLL’s Expertise Reshapes Property Management [Interviews]

Landlords are increasingly turning to JLL for pioneering property management solutions that prioritize both enhanced customer experiences and sustainability.

Gen Z’s Digital Upbringing Meets a Passion for Tangible Retail and Authentic Brands [Interview]

A new report on Gen Z, born between 1997 and 2012, provides insight into consumer behaviours as well as a look into the upcoming Generation Alpha.

Interview with Giant Tiger’s New CEO Gino DiGioacchino on the Future of the Iconic Canadian Retailer [Interview]

DiGioacchino speaks to Retail Insider after being appointed as the new President and CEO of Giant Tiger, and discusses the future of the business and importance of maintaining strong connections with local communities.

Purdys Chocolatier Expands Footprint with Pop-Up Stores [Interview]

The strategy involves providing customers with a taste of Purdys' renowned chocolates in areas where the brand hasn't had a presence before.

Colliers Report Emphasizes the Retail Advantage of Bridging the Digital-Physical Divide [Interview]

A recent report by Colliers Real Estate Management Services reveals that retailers who effectively blend their online and physical store operations are 35% more likely to achieve profitability, with the study emphasizes the importance of omnichannel strategies, convenience, property maintenance, and retailer-driven ESG initiatives.

Preview of ICSC@CANADA Conference 2023: Retail, Technology, and Networking Opportunities in Toronto [Interview]

Craig and Kyle Tomlin, Director of Events in Canada for ICSC, discuss the highly anticipated ICSC@CANADA 2023 conference, set to take place from October 2nd to 4th at the Metro Toronto Convention Centre North Hall in downtown Toronto.

Canadian Grocers Take a Page from Carrefour’s Playbook to Tackle ‘Shrinkflation [Op-Ed]

French supermarket chain Carrefour has labeled products impacted by reduced size, and similar measures may be adopted in Canada to enhance transparency in food pricing, says Sylvain Charlebois.

Jeweller Mejuri Debuts Personalized App and Innovative Membership Program; Plans Expansion with 5 New Stores [Co-Founder Interview]

The popular brand's personalized mobile app and membership program aim to enhance customer engagement and personalization, as Mejuri enters major markets with stores.

Fast-Casual Restaurant Concept MightyBird Opening 1st Location in Toronto in a Partnership [Interviews]

The new concept at Union Station will be the first of many in a partnership between Eat Up Canada and Open Concept Hospitality.

KIT + ACE Launches Store Expansion in Canada Under New Ownership [Interview]

The Vancouver-based retailer will open two locations this fall in Toronto and Calgary, with plans for a substantial expansion into 2024 says CEO David Lui.

Casual Steakhouse Chain MR MIKES Expanding Further in Canada [Interview]

With plans for continued expansion into Western Canada and Ontario, the restaurant chain is evolving its concept and targeting smaller markets to establish itself as a hub for local communities.

Canadian Retail Sales: A Slight Recovery Amidst Economic Challenges [J.C. Williams Group Analysis]

The analysis explores the noteworthy trends in the health and wellness sector, the resilience of certain retail categories, and the impending holiday season's strategic considerations for retailers.

Bloor Street Retail Transformation: Luxury Brands, Renovations, and New Openings in Toronto [Podcast]

Craig and Lee take a deep dive into the dynamic changes occurring on Toronto's Bloor Street West, noting the street's resurgence as a thriving hub for luxury shopping in the city.

Ricardo’s Kandy Korner to Open Flagship Candy Store at CF Toronto Eaton Centre in Toronto [Interview]

Entrepreneur Ricardo Rizaie says he’s planning to take his experiential candy retail concept across Canada after opening a third Canadian storefront in downtown Toronto.

PizzaForno Expands Into Toronto’s Public Transit System, Sets Sights on Airport Locations for Automated 3-Minute Pizzas [Interview]

This innovative move marks PizzaForno's entry into the public transit sector, and demonstrates its commitment to becoming the fastest-growing pizza chain in North America by 2024.

Calgary’s Retail Space Crunch Drives Surge in Rental Rates and Demand [Report]

A variety of complicated factors are at play as Calgary retail space sees demand given market growth, while new supply is limited due to factors such as construction costs.

Lush Cosmetics Sets Ambitious Expansion Plans for Canada Including New Spa Locations, Services, and Entertainment Partnerships [Interview]

The UK-based retailer is innovating with its Canadian operations with enhanced customer experiences and unique treatments, while launching a new app to facilitate bookings and provide more information about products and services.

Canadian Consumers Adjust to Higher Cost of Living [Survey/Video Interview]

An Angus Reid survey asked Canadians how they're navigating elevated inflation, a higher cost of living and a potential recession.

Canadian Shoppers Embrace Generative AI for Shopping Suggestions: Report

The groundbreaking Salesforce report focuses on the growing importance of AI-driven personalization in the retail sector.

Inside the New KITH Store on Yorkville Avenue in Toronto [Photos]

The stunning storefront took months to build, features Kith Treats and a restaurant concept from New York City, and could be a game changer for the Bloor-Yorkville area. 

