Future Shop

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Future Shop

File:Future Shop logo.svg
Company type	Subsidiary
Industry	Retail
Founded	1982 (1982)
Founder	Hassan Khosrowshahi
Defunct	Template:End date and age
Fate	Integrated into Best Buy
Successor	Best Buy
Headquarters	Burnaby, British Columbia, Canada
Area served	Canada United States (until 1999)
Key people	Ron Wilson - President, International Mat Povse - Senior Vice President, Retail & Services Angela Scardillo - Senior Vice President, Marketing & Store Design
Products	Electronics
Parent	Best Buy Canada (2001–2015)
Website	www.bestbuy.ca

Future Shop was a prominent Canadian electronics retail chain established in 1982 by entrepreneur Hassan Khosrowshahi. By the year 1990, it had grown to become the nation’s leading seller of computers and consumer electronic products. As of October 2012, Future Shop operated 149 outlets throughout Canada.

In November 2001, the American electronics retailer Best Buy acquired Future Shop for C$580 million. Although Best Buy initiated the launch of its own branded stores in Canada after the acquisition, it maintained Future Shop as an independent retail chain. Despite many Best Buy outlets opening near existing Future Shop locations, the two brands were distinguished mainly by their distinct in-store customer experiences.

On March 28, 2015, Best Buy declared it would discontinue the Future Shop brand and close 66 stores. The remaining outlets were rebranded as Best Buy locations.

Origins

File:Future Shop.JPG

A Future Shop location in Edmonton, July 2007

The company was launched in 1982 by Hassan Khosrowshahi, an Iranian businessman who emigrated to Vancouver, British Columbia with intentions to create a retail enterprise. Khosrowshahi held degrees in law and economics from the University of Tehran and was connected to the Minoo Industrial Group—an influential Iranian manufacturer of pharmaceuticals, cosmetics, and food products. His vision was to establish a network of consumer and home electronics outlets that would dominate the Canadian market. Ardeshir Ziabakhsh (known as Ardy Zia) was appointed president and CEO at inception, while Khosrowshahi assumed chairman and founder roles. The first three Future Shop stores opened in British Columbia during 1983. Their product lineup included computers, software, video games, videocassettes, audio equipment, music media, and other related items. Within just one month after launching these initial stores in December 1983, sales totaled $2.8 million.

By 1990, Future Shop had expanded to operate 38 locations across Canada as well as selected U.S. regions and had established itself as the country’s top retailer for computers and consumer electronics. In August 1993, the company made its public debut on the Toronto Stock Exchange, raising $30 million aimed at funding further growth initiatives and reducing debt.

By late 1995, annual sales surpassed $1 billion with EBITDA exceeding $38 million.

In 1997, leadership changes occurred when Ziabakhsh departed from his executive role. Khosrowshahi took over as president and CEO alongside his chairman duties. This transition period involved significant layoffs at corporate headquarters.

Concentration on Canadian markets

In 1998, Future Shop acquired the Canadian operations of Computer City from CompUSA, shortly after Computer City had been absorbed into CompUSA and its stores either rebranded as CompUSA or shut down through liquidation. Within the following year, two Computer City outlets were closed due to unsatisfactory sales performance. Meanwhile, the rival Adventure Electronics chain in Ontario and Quebec ceased operations, positioning Future Shop as the sole major big-box electronics retailer across Canada.

By the close of 1998, Future Shop’s U.S. branches were underperforming significantly, having accumulated losses totaling $53 million over several years, with an additional $30 million in losses anticipated by the end of the next year. Facing substantial declines in revenue, the company declared in March 1999 that it would terminate its U.S. business, conducting clearance sales before shutting down during the summer. This move left Future Shop operating 81 stores exclusively within Canada. Many of these former U.S. locations were subsequently absorbed by one of its primary American rivals, the Best Buy chain.

Entering the year 2000, Future Shop managed 83 stores under its own brand alongside five Computer City outlets. In June of that year, plans were announced to launch flagship stores situated in key urban centers: downtown Vancouver, Toronto, and Montreal.

