Sears, Best Buy to lay off workers in Canada

Sears Canada and Best Buy Canada are laying off hundreds of workers across the country.

Sears Canada announced Thursday it is laying off 700 workers — the majority from their department stores, while Best Buy Canada said it was closing 15 Best Buy Big Box and Future Shop stores in four provinces.

Sears said 360 people are being laid off from its department stores and about 300 from distribution centres.

The remaining workers are being let go from head office and other support areas.

In a statement, Sears says the move is part of an initiative to restructure its business model.

The job cuts will be across Canada.

Sears Canada has been revamping operations to encourage more customers to return to its stores after years of declining sales, and also to prepare for the entry of numerous U.S. retailers, including discount chain Target.

Earlier this month, Sears had announced it was teaming up with the Aldo Group to design and manufacture footwear lines for their Nevada, Attitude and Jessica brands.

The company has 195 corporate stores, 269 hometown dealer stores, eight home services show rooms and more than 1,500 merchandise pick-up locations.

In a release, Best Buy Canada said it has closed eight Future Shop stores, including three in Ancaster, Barrie and Erin Mills, and seven Best Buy Big Box stores in British Columbia and Quebec.

It didn’t disclose the number of layoffs but 680News reported that store closures will mean between 800 and 900 jobs. The company said terminated employees would be given severance as well as employee assistance programs and career counselling.

“The move was based on an extensive review of Best Buy’s retail footprint in Canada in an effort to reduce unnecessary costs, eliminate redundant operating systems and to optimize its real estate strategy to reflect a changing retail landscape,” Best Buy Canada said.

With files from CityNews.ca