CompUSA to close more than half their stores; 126 U.S. locations to close within 90 days

Mac Daily News ^ | February 28, 2007

[HAL9000]

Excerpt -

As part of its plan to realign the organization, CompUSA has announced a comprehensive strategy to improve the company's financial status. The realignment includes a cash infusion, store closures, major expense reductions and a corporate restructuring.

As part of CompUSA's realignment strategy, the company will receive a $440 million cash capital infusion. The financial boost will be designated to improve the company's balance sheet.

"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. The process began last week with the closing of four CompUSA stores and over the next 60-90 days, the company will close a total of 126 stores in the United States to focus on initiatives that enhance its top performing locations," said Roman Ross, chief executive officer, CompUSA, in the press release.

CompUSA says these moves will allow the company to focus its efforts and ensure a strong presence in its 103 stores in 39 states and Puerto Rico.

[Tribune7]

ping

[Clay Moore]

Does this mean my Soft Warehouse mouse-pad is going to be a collectors item?

[texas booster]

Along with my Soft Warehouse tie, you betcha! Remember when the Addison fire marshall would make the store shut the doors due to overcrowding?

Scary to think that the name change was 16 years ago, and I still have branded stuff stashed in closets.

There is a real sense of shock at the D/FW stores. Some had just been remodeled, and only Frisco and Plano will be left open.

Looks like they are cleaning house to deliver the company to a new investor. These decisions do not speak well in a retail environment, and only make sense if the company is for sale (at any price).

[OKIEDOC]

Seems like every time I go into Best Buy there always out of those advertised items.

I wanted to buy a Computer for my children and saw one advertised in their mailer.

Drove over to the Best Buy in a busy mall area of our city of 2 million, about 9 miles from me in heavy traffic.

Went in to the computer department.

All the sales kids looked just like that.. Kids.

Well guess what they were sold out of that computer.

I was told that it wasn't a good computer to begin with and that it really needed to be upgraded if my children were out of grade school.

I asked the kid why they were sold out and he said "we only had five of the sale computers to begin with and they were just a come on to get people into the store."

I called for the department manager to complain.

Another kid showed up and was rather flippant about why I should be angry about the sale computer being sold out.

His comment was "next time you will know not to wait till the next day".

I told him that there probably would not be a next time.

PS: My first company computer was a huge 40 mega bites of memory and lots of floppy's.

[beef]

well, there is always tiger direct on Capitol

[7thson]

Why do you consider these losers? Are those PC's sold mostly at compUSA?

[ItsForTheChildren]

There haven't been any good sales at CompUSA since the mid-80s when they were Soft Warehouse.

[7thson]

What is your opinion of TigerDirect?

[HAL9000]

The people who formerly bought their products are closed CompUSA stores will be more likely to consider buying a Dell instead. Since CompUSA didn't sell Dell products, that wasn't an options for those customers before the closures.

Apple does sell at CompUSA - but those customers will go to Apple retail stores or on-line stores instead.

[Howlin]

Thanks, beef; I've only been there once, so do you think they can help a novice like me?

[TheBattman]

PS: My first company computer was a huge 40 mega bites of memory and lots of floppy's.

Hehehe... MY first computer had 16K of memory with the addon on expansion module! Storage was via audio tape recorder!

[DeerfieldObserver]

No one should be happy when a business closes. CompUSA had some incredible promotions, or door busters, that will be missed.

The convenience of having a nearby computer store will be missed. And Best Buy and Circuit City really didn't have all the computer gear that CompUSA does.

I guess they are staying open in Florida, so I am glad of that. Sorry about all the people who will be losing their jobs elsewhere.

[DeerfieldObserver]

I would take an HP computer over a Dell any day of the week. Have you checked out Dell's stock price recently?

[7thson]

There are some BestBuys I like because they have a good music or DVD selection. Other than that, I rarely go in them anymore.

[HAL9000]

Yeah, HP is a better brand than Dell. I think Dell's best days are behind them.

[7thson]

I've done the rebate drill from Circuit City a lot. The first time I got burned because I purchased mulitple items of the same project and then was told I needed all original receipts. After that, I always ask for the correct amount of paperwork. It's somewhat of a hassle but I don't mind it. By the way, I like Circuit City. I am not as tech savy as a lot of you guys/galls out there are and the staff at Circuit City are better than at BestBuy.

[RightField]

Looks like the San Diego stores are closing, too.

[rabidralph]

I remember I was very upset when Egghead closed its stores and went totally online. Their tech people had the best customer service. I won't miss CompUSA. Weird layout, can never find anything and you don't feel like searching, unlike Best Buy where you don't mind getting lost.

[Babu]

Ive never much been impressed with compusa, best buy is really eating their lunch.

Where I live, Fry's Electronics is eating everybody's lunch. Fry's are are always teeming with customers. In my metro area, CompUSA & Best Buy have as many employees as they do customers. I have wondered for a long time, how they stay in business.

I know not every metro area has Fry's Electronics, but those that do are fortunate -- prices are very competitive, and the stores are huge -- selection is great.

[Still Thinking]

Hmm, I guess high prices, ignorant sales people, and a body cavity check on the way out the door isn't the best sales model after all.