CompUSA To Close 126 Stores
Today, Dallas-based CompUSA announced that it plans to close 126 stores of the 229 remaining (leaving 103 remaining). Originally, that number was thought to be 100. But with a number of other locations underperforming, that number was increased. According to the press release
Based on changing conditions in the consumer retail electronics market, the company identified the need to close and sell stores with low performance or non strategic, old store layouts and locations faced with market saturation
Back in August of 2006, the company closed 15 stores and implemented expanded home theatre selections in various West Coast stores and in Orlando.
In my own assessment, particularly with response to adding a new niche, why on earth would you begin selling home theatre products? That might warrant a namechange so as not to suggest “computers only”. Perhaps the problem from the beginning was lack of attention paid to the competition, which has surpassed CompUSA by a tremendous amount. Best Buy, Circuit City and even WalMart have gained notoriety in the computer and peripherals niche of which CompUSA once occupied a large portion. In 1997, CompUSA played a respectable role in helping Apple bolster sales of its products. But with Apple stores opening all over, fewer consumers even consider CompUSA for Apple products. In fact, online retailers such as Amazon.com sell Apple products. Four of the Top 25 Electronics sold on Amazon.com are Apple products.
Perhaps CompUSA should consider adopting an exclusively online business plan. Either way, the company faces fierce competition — Amazon.com, TigerDirect.com, NewEgg.com, and Buy.com…just to name a few.
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February 28th, 2007 at 8:30 pm
Unfortunately, the one where I live is closing down
Best Buy is going to get many more customers now
March 2nd, 2007 at 8:18 am
I guess the moral of the story is that if you slack in competition, be prepared to be kicked out, real soon as well. In fact, many people would rather go directly to the producers (online), where they can get better technical support, discounts and so on than from a third party.