Major Canadian retailers Best Buy Canada and Sears Canada announced layoffs totalling some 1,600 on Thursday, a move analysts are blaming on the popularity of online shopping and the shrinking demand for supersized brick-and-mortar stores.
Sears Canada (TSX:SCC) says it's letting go 700 workers across the country in a bid to "right-size" and restructure its business. About 360 jobs will be from its department stores, and another 300 will be from its distribution centres. The remaining will be cuts to head office and other support areas.
Meanwhile, electronics retailer Best Buy also confirmed that it will close eight Future Shop and seven Best Buy big box stores across the country as part of a "transformational plan" to replace them with small concept web and mobile locations over the next two and half years.
The closures will result in 900 job losses, around five per cent of its workforce, according to the company's Canadian head office in Burnaby, B.C.
Retail analyst John Winter says layoffs following the frenzied Christmas shopping season are commonplace.
"February is the cruelest month in retail because you find out how you've done in the holiday season," he said. "It's cyclical."
Read more Business News
- 'All right, good night' last words from jetWorld - 1:13 pm
- Three girls hit walking to schoolKelowna - 9:29 am
- Explosion in New York CityWorld - 11:12 am
- Creating electricity out of organic wasteBusiness - 12:50 pm
|QHR Technologies Inc||1.25||+0.01|
|Anavex Life Sciences||0.45||-0.02|
|Copper Mountain Mining||1.99||-0.04|
|Sunrise Resources Ltd||0.03||-0.005|
|Mission Ready Services||0.29||+0.015|
Big Picture Geopolitical risk remains at the fore; Fluid situation in Ukraine suggests need for vigilance The S&P500 remains close to a record level as better than expected February jobs data in ...
How will you pay for this today? Maybe it’s time to change the way you answer this common checkout question.With more payment options than ever, consumers can find easy ways to save money, simpl...
In the razzle dazzle of Hollywood it is hard to find anyone who stands out from the crowd. The fraternity of Actors, Producers, Directors and various other technical guru’s seem to live in a wo...