By February 2001, Future Shop revealed intentions to close and liquidate all remaining five Computer City stores due to ongoing poor sales figures. Concurrently, the company attempted but ultimately failed to acquire Chapters, a Canadian bookstore chain, as it could not present a satisfactory offer.

Acquisition by Best Buy and introduction of new retail formats

File:Future Shop (5669653506).jpg

A more modern Future Shop location in Sudbury, Ontario

In March 2001, the American electronics retailer Best Buy purchased Future Shop for CDN$580 million. Following this acquisition, Khosrowshahi stepped down from his role as president; however, other senior executives from Future Shop remained within the company’s leadership structure. Best Buy opted to maintain Future Shop as an independent division post-acquisition, recognizing the established brand’s market value. Nonetheless, beginning in 2002, Best Buy initiated openings of its own stores across Canada as a complementary retail banner.

This dual-brand approach aimed to expand market penetration in Canada by offering consumers distinct shopping experiences; differentiation was chiefly achieved through variations in store layout and promotional tactics. Future Shop continued employing commission-based sales associates and included home appliances in their product mix, whereas Best Buy utilized non-commissioned staff and emphasized interactive displays. These contrasts attracted diverse customer segments: Future Shop’s negotiating-style sales appealed particularly to immigrants from countries where bargaining is customary, while Best Buy’s more relaxed environment tended to draw a higher proportion of female shoppers.

Several Best Buy outlets were positioned either within short driving distances or even on shared premises with existing Future Shop locations. For example, a Best Buy store opened at the Toronto Eaton Centre nearly simultaneously with a new Future Shop established opposite Dundas Square. Although some Best Buy stores cannibalized sales from nearby Future Shop outlets, they generally generated substantial incremental revenue that compensated for any declines at adjacent locations. Overall, this strategy enhanced the parent company’s total market share in those regions while limiting competitor presence. This dual-banner model proved successful prior to the widespread growth of online-only retailers.

In pursuit of broadening its customer appeal, Future Shop trialed a revamped store format at new sites in Vancouver and South Edmonton Common during 2008. These redesigned stores featured an expanded footprint of approximately 53,000 square feet segmented into four primary sections: Work (computers), Play (video games and musical instruments), Living (home appliances and fitness equipment), and On the Go (mobile phones and audio devices). A central area staffed by "connectivity experts" was available to provide tailored technological guidance to shoppers. In December 2011, Future Shop launched its first-ever liquidation outlet located in Greenfield Park, Quebec.

Demise

File:RichmondHillFutureShop3.jpg

A shuttered Future Shop outlet in Richmond Hill as of May 2015

On January 31, 2013, Best Buy Canada revealed plans to close several stores immediately, including eight Future Shop branches, as part of a comprehensive "long-term transformational strategy" aimed at streamlining the company's retail presence nationwide. The initiative also involved reallocating more resources toward enhancing its e-commerce platform to better compete with prominent online retailers like Amazon.com. These shutdowns affected locations in New Westminster, Nanaimo, Victoria, Langford, Surrey, Lachenaie, and Sherbrooke. On January 30, 2014, the company laid off 950 employees across both brands. Further closures occurred throughout 2014 and early 2015, impacting stores in Boucherville, Greenfield Park, Montreal, Ottawa, Regina, Kingston, New Minas, and New Glasgow.

On March 28, 2015, Best Buy Canada declared the immediate discontinuation of Future Shop operations. This resulted in the permanent closure of 66 stores, while the remaining 65 locations underwent a soft relaunch as Best Buy outlets on April 4, 2015—initially retaining Future Shop signage temporarily. Subsequently, these sites were refurbished to align with Best Buy’s branding and store layout.

Best Buy explained that the closures and rebranding efforts aimed to eliminate overlap since many shuttered Future Shop stores were situated near existing Best Buy locations. The consolidation led to the loss of approximately 1,000 part-time and 500 full-time positions. In response, Best Buy Canada committed to investing at least $200 million over two years to expand staffing levels and introduce home appliance sections in all stores. Additionally, Canadian Best Buy outlets pledged to honor all Future Shop warranties and gift cards.

External links

• Official website (accessible via the Internet Archive Wayback Machine)