CompUSA Closing Up Over 50% of Stores
But now where will I get my overpriced consumer electronics?
Wednesday, February 28, 2007 by Zoomba | Discussion: WinCustomize News
The retail electronics space is about to get a lot less competitive. CompUSA announced yesterday that it is set to close more than half of its US retail locations within the next 3 months, dropping expensive and low-performing locations to focus in on their top performing stores. After closing 126 locations, CompUSA will receive a $440 million cash infusion from an unknown source. This is all part of a major cost-cutting and restructuring effort for the electronics retailer.
This is the latest entry in the company's recent shrinking history, with rumors floating about closing locations as late as last September, and the announcement on Monday that it would be closing two stores in California, one in Texas and on in Illinois.
This comes on the heels of Circuit City announcing earlier this month that 70 of its stores were on the chopping block.
So far, it seems like Best Buy is the only one weathering the current retail storm.
huskerpat
Reply #2 Wednesday, February 28, 2007 2:23 PM
Reply #2 Wednesday, February 28, 2007 2:23 PM
I'm pretty bumbed that we'll be losing our store here in Omaha.
RomanDA
Reply #3 Wednesday, February 28, 2007 3:29 PM
Reply #3 Wednesday, February 28, 2007 3:29 PM
my experience with crapusa has never been all that great. I agree Best-Buy is a lot nicer, but im not sure if they carry as many computer type items.
I think we are going to see a lot of this kind of consