55 replies to this topic

[Bernard]

I am not surprised in the least. From 1980 to 1996 I spent about $500 a year at A and B. This dropped off as I moved to Lillooet and had kids.

In the last years I have not bought CDs for the same reason a lot of us stopped buying them - we have MP3 players.

For years A&B caused Vancouver record, and later CD, prices to be 33% lower than elsewhere. The family shrewdly got out of the market at the right time.

One reason they could compete so well is that they kept their overheads very low. When A&B was a private family company they had no debts and paid no rent. The bought each and every building outright with retained earnings. This is also why the company only expanded slowly.

[G-Man]

I buy CD's and put them on my MP3 players, I can't be the only one...

[gumgum]

^You also use clocktowers as a means of keeping track of time, so there you go.

[G-Man]

Tru enough.

[sebberry]

I think that a lot of consumers have been brainwashed into believing that the big box stores like Future Shop have better prices all the time. I work at a small computer shop in Langford and I regularly get customers who come in thinking that they will always get a better deal at Future Shop. In many cases I can match FS prices unless they have a sale where they are selling goods below cost.

A&B Sound never really had the buying power that allowed them to employ the same underhanded techniques that the major retailers use, and this hurts the bottom line.

As for mainstream/specialy products, I am seeing more consumers looking for more features and value than pure quality. Yes there are specialty stores that are doing well, but it is going to take a lot to get a regular Sound Hounds customer to buy the same product at A&B.

IIRC, A&B used to sell some fairly high-end products and slowly became more mainstream. Most things that A&B carried, Future Shop carried too. Perhaps under a rebranded model name for big box, but it was there.

I don't blame big box solely for A&B's demise, however the same mentality that allows more Future Shops, Best Buys, Mega Wal-marts, etc... to come into our communities also allows homegrown Canadian retailers to struggle.

It's going to be interesting to see how Madman Mckay will do at their new location in Colwood.

[VicHockeyFan]

I think that a lot of consumers have been brainwashed into believing that the big box stores like Future Shop have better prices all the time...

I agree, but that is advertising for you. Home Depot is the KING of that brainwashing. I bet I can find every product they sell for less money elsewhere, but I'd have to go to a few stores. But on a major project I could save you thousands.

It's going to be interesting to see how Madman Mckay will do at their new location in Colwood.

Ya, that caught me by surprise, they had an outlet here in the 80's, in that lousy little mall with offices above, just north of The Keg on Quadra, then opened a few stores up-Island, then retreated to their up-Island stores for 20-something years.

[Phil McAvity]

yeah, I bought some nice stereo equipment from Madman McKay in the '80's for cheap so I hope they do well again.

[VicHockeyFan]

Best Buy filing for creditor protection in the US on Monday, are they not the parent of Future Shop here?

[mat]

Best Buy filing for creditor protection in the US on Monday, are they not the parent of Future Shop here?

VHF - do you have a link on that? They posted a new 2009 forecast but the very latest news (AP - and the analysis has only dropped from strong buy to buy) is a strong drop in sales, not a bankruptcy.

[mat]

After a very quick moderator discussion a new VV section for retail has been established - which is why certain threads, like this one, have been moved.

[Ms. B. Havin]

VHF - do you have a link on that? They posted a new 2009 forecast but the very latest news (AP - and the analysis has only dropped from strong buy to buy) is a strong drop in sales, not a bankruptcy.

It was Circuit City that filed for bankruptcy on Monday, while Best Buy was upgraded because of it.

PS: No, wait, edit! Best Buy is also in trouble. But not yet bankrupt, right?

[mat]

It was Circuit City that filed for bankruptcy on Monday, while Best Buy was upgraded because of it.

PS: No, wait, edit! Best Buy is also in trouble. But not yet bankrupt, right?

LOL - who knows!! 2 days ago Best Buy was one of the few retailers that had a 'strong buy' on its stock, even with expected year on year even or down profits. 12 hours ago they were down graded to 'strong', with losses estimated at $150 million. If black friday is as bad as some fear then Best Buy may just seek creditor protection -

[Caramia]

Jesus, I almost took a job as "community manager" for their forums. Now I feel like maybe I dodged a bullet. If they get into trouble that guy will be front line to the pitchforks and torches.

[D.L.]

saw that coming

[Audrey]

Anyone know what's going in the old A&B Sound building? I can see the roof from my desk, and it's always crawling with workmen. They're gutting the inside completely, too.

[sebberry]

Speaking of A&B Sound, it looks like their remaining stores will be gone too http://absound.ca/

[Jason-L]

I'm hearing rumors that Future Shop may close up after Christmas... anyone else hearing this?

[VicHockeyFan]

I'm hearing rumors that Future Shop may close up after Christmas... anyone else hearing this?

http://money.canoe.c...7527236-cp.html

TORONTO - Both Future Ltd. and Best Buy Canada Ltd. issued statements early today stating viral emails being circulated about the companies are false.

Future Shop says an email making the rounds states that the retail chain is closing and that its gift cards are not valid.

In fact, says Burnaby, B.C.-based Future Shop, the chain is growing and prospering with over 137 stores to date and its gift cards never expire.

The false email also says Future is owned by Circuit City, which filed for bankruptcy protection earlier this month.

Best Buy Canada Ltd. says emails declaring that its gift cards are not valid and that the company is owned by Circuit City are also false.

[mat]

I'm hearing rumors that Future Shop may close up after Christmas... anyone else hearing this?

All indications are that Future Shop has enough cash reserves to see it through 2009, with an expected 15% drop in revenue.

marketplace.ca is a good source for retail info.