Best Buy Co. is planning capital spending of C$200 million or nearly $160 million over the next 12 to 24 months to build a multi-channel customer experience in Canada.
The latest IT spending is part of Best Buy’s decision to consolidate the Future Shop and Best Buy stores and websites under the Best Buy brand.
As per the strategy announced today, Best Buy is set to eliminate nearly 500 full-time and 1,000 part-time positions and shut down 66 Future Shop locations in Canada. Post restructuring, Best Buy will have presence in 192 locations across Canada, including 136 large-format stores and 56 Best Buy Mobile stores.
Best Buy will utilize $160 million for launching home appliances in all stores; increasing staffing levels to better serve customers; investing in the online shopping experience. Best Buy will be expanding its in-store pick-up areas for online customers. The retail chain will also be launching a ship-from-store program, making in-store inventory available to online customers across the country.
“Currently, 80 per cent of our customers are within a 15 minute drive to a store and this won’t change,” said Ron Wilson, President and COO of Best Buy Canada. “We will continue to have a strong store presence in all major markets in Canada.”