Electronics retailer The Source says it plans to open 20 new stores across most of Canada this year using its successful “small box” format.
The move comes one day after rival Best Buy Canada said it’s closing 15 of its almost 230 big-box outlets and shifting to smaller stores.
The Source president and chief executive officer Charles Brown said on Friday that its small-box approach has proven itself, with encouraging performance last year, when the retailer opened 67 new locations for a total of more than 700 stores.
“The Source’s ‘small box’ format is really meeting the needs of consumers looking for electronics and mobile products,” he said in a news release.
“The pace of change in the industry is so fast that it can make the buying experience feel complex. Our easy-to-shop store format and team of knowledgeable associates are hitting the mark in providing a very accessible and intimate shopping experience that is resonating with Canadians.”
The Source said it also plans to renovate 50 of its existing stores this year.
“In spite of the cautious economic forecast, we continue to see strong consumer demand in categories like mobility, headphones and home entertainment with strong brands like Apple, Monster, Nikon, Samsung and Sony helping to drive traffic for us,” said Mr. Brown.
The new stores will be located in Western Canada, Ontario, Quebec and Newfoundland and Labrador.
Formerly owned by Radio Shack, The Source was sold to Circuit City Stores Inc. in 2004. Undergoing bankruptcy proceedings, Circuit City sold The Source to Bell Canada in 2009.