It was announced earlier today that A&B Sound is shutting down its two remaining stores in Vancouver, one located on Seymour Street in Downtown Vancouver and the other located on Southwest Marine Drive. Just three years ago, A&B Sound had 21 locations in Western Canada. It is now down to just five stores, largely due to competition from bigger stores like Best Buy and Wal-Mart. The remaining locations can be found in North Vancouver, Abbotsford, Pitt Meadows, Langford, and Edmonton.
The Langford and North Vancouver locations are new. The key difference with these two locations is that they offer a “smaller footprint” and this is the model that the company will be following going forward. It’s not a decision that most businesses want to face, but A&B Sound had to cut its losses and approach the market in a different way. It simply cannot compete directly against big box electronics retailers.
While your business may be fairly profitable today, there’s no telling what tomorrow will bring. A&B Sound was once a premiere electronics retailer in Western Canada, best known for its legendary Boxing Day sale each year. Moving forward, the company knows that it needs to take on a new direction in order to be profitable and viable. It is fully possible that you may have to face a similar dilemma and situation at some point in your company’s life.
Are you prepared to cut your losses, swallow your ego, and downsize as necessary?
blogadmin
August 12, 2008 2:54 pm
I predicted this awhile ago. A&B sound is a classic example of a company that expanded beyond their expertise.
What was their expertise? It was car stereos. If they had of kept their operations small and focused I am sure they would still be doing well today.
Nick
August 12, 2008 8:23 pm
What about companies like bluefur?
blogadmin
August 12, 2008 8:26 pm
We have focused our business over the last few years down to our expertise and we continue to have excellent growth and retention.
Lee Down
August 19, 2008 7:40 pm
I don’t agree with the final question / statement / implication. Cut your losses? Ya okay, but to throw in the towel? I think not.
As was also stated in the story, taking a new direction is paramount to regaining a new foothold. Getting stuck in a mindset over what you are, what you represent, what you stand for (I’m talking to myself here I realize), and what you market and market to, is a death-trap.
The landscape of the world changes constantly. Somehow, in business and in our neighbourhoods we often times forget this simple fact, expecting things to always remain constant and predictable. We get comfy and secure in our roles, whether real or created. Letting go of that perspective and RE-CREATING is a challenging feat.
The good news in an organization, is that as a team that challenge can be met far more successfully. The burden is shared, the ideas are co-created, and there are more bodies to lean into for support as you muscle through the transition.
So maybe could redefine themselves, departing from the model / role / market they once held, and discover a niche specialization that redefines how, what, and to whom they market? Just maybe, the ability to always be on the move, adapting, growing, changing, and listening to the market can open new doors and windows of opportunity. I say don’t throw in the towel, just trade up, across, or even down if need be.
Keep in the game.