Best Buy Canada and Bell Canada Partnership: 165 New Best Buy Express Stores to Replace The Source

2024-01-19 21:04:14

(Photo: Getty Images)

Best Buy Canada and Bell Canada have announced a partnership that will see the creation of 165 small Best Buy Express stores, and which will, therefore, sound the death knell for the La Source brand in the country.

The agreement will allow Best Buy to expand its reach in Canada, through these 165 locations currently occupied by The Source, a wholly owned subsidiary of Bell Canada.

Currently, The Source has just under 300 branches in Canada, says Bell spokesperson Rachel Jaskula. Other stores that are not transformed into Best Buy Express will close by the end of 2024.

“We are excited to partner with Bell on this unique initiative to expand Best Buy’s presence in new communities across the country. We take great pride in our in-store experience and these modernized, smaller stores will certainly attract new and existing Best Buy customers,” commented Ron Wilson, President of Best Buy Canada.

These new businesses are expected to open their doors during the second quarter of 2024.

In addition to electronic products generally sold in regular Best Buy branches, Bell telecommunications, internet, television and telephone services will be offered exclusively there, in addition to its other brands such as Virgin Mobile and Lucky Mobile. .

“By combining Bell’s award-winning mobile and Internet services in Canada and converting The Source’s extensive retail footprint to Best Buy’s consumer electronics experience, we are offering customers the best of all the worlds when it comes to retail sales of technology and telecommunications products in Canada,” said Blaik Kirby, group president, consumer and SME market, at Bell.

“Everything suggests that Bell will pay for an operating license to rename and operate the Best Buy Express stores. And the staff in these new branches will be Bell employees,” says Adam Adam Shine, analyst at the National Bank.

“We expect more details regarding this transaction on February 8, when Bell reports its results for the fourth and final quarter of its 2023 fiscal year. We estimate that the impact of this transaction on earnings before taxes and depreciation and amortization will be small in 2024, but that it will be necessary to adjust revenue forecasts upwards, considering the low margins in the retail sector,” expresses the analyst.

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