Shopping Discussion

What's the difference between FutureShop and Best Buy?

  • Last Updated:
  • Mar 29th, 2015 11:33 am
Tags:
None
Deal Guru
User avatar
Nov 2, 2003
14252 posts
580 upvotes
Scarborough

What's the difference between FutureShop and Best Buy?

I'm getting really confused with the dual brand marketing. What's the strategy behind doing this?

It's not like one sells higher end stuff and the other sells lower end stuff like Honda & Acura, Toyota & Lexus.

When BestBuy first came to Canada, it made sense to retain FutureShop for its brand equity as well as not make it seem like an American invasion. But now that it's been around for a while, wouldn't it make more sense to merge the stores...? At least keep the FS name but allow returns from FS at BB?
MOONBOX M3S:Group Buy | User Thread
H.TVBox 3 Group Buy | User Thread
TVPad4 | User Thread

ONE PLUS 3 GRAPHITE VERSION $650 obo

67 replies
Deal Addict
User avatar
Oct 13, 2002
4109 posts
257 upvotes
Toronto
actng wrote:
Jan 9th, 2007 9:07 pm
I'm getting really confused with the dual brand marketing. What's the strategy behind doing this?

It's not like one sells higher end stuff and the other sells lower end stuff like Honda & Acura, Toyota & Lexus.

When BestBuy first came to Canada, it made sense to retain FutureShop for its brand equity as well as not make it seem like an American invasion. But now that it's been around for a while, wouldn't it make more sense to merge the stores...? At least keep the FS name but allow returns from FS at BB?
still many consumers do not know that FS is owned by BB and therefore the same company. It creates "competition" by having 2 retail outlets operating under one umbrella.
'11 DC MLF Iikka Pro
'11 Rome 390 Boss Black
'08 K2 T1
Deal Guru
Dec 10, 2004
10840 posts
804 upvotes
Kanata
ProfessorChaos wrote:
Jan 9th, 2007 9:11 pm
still many consumers do not know that FS is owned by BB and therefore the same company. It creates "competition" by having 2 retail outlets operating under one umbrella.
That, and many hate US companies coming up here so FS looks more appealing since it was CDN.

The other thing is that, they are operating it differently. Some just simply prefer BB to FS. I know my wife hates FS but likes BB when it comes to the service people on the floor. Commission-based problem, maybe?

I think that there may be other reasons why they can't just merge. Could be one of those things where they needed to operate as separate entities or else face something like what happened when Loblaws tried to buy Loeb.
Sr. Member
Nov 10, 2003
677 posts
87 upvotes
Concord
2 competitions under 1 umbrella..

BB is cheaper, u buy there, FS is cheaper you buy there...

you are still buying from one or the other. They win.
Deal Fanatic
Sep 9, 2003
6644 posts
634 upvotes
Burnaby
It was a decision made by senior management when BBY bought out FS in 2001.

Long story short. One is commission, one is non-commission. Together they have far greater market share than FS did when it was all by itself. BBY US has deemed it a success and is now going to bring the dual brand system to China with BBY International and Five Star (Wu Xing).

I should know, I'm typing from within...
[OP]
Deal Guru
User avatar
Nov 2, 2003
14252 posts
580 upvotes
Scarborough
crimsona wrote:
Jan 9th, 2007 9:43 pm
It was a decision made by senior management when BBY bought out FS in 2001.

Long story short. One is commission, one is non-commission. Together they have far greater market share than FS did when it was all by itself. BBY US has deemed it a success and is now going to bring the dual brand system to China with BBY International and Five Star (Wu Xing).

I should know, I'm typing from within...

FS+BB has more market share than FS alone because FS didn't have the resources or capability to grow organically. If FS had the sort of money BB had, I'm sure it would at least come close to the market share of FS+BB today.

Also, if the FS models works so well, why aren't they opening anymore FS? I could be wrong on this point but I swear I read somewhere that any new stores will be BB.


To me, I goto FS/BB based on location. Whichever one is closer and whichever one has what I'm looking for in stock. Or whatever gift card I happen to have at the moment. But that's what drives me nuts. A few weeks ago i went to three futureshops over 2 days before I found what I wanted. All the while the futureshop website shows all three stores had in stock what I wanted. One of those FS didn't even have the SKU loaded when I got there! If only the gift cards worked online.


