750 of The Source Stores to pitch Virgin Mobile. Bell HD, phone and Bell Mobility exclusively

BCE purchases The Source and Virgin Mobile

From CBC updated July 4, 2009

Bell Canada just spent $277 million to buy The Source and take 100% ownership in Virgin Mobile Canada.

The Source was originally Radio Shack, a decades old franchise of small electronics stores was started in 1921 as an electronics hobbyist store. In 1986, the owner Tandy Corp. set up InterTan (International Tandy Corp) in Barrie Ontario. Correction – InterTan previously ran Rogers Plus telecommunications stories under license from Rogers Communications. Rogers Communications merged Rogers Plus with Rogers Video in 2007 and took control back from Inter-Tan. It fell under Circuit City ownership and when Circuit City went into bankruptcy drifted until Bell purchased it.

The chain has largely been reduced to a 750 high traffic but third rate stores in major malls. Long out-classed by Future Shop and its parent Best Buy, The Source seems headed again to be an one-trick pony for Bell. It’s hard to say how Bell will manage the combination of Dollar Store and name brand merchandise at the Source.

Will we still be able to buy resisters, capacitors and wire retail in Canada or is that out the window? Sales of hobbyist electronics is probably a dying trade but it sure is handy on a Friday night when a project runs out of a needed part.

“They have announced their intention sell Bell and Virgin wireless systems exclusively which will help to move their brands in the competitive wireless space.

Bell also announced Thursday that The Source will sell Bell and Virgin Mobile wireless products exclusively starting in January 2010. It already sells the high-definition television service Bell TV and will offer other services, such as Bell home phone and Bell internet, in the coming months.

“With its approximately 750 high-traffic locations from coast to coast and clear track record of success in consumer retail, acquiring The Source is a far faster and more cost-effective approach to increasing Bell’s national distribution footprint than building out new retail locations,” said George Cope, CEO of Bell and parent company BCE Inc.

The Source will operate independently from Bell and will maintain its well-known national brand and its own executive team, including CEO Ron Cuthbertson, the company said.

Bell also announced the appointment of Robert Blumenthal as president of Virgin Mobile Canada. He replaces the departing Andrew Black, who led the company since its launch in 2004.” CBC