(January 16) Bose Corporation the large audio equipment manufacturer plans to close all its retail stores in North America, Europe, Japan, and Australia. Bose claims its audio products are increasingly bought through e-commerce and other retailers.
The store closures mean hundreds of employees will lose their jobs. Bose, based in Framingham Mass. is privately held and is not saying how many employees will lose their jobs because of the store closures.
Bose
Wikipedia describes Bose as follows: "Bose Corporation (/boʊz/) is a manufacturing company which predominantly sells audio equipment. The company was established by Amar Bose in 1964 and is based in Framingham, Massachusetts. Bose is best known for its home audio systems and speakers, noise-cancelling headphones, professional audio products and automobile sound systems.[3][3][4][5] Bose has a reputation for being particularly protective of its patents, trademarks, and brands. The majority owner of Bose Corporation is the Massachusetts Institute of Technology, which receives cash dividends through the non-voting shares donated by the founder in 2011. According to the company annual report in the 2019 financial year, Bose Corporation received revenue of US$4.0 billion and employed more than 9,000 people.[2]"
History of Bose retail stores
Bose opened its first retail store back in 1993. It currently has locations in many shopping centers and malls throughout the US. The stores showcase the company' products which as well as their famous noise-canceling headphones now includes smart speakers, and sunglasses that also serve as ear-buds.. The company also sets up demo areas in such outlets as Best Buy.
Colette Burke, Bose vice-president of global sales notes: “Originally, our retail stores gave people a way to experience, test, and talk to us about multi-component, CD and DVD-based home entertainment systems. At the time, it was a radical idea, but we focused on what our customers needed, and where they needed it – and we’re doing the same thing now. It’s still difficult, because the decision impacts some of our amazing store teams who make us proud every day. They take care of every person who walks through our doors – whether that’s helping with a problem, giving expert advice, or just letting someone take a break and listen to great music. Over the years, they’ve set the standard for customer service. And everyone at Bose is grateful.”
Stores in Europe, North America, Europe, Australia and Japan will close over the next few months according to the company. In total 119 stores will be closed according to a company spokesman who added: “In other parts of the world, Bose stores will remain open, including approximately 130 stores located in Greater China and the United Arab Emirates; and additional stores in India, Southeast Asia, and South Korea." The company is offering outplacement help and severance pay to employees who are losing their positions.
Many Bose products are now sold through the Amazon, Best Buy, Target, Apple stores or other third-party retailers and even the company's own website.
Other retailers are closing stores
Bose is not alone in closing stores. 2019 saw a big jump in store closings that is likely to continue as e-commerce takes an even larger bite out of the retail market: "If it has seemed like going-out-of-business sales are around every corner, there's a startling reason: Forever 21, Walgreens, Dressbarn, GameStop, Gap and other chains shut down more than 9,300 stores in 2019 — making it the biggest year ever for store closings.That's according to Coresight Research, which says closures jumped about 60% from the 5,844 the firm tracked in 2018. You think that's bad? As online shopping continues to grow, another 75,000 stores could be lost by 2026, says investment bank UBS. "
Previously published in the Digital Journal
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