A year after emigrating from Iran to Canada in 1981, Hassan Khosrowshahi started Future Shop in Vancouver. By the time it was sold to the USA retail giant Best Buy in 2001 for $580 million, Future Shop had grown into Canada's largest retailer of consumer electronics. Target, Sony, Mexx, Smart Set, Sam's Club, and Jacob are just some of the giant retail companies that could not make it in Canada. The human tragic behind these closures is the loss of jobs. Target alone laid off 17,600 employees. In the words of Phil Otto... "What do mass retail giants all have in common? Besides the fact they are all exiting Canada, they all sell pretty well the same crap at the same prices. The biggest retailers aren't always the smartest, they’re not always the trend setters and they certainly aren't nimble and agile. If you try to beat them at the price game they will out gun you quickly and arrogantly. Small business is the backbone of our economy and the retail cleansing taking place right now, which has way more to do with lack of differentiation than the economic climate, is opening the door for our own local retailers to grow and thrive." I'm linking to Lesley's Signs, Signs.
Perhaps it was better that mister Khosrowshadi kept hold of his shop but at last he had the benefit of $580 million. Same here in the Netherlands, all the big retailers are going down. They don't think anymore but are only shuffling with the stock market.
ReplyDeleteYes those are sad things to see and unfortunately you can see it everywhere worldwide.
ReplyDeleteSupporting local businesses is always a win-win.
ReplyDeleteGreat post. You are so right.
ReplyDeleteYep, the big retailers get way to big, then crumble!
ReplyDeleteScary times indeed for many businesses, Andy!
ReplyDeleteThanks so much for the link to the mural park. I will have to head out there after the PanAm games are over. Although it feels like half of the city has left town during the games - I was on Queen West yesterday and it was relatively quiet.
Here in my town we lost our Hallmark stores- probably too many people doing ecards or like me- I get nice cards at $ General for 50 cents to $1.
ReplyDeleteVery true!
ReplyDeleteArrogance and hubris: a bad combination.
ReplyDeleteSums things up pretty well. Tom The Backroads Traveller
ReplyDeleteDitto EG CameraGirl's comment.
ReplyDeleteMy SIGNS, SIGNS
Sad to see a store like this go out of business. Interesting sign.
ReplyDeleteWhat's tough is that the big guys often push out the small locals. Then if/when they fail everybody loses. Though we have some big retailers our region is small enough that we're not packed with only the biggies.
ReplyDeleteHope the prediction for the rise of local businesses comes to past.
ReplyDeleteSad
ReplyDeleteI don't think we are facing the same phenomenon in the USA. I wonder what is the difference?
ReplyDelete