Sony just revealed that they are shutting their remaining stores in Canada in the next six to eight weeks.
The company has been decreasing the amount of stores in the country over the past year, even closing the one at the Toronto Eaton Centre.
The shutdown will include the following Sony stores: Alberta (3 stores), Ottawa (1 store), Montreal (1 store), Quebec City (1 store), Greater Toronto area (5 stores), and the Greater Vancouver area (3 stores).
As a result of the shutdown, 90 employees will be without jobs for the time-being. The locations that have been abandoned will likely be used by other companies, such as Apple or Samsung. Microsoft has already moved into the Eaton Centre building in Toronto.
Sony products will still be available online, in third-party stores, and through telephone sales.
The closings may be due to recent difficulties Sony has been facing. Sony’s 4K televisions are not selling enough, the VAIO notebook and their desktop series has hit a standstill, and their mobile products are having the same problems as their TVs.
Sony has already announced plans to sell its VAIO business, which may leave up to 5,000 employees laid-off, and is restructuring its TV division.
Sony isn’t the only company leaving Canada. Target announced it was closing its Canadian stores earlier this week.
With two major companies shutting down businesses in Canada, will this give a push for other poorly-performing multi-national corporations to begin pulling out of poorly-performing countries as well?
I feel that it can happen, especially if Sony and Target begin seeing improvements in the bottom line. Others will see the benefit in dropping-out rather than staying in. Only time will tell.
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