Winnipeg Free Press - PRINT EDITION

The Source takes on big-box competition with small stores

  • Print

The Source electronics chain will open 20 new stores this year, expecting its small-store strategy with popular products, including cellphones, to attract consumers.

More than half of the new stores will open in Western Canada, the Source president Charles Brown said Friday.

"In spite of the cautious economic forecast, we continue to see strong consumer spending in key categories, things like headphones and mobility and home entertainment," Brown said from Toronto.

"The beauty of our model with the small store is you can go into a fairly small market and have that store be profitable. You don't need a massive market for a 2,000-square-foot store," he said.

Telecom giant BCE Inc. bought the Source in July 2009 to complement its Bell wireless products and services.

"That's starting to be a growing part of our business," Brown said.

The announcement comes a day after major retailers Best Buy Canada and Sears Canada announced layoffs totalling some 1,600, a move analysts blamed on the popularity of online shopping and the shrinking demand for super-sized brick-and-mortar stores.

"We're really accessible -- 70 per cent of Canadians live within five kilometres of a Source store, so we're in your neighbourhood. That fits the trend of where things are going today," Brown said.

The company already has 700 small-box locations across Canada, and says about six per cent of its business comes from online sales.

It also plans on renovating 50 stores, in addition to the new stores, that add to the 67 stores it opened last year, Brown said. Almost 900 full-time and part-time jobs will have been created in the past two years when the 20 new stores open.

Retail analyst Len Kubas of KubasPrimedia Consultants said the Source isn't in direct competition with Best Buy or Sears.

"Most people who go to the Source are probably going to need a sales person to help (them) with what they want," Kubas said from Toronto.

"You go for a little extra service, you go for personal attention, which you may not get to the same degree in a big-box store."

-- The Canadian Press

Republished from the Winnipeg Free Press print edition February 2, 2013 B6

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

Photo Store Gallery

  • A female Mallard duck leads a group of duckings on a morning swim through the reflections in the Assiniboine River at The Forks Monday.     (WAYNE GLOWACKI/WINNIPEG FREE PRESS) Winnipeg Free Press  June 18 2012
  • July 1, 2012 - 120701  -   Canada Day fireworks at The Forks from the Norwood Bridge Sunday, July 1, 2012.    John Woods / Winnipeg Free Press

View More Gallery Photos

Poll

Do you think Judy Wasylycia-Leis will greatly benefit from the endorsement by Winnipeg's firefighters?

View Results

View Related Story

Ads by Google