The sudden closure of dozens of Future Shop stores across Canada took many people by surprise. It was announced last Saturday that 66 Future Shop stores would be closing effective immediately, while another 65 stores would be converted into Best Buy stores. The closure of Future Shop will eliminate approximately 500 full-time position and 1,000 part-time positions.
It seems like the sudden closure of big box stores in Canada is not uncommon.
A few weeks ago, a major company in the Elk Valley was closed very suddenly, leaving several workers unemployed. On March 12, the Cat Rental Store in Sparwood officially closed their doors after Finning Canada announced their plans to cut their workforce by 500 people. The sudden closure of the store shocked local residents, as the Cat Rental Store had a vital role in the Sparwood community. Not only were several workers laid off as a result of the sudden closure, but any new business must now be directed to the Calgary branch.
It seems as though big box stores are continuously shutting their doors in order to cut costs. In this past year alone, two major stores closed, laying off thousands of employees.
In January, Target Canada announced it would be closing all its Canadian stores after a failed expansion, leaving nearly 18,000 people out of work. The retail chain opened 133 stores at the beginning in March 2013 but in just two years, the company lost a predicted $2 billion.
While the CEOs of major companies continue to thrive, small communities like Sparwood are devastated when cost cuts result in major store closures. It seems as though job security is a thing of the past. I remember while I was in high school taking economics, the teacher warned us of companies like Walmart taking business from small, family-owned and operated stores. Why go to a hardware store, a grocery store and a clothing store when you can go to Walmart, where everything is amalgamated into one large warehouse type building? But now it seems like even those stores aren’t safe.
Here in the Elk Valley there are several restaurants, grocery stores and other franchises. Although these businesses may be doing well in the valley, as I’m sure the Cat Rental Store was, it’s never certain when a location is going to be closed in order to cut costs for the company as a whole. I believe this is a huge concern, not only in the valley but also throughout Canada.