Future Shop VS Best Buy

[Oxygen-Supply]

Northland

Why would they open a new Best Buy in the same mall as newer Future Shop?

Future Shop stores operate as a division of Burnaby-based Best Buy Canada Ltd., a wholly-owned subsidiary of Best Buy Co., Inc. (NYSE:BBY).

[Robbob]

Some people hate Futureshop and if given the choice they would go to bestbuy. I know I would if they were side by side.

[Resolute 14]

Part of their strategy. All three Best Buys in Calgary are within five minutes of a Future Shop.

Most comparison shoppers wont even realize they are comparing between the same company, and either way, Best Buy gets your dollar.

[newts]

Originally Posted by mileflames

Northland

Why would they open a new Best Buy in the same mall as newer Future Shop?

Future Shop stores operate as a division of Burnaby-based Best Buy Canada Ltd., a wholly-owned subsidiary of Best Buy Co., Inc. (NYSE:BBY).

Their strategy is probably to develop a "destination" area for buying electronics. They did the same thing at Deerfoot meadows. I would assume that they believe that the more you saturate a particular area, the more reason for electronic consumers to come shop there.

Short term, it's probably a good strategy, but long term I can see competitors like Wal-Mart and Loblaws continuing to diversify their electronic offerings and gradually get closer to matching the selection at BB & FS at a better price. Obviously the result is that BB/FS lose business. Long term, I think this strategy will hurt them as they will be managing too much real estate with not enough consumers.

[c.t.ner]

Originally Posted by mileflames

Northland

Why would they open a new Best Buy in the same mall as newer Future Shop?

Future Shop stores operate as a division of Burnaby-based Best Buy Canada Ltd., a wholly-owned subsidiary of Best Buy Co., Inc. (NYSE:BBY).

Better question why would they build a FutureShop and a Best Buy in the same location. (deerfoot meadows)

I really don't know the business behind it, but the general feeling i get from going to both FutureShop and BestBuy is that BestBuy is trying to run the Futureshop franchise out of business.

The prices in both stores are identitcal, but it seems like they put more effort into the Best Buy franchises. Better salesman, not based on commision, cleaner stores, more stock. Most futureshops (McLeod Trail and Sunridge) just seem to be getting run down and dirty.

[Neeper]

I was interrupted not once, not twice, but 3 times while I was on my cell at Best Buy. I was talking to my sister deciding which ipod to get for my cousin. I had 3 salespeople give me their sales speech while I was TALKING on the phone. I could frickin believe it. Everytime, I said "Can't you see I am on the friggin phone??" Unreal. 3 times...

[I-Hate-Hulse]

I've found BB salesdroids to be the worst. Usually clueless as to the product in question, and far too pestering. Unforuntately, I've found non comission to mean "I don't really care".

I agree the Mcleod Future shop is a dive - they need to expand it, especially parking.

[ricosuave]

they are both the same company - different divisions

[c.t.ner]

I’m not saying either one is really that great. Personally I have found Best Buy a little more appealing in the past year. Seems like every Futureshop I go to is in serious decline. I used to purchase everything from Futureshop, but I’ve been driven away for the past 4 or 5 years.

[O_M_A]

Best Buy acquired Future Shop last year. So at the end of the day, the money is going to the same place.

Best Buy tried some sort of pilot project where they put Best Buy and Future Shop locations in the same mall (or in the same vicinity) and they found that the loss in Future Shop sales were more than made up by the Best Buy Purchases. Or, it was something to that extent anyway.

Hey, I learned something in school. Go figure.

[Bobblehead]

I know they are the same company, but once I was looking for a couple things, and could only find one at Futureshop. So I put the other back (yes, I actually went back to the shelf and replaced it) and went to the Best Buy. The BB didn't have the missing item, but the connector was $1 less. ($3.50 vs $4.50, a pretty fair percentage).

When BB initially bought FS, I read that they were going to try and change the 'niche' of FS to the lower end, but that there would always be product overlap.

[Mr. Ski]

You see a similar market approach with products like laundry detergent, just to name one. Tide, Cheer, Bold, Gain... all P&G products, all roughly the same price (and product for that matter), and all claiming to be 'better' than the others.

The mind set is: If you're going to split sales between five or six brands, four of them might as well be yours; and, it's better to steal sales from yourself than let a competitor do it for you.

[c.t.ner]

Originally Posted by I-Hate-Hulse

I agree the Mcleod Future shop is a dive - they need to expand it, especially parking.

I didn't think a Futureshop could get much worse untill I went to the Sunridge Location. Wow!

[Bertuzzied]

haha. i went to both this weekend to buy my brother a tv for his new condo. We got Futureshop to match Best Buy's price, but then I went to sears last nite and it was $300 cheaper for the tv and $150 cheaper for the stand! hahahahah SEARS beat them! Don't you have to be over 65 to shop there?
Going back to price match at FS tonite. for the 2nd time. Plus they sold me this stupid HDMI cable for $150! and i found the same cable at Mem Express for $35.

[4X4]

Fawk. What drivews me crazy is that they'll have different prices for different things. I went looking for an external HD at teh shawnessy FS and found my rig for 199. I wasn't expecting to pay that much so, like a smart Canadian, I decided to check out the "competition". I cruised over to the deerfoot meadows (which is where i should have gone in the first place) best buy and found the same thing for 129.

What a royal pain in the ass. Even though I'm fully aware that they are the same company, I need to price shop between the two. A lazy shopper would have blown 70 bucks that day and I must admit that I almost did. Who the hell wants to drive to deerfoot meadows from shawnessy to price shop?

[Resolute 14]

Originally Posted by I-Hate-Hulse

I agree the Mcleod Future shop is a dive - they need to expand it, especially parking.

Not gonna happen. I'd be willing to bet they are going to see how much traffic the new BB and FS at Deerfoot Meadows takes away, then probably close the site.

[ken0042]

Originally Posted by 4X4

Who the hell wants to drive to deerfoot meadows from shawnessy to price shop?

Psst........ that's what the Internet is for.

It's not just for porn anymore!

[4X4]

Yeah... I was sure someone would point that out. Thing is that half the time they have the wrong price online, or the thing is out of stock.

Guess I'm one of those guys that wants to see the product I'm buying and see the price tag attached.

[ken0042]

I was meaning more for comparing prices before driving around. I agree I prefer to have it in my hand when I buy rather than doing it online.

One thing I have found with BB and FS, one week one store will have an item on sale, then the next week the other store will have it on sale. Maybe that was the case with your drive.

[4X4]

Yea... You got a good point. Eh, what is annoying now is that I'm in Italy and really need to buy an MP3 player (to get my Jim Rome fix) and I barely speak italian.
I can't really go to an electronics store and start asking questions, so I went to check out the goods on BB and FS to figure out what I need. Their sites are both down right now.
London Drugs' site did the trick, but now I have to go make a (fairly) expensive purchase in another language.
After reading the ipod thread, I'm a little skeptical about buying something if I don't fully understand warranty and return policy.

Guess I shoulda thought of this before I left.