I just wish I could refund stuff from BB at FS and vice versa. They can keep whatever commission plan they have and brand marketing. I just want the convenience of not having to run around town.
MOONBOX M3S:Group Buy | User Thread
H.TVBox 3 Group Buy | User Thread
TVPad4 | User Thread

ONE PLUS 3 GRAPHITE VERSION $650 obo

Deal Guru
User avatar
Apr 17, 2005
12170 posts
277 upvotes
think of the business that they are in as a WHOLE PIE

think of all thier competitors each getting a piece of the pie.

they are getting two slices
----------------------
References:
My HoFo, eBay, HeaT & RFD Feedback! 100% POSITIVE!
Available upon request.
Rehan wrote:
Nov 13th, 2009 4:04 pm
All of you shut your mouths and leave the OP alone.
[OP]
Deal Guru
User avatar
Nov 2, 2003
14252 posts
580 upvotes
Scarborough
I'd rather they get one LARGE slice than two half slices. It works much better for consumers. Makes their backend accounting more complicated but I don't care.
MOONBOX M3S:Group Buy | User Thread
H.TVBox 3 Group Buy | User Thread
TVPad4 | User Thread

ONE PLUS 3 GRAPHITE VERSION $650 obo

Sr. Member
User avatar
Nov 14, 2003
861 posts
3 upvotes
It's intended to keep other foreign competitors from entering the Canadian Marketplace.

There is a perception that it is a crowded marketplace with two large electronics retailers.

Canadian shoppers don't think there is a need for any more.
Banned
User avatar
May 17, 2006
1783 posts
Not to mention Best Buy doesn't take commission while Future Shop does.
Deal Fanatic
Mar 21, 2002
5722 posts
508 upvotes
The purchase of Future Shop by Best Buy should never have been allowed by the Competition Bureau (a toothless wonder if there ever was - when have they ever said no to any takeover?) since it give one company too much of a monopoly in consumer electronics the small Canadian marketplace. In the same situation US authorities would never have allowed this. Retention of the two store chains with their slightly different products and marketing strategies is a powerful weapon against any new competitors that might want to either start up or enter the market in Canada. Think of what might have happened if BB had not been allowed to buy FS: We would have had two powerful national chains actually competing with each other. And maybe the prices of big screen TVs would be a little bit closer to what we see in the US.
Deal Fanatic
Sep 9, 2003
6644 posts
634 upvotes
Burnaby
actng wrote:
Jan 9th, 2007 10:01 pm
FS+BB has more market share than FS alone because FS didn't have the resources or capability to grow organically. If FS had the sort of money BB had, I'm sure it would at least come close to the market share of FS+BB today.

Also, if the FS models works so well, why aren't they opening anymore FS? I could be wrong on this point but I swear I read somewhere that any new stores will be BB.


To me, I goto FS/BB based on location. Whichever one is closer and whichever one has what I'm looking for in stock. Or whatever gift card I happen to have at the moment. But that's what drives me nuts. A few weeks ago i went to three futureshops over 2 days before I found what I wanted. All the while the futureshop website shows all three stores had in stock what I wanted. One of those FS didn't even have the SKU loaded when I got there! If only the gift cards worked online.


I just wish I could refund stuff from BB at FS and vice versa. They can keep whatever commission plan they have and brand marketing. I just want the convenience of not having to run around town.
FS Niagara Falls opened in October 06, FS Sault St Marie opened in November 06. There are a few more due to open in Fiscal 08 (starts March 07), but Best Buy will get the lion's share of new store openings.

Leadership has determined that there is more to be gained from opening a BBY store near a FS store than opening a 2nd FS (for obvious reasons). Bay & Dundas, Richmond Hill are a few examples of this. For the forseeable future, BBY will grow from the 46 currently and catch up a bit to FS's 121 stores.

Growth in the FS brand was stalling right up to the takeover. Pretty much all the marketshare gains over the last 5 years have been through the Best Buy brand.
[OP]
Deal Guru
User avatar
Nov 2, 2003
14252 posts
580 upvotes
Scarborough
wise wrote:
Jan 10th, 2007 5:59 am
look what happened with Chapters/Indigo. That was even worse!
That is the perfect example to illustrate my point. We didn't need Chapters and Indigo. The merging of Chapters/Indigo meant that it was now more convenient for me to go to EITHER Chapters or Indigo...

It's like TD Bank and Canada Trust. Another awesome merger in my opinion. Suddenly I have a lot more branches to goto.


I'm not buying any of your arguments that FS + BB strategy will prevent foreign competition. Look at Home Depot vs Rona vs 1/2 of CanTire. We still have new comers coming. Rona is still opening new stores (bigger and better stores) and CanTire is still expanding their stores. We also have new comer in 07.
MOONBOX M3S:Group Buy | User Thread
H.TVBox 3 Group Buy | User Thread
TVPad4 | User Thread

ONE PLUS 3 GRAPHITE VERSION $650 obo

× < >

Top