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Elevating Canadian Retail: How JLL’s Expertise Reshapes Property Management [Interviews]

Landlords are increasingly turning to JLL for pioneering property management solutions that prioritize both enhanced customer experiences and sustainability.

Gen Z’s Digital Upbringing Meets a Passion for Tangible Retail and Authentic Brands [Interview]

A new report on Gen Z, born between 1997 and 2012, provides insight into consumer behaviours as well as a look into the upcoming Generation Alpha.

Interview with Giant Tiger’s New CEO Gino DiGioacchino on the Future of the Iconic Canadian Retailer [Interview]

DiGioacchino speaks to Retail Insider after being appointed as the new President and CEO of Giant Tiger, and discusses the future of the business and importance of maintaining strong connections with local communities.

Purdys Chocolatier Expands Footprint with Pop-Up Stores [Interview]

The strategy involves providing customers with a taste of Purdys' renowned chocolates in areas where the brand hasn't had a presence before.

Colliers Report Emphasizes the Retail Advantage of Bridging the Digital-Physical Divide [Interview]

A recent report by Colliers Real Estate Management Services reveals that retailers who effectively blend their online and physical store operations are 35% more likely to achieve profitability, with the study emphasizes the importance of omnichannel strategies, convenience, property maintenance, and retailer-driven ESG initiatives.

Preview of ICSC@CANADA Conference 2023: Retail, Technology, and Networking Opportunities in Toronto [Interview]

Craig and Kyle Tomlin, Director of Events in Canada for ICSC, discuss the highly anticipated ICSC@CANADA 2023 conference, set to take place from October 2nd to 4th at the Metro Toronto Convention Centre North Hall in downtown Toronto.

Canadian Grocers Take a Page from Carrefour’s Playbook to Tackle ‘Shrinkflation [Op-Ed]

French supermarket chain Carrefour has labeled products impacted by reduced size, and similar measures may be adopted in Canada to enhance transparency in food pricing, says Sylvain Charlebois.

Jeweller Mejuri Debuts Personalized App and Innovative Membership Program; Plans Expansion with 5 New Stores [Co-Founder Interview]

The popular brand's personalized mobile app and membership program aim to enhance customer engagement and personalization, as Mejuri enters major markets with stores.

Fast-Casual Restaurant Concept MightyBird Opening 1st Location in Toronto in a Partnership [Interviews]

The new concept at Union Station will be the first of many in a partnership between Eat Up Canada and Open Concept Hospitality.

KIT + ACE Launches Store Expansion in Canada Under New Ownership [Interview]

The Vancouver-based retailer will open two locations this fall in Toronto and Calgary, with plans for a substantial expansion into 2024 says CEO David Lui.

Casual Steakhouse Chain MR MIKES Expanding Further in Canada [Interview]

With plans for continued expansion into Western Canada and Ontario, the restaurant chain is evolving its concept and targeting smaller markets to establish itself as a hub for local communities.

Canadian Retail Sales: A Slight Recovery Amidst Economic Challenges [J.C. Williams Group Analysis]

The analysis explores the noteworthy trends in the health and wellness sector, the resilience of certain retail categories, and the impending holiday season's strategic considerations for retailers.

Bloor Street Retail Transformation: Luxury Brands, Renovations, and New Openings in Toronto [Podcast]

Craig and Lee take a deep dive into the dynamic changes occurring on Toronto's Bloor Street West, noting the street's resurgence as a thriving hub for luxury shopping in the city.

Ricardo’s Kandy Korner to Open Flagship Candy Store at CF Toronto Eaton Centre in Toronto [Interview]

Entrepreneur Ricardo Rizaie says he’s planning to take his experiential candy retail concept across Canada after opening a third Canadian storefront in downtown Toronto.

PizzaForno Expands Into Toronto’s Public Transit System, Sets Sights on Airport Locations for Automated 3-Minute Pizzas [Interview]

This innovative move marks PizzaForno's entry into the public transit sector, and demonstrates its commitment to becoming the fastest-growing pizza chain in North America by 2024.

Calgary’s Retail Space Crunch Drives Surge in Rental Rates and Demand [Report]

A variety of complicated factors are at play as Calgary retail space sees demand given market growth, while new supply is limited due to factors such as construction costs.

Lush Cosmetics Sets Ambitious Expansion Plans for Canada Including New Spa Locations, Services, and Entertainment Partnerships [Interview]

The UK-based retailer is innovating with its Canadian operations with enhanced customer experiences and unique treatments, while launching a new app to facilitate bookings and provide more information about products and services.

Canadian Consumers Adjust to Higher Cost of Living [Survey/Video Interview]

An Angus Reid survey asked Canadians how they're navigating elevated inflation, a higher cost of living and a potential recession.

Canadian Shoppers Embrace Generative AI for Shopping Suggestions: Report

The groundbreaking Salesforce report focuses on the growing importance of AI-driven personalization in the retail sector.

Inside the New KITH Store on Yorkville Avenue in Toronto [Photos]

The stunning storefront took months to build, features Kith Treats and a restaurant concept from New York City, and could be a game changer for the Bloor-Yorkville area.