Sony will close all 14 of its retail locations in Canada, according to a company statement. The closures will occur within the next six to eight weeks, and will result in 90 layoffs.
The announcement was made on the same day Target revealed that it would close all 133 of its Canadian stores. In the wake of the closures, Sony released a statement to numerous Canadian publications, stating:
“We will redirect all of this business through our national network of Sony retailers, our online store, as well as through our Sony-trained Telesales team. Our network of Sony authorized retailers offer a full range of Sony products and will be supported by our in-store merchandisers and product trainers on an ongoing basis in order to ensure that our past customers have continued access to knowledgeable sales consultants who can support their ongoing Sony electronics needs.”
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Sony estimates that it will lose $2.3 billion during the 2014 fiscal year, which ends March 31, 2015. Much of the company’s struggles have been magnified by its struggling mobile communications business, which reported a $1.6 billion operation loss in October 2014.
In addition to Sony and Target, several other international retailers are exiting the Canadian market, including Dutch fashion retailer Mexx, which is liquidating 95 stores by the end of February 2015. In October 2014, Sears also announced plans to sell most of the stake in its Canadian unit. Sears Holdings Corp. revealed in January 2014 that it would cut 2,200 Canadian employees from its payroll.
