Bell Canada wants to reach more young people and tech-savvy consumers with its newly acquired The Source electronics stores that will sell Virgin Mobile phones and offer services like the Internet.
Bell is trying to fill in gaps in key geographic areas with its purchase of The Source stores and take on existing and new competitors in the wireless industry and in other areas such as home phones.
“The idea is to make it super convenient for people to actually buy those products and services,” said Wade Oosterman, president of Bell Mobility.
The company recently wrapped up the purchase of the retailer and finished acquiring the half-interest that it did not already own in Virgin Mobile Canada.
The two deals are worth $277 million combined. Bell paid $142 million for Virgin Mobile Canada and $135 million for The Source.
The 750 The Source stores are being renovated and will carry Virgin mobile phones in January 2010, said Oosterman.
“Virgin has a particularly fine focus on youth… and The Source will give additional reasons for youth to come and visit coming January 2010.”
Analyst Carmi Levy said The Source needs to change its image to attract more young people and should set a goal to do so within two years.
“It’s still very much perceived as the store of the pocket-protector wearing set,” said Levy, senior vice-president at Toronto-based AR Communications Inc.
“It has to be seen as the store that any teenager wouldn’t be mortified to go into.”
But Oosterman said tech-savvy consumers of all ages can buy electronics and will get “proper support at these stores.”
The Source president and CEO Ron Cuthbertson said almost 70% of the chain’s Canadian stores are located in shopping malls.
“The Source is well positioned to serve youth consumers—those under 25—who most often frequent shopping centres,” he said.
The Source will continue to offer products that interest young consumers such as laptops, netbook computers, cameras and music players, Cuthbertson said.
Bell has said that Robert Blumenthal will become Virgin Mobile Canada’s new president, replacing Andrew Black who has headed Virgin Mobile Canada since it started in 2004.
