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.

[L98Fiero]

"It takes forever."

So does sitting on your butt doing nothing while the installation runs. ;-) A C-note to watch a blue progress bar.

[martin_fierro]

512 MB thumb drive, literally the size of your thumb, that she got from Target for $12.99 .

I like Microcenter's deals.

[TommyDale]

Wow! Looks like Raleigh, NC is losing its store.

[texas booster]

There was a FReeper who worked out of the Syracuse store, corporate sales, a couple of years ago.

As an original Soft Warehouse employee, back when CUSA only had one store, it is really sad to see. Atlanta opened and then the growth took off.

Major problem? Too many changes in the retail marketplace, especially in the way back end funds worked. Retail leases beat up the corporate real estate department every day. Consumers became more price aware due to the Internet, and retailers trained them to shop for the lowest price no matter what.

The corporate sales department was unable to retain strong sales people when the commission structure changed every year. CUSA is still a great place to buy if you have a knowledgeable corporate sales rep. They navigate through the store policies to make it work for you, and can source almost anything.

Shame to see it happen. Still, I will be bottom-feeding to grab bargains everywhere I can.

[TheBattman]

Sales-wise - Best Buy (I call it Worst Buy) does beat up CompUSA in sales (of course they are more general merchandise focused). But around here - the Best Buy stores absolutely stink. Horrible customer service (I don't think the word service and Best Buy should be in the same sentence), and poor stock of advertized items is just the beginning.

I have many times been in both stores looking for something - Best Buy would feature lots of blue-shirts running around acting busy, yet never someone to actually help you. If you do find someone - don't expect an accurate or honest answer.

CompUSA has a similar reputation in some markets, while in others they seem to do much better. I for one have rarely had a problem getting accurate help at CompUSAs that I have been in.

Both stores are "rebate whores" - lure you into the store with a low "after rebate" price.

And my daughter has never been run over by a shopping cart in CompUSA...

[ShadowAce]

I'm not really sure that there will be any impact on manufacturers. At least, not a whole lot. With the number of Best Buy stores, Wal-Marts, and Targets out there, plus on-line sites, CompUSA wasn't a real huge player in the market anyway.

[BurbankKarl]

Most places charge $100 for an hour of service....

at least in LA

[Cheburashka]

Go to the link to the story. They have a link to a store locater. If your local store is NOT on the list (as mine was not) it means it is DOOMED! (Doomed! Doomed!) Then watch for the sale.

[TheBattman]

yeah, a colleague came into my office this week and showed me a 512 MB thumb drive, literally the size of your thumb, that she got from Target for $12.99 .

And? I have bought a couple of 1GB thumb drives lately for less than $19... One at CompUSA, the other at Circuit City... Every time I have tried to hit a sale like that at BestBuy they are always conveniently "OUT" of them...

[Publius6961]

BUMP!

[TChad]

The two stores closest to me are closing. I won't miss them. Their staff was not hired for technical competence. They could not answer basic questions about the products they were selling. Their advice was often wrong.

It seemed like they had been employed by McDonalds one week, and CompUSA the next.

"D'you want to add a USB flash drive to that order, mister? I think it's, like, some kind of memory thingie."

[TheBattman]

Interesting if you are correct, and that will show what stores will be open, then the Little Rock, AR store will remain open, while Memphis,TN store is closing...

[Mannaggia l'America]

That's because Compusa decided to go afer the comsumer and turned their backs on small businesses.

That's true, but they also have become less relevent - there were times where you could only find things at Compusa that you can now find at Staples, OfficeMax, etc. or it's cheaper to buy them online from distributors.

They also still haven't abandoned the silly "after rebate" marketing.

I also think they still charge a restocking fee on returns. Several years ago I remember buying a tape drive there for a customer. I tried to install it but realized it was not going to fit, so I took it back literally one hour after I bought it and they wanted to charge me a restocking fee of 15%. After that, they became my "last resort".

[Halgr]

I buy all my computer stuff at Newegg.com

What I like about it is the warranty and each component get reviewed by the buyers....so you know what you are getting.

I've built three PC's with Newegg.com parts ;-)

[ExSES]

The two stores closest to me are closing. I won't miss them.

Hopefully, there will be some deep discounting of remaining stock (as is usually the case..., the less they have to inventory/pack and ship, the better off they are)!

[The South Texan]

Never been impressed with CompUSA. Seems like everytime I've been there, the wait staff acts like I'm wasting their time. Nevermind a couple of times I did spend a couple hundred bucks on back up tape drives and tapes.

I just by that stuff now at officedepot.com.

[texas booster]

Four stores were closed two weeks ago, including the Mesquite store in the D/FW area.

Any stores that were informed today that they will close have 60 to 90 days before the padlocks arrive. Auctions should take place in May.

Most of the really good sales folks will land somewhere else before final liquidation. Call 'em if you need someone.

Be on the lookout for pallets of CUSA gear at a sidewalk sale near you about June.

[Afronaut]

In 2000:

Struggling computer retailer CompUSA today received a new lease on life when Mexican conglomerate Grupo Sanborns announced it would buy the chain for approximately $798 million.

The deal, which was proposed on Friday by Sanborns and completed early this morning, is being viewed positively by analysts. A key reason is that Sanborn's chief investor--Carlos Slim Helu--is one of Latin America's most influential business figures. In addition, Grupo Sanborns already has an understanding of CompUSA through a 14.8 percent interest acquired last year.

[TheBattman]

Several years ago I remember buying a tape drive there for a customer. I tried to install it but realized it was not going to fit, so I took it back literally one hour after I bought it and they wanted to charge me a restocking fee of 15%. After that, they became my "last resort".

So, was the package opened? If so, it legally could not be resold as "new". It is now an open-box item, which comes with a reduced price.

The reason I ask - their store policy is that they will take returns for full refund of purchase price within a set number of days if the package is UNOPENED. Opened packages, and returns after a certain time frame cost a restocking fee. This is a pretty common practice - and seems pretty justifiable.

[rabscuttle385]

MicroCenter in Fairfax if I really need something right then and there, otherwise Newegg (mostly), ZipZoomFly (sometimes), or eBay (if it's something no longer in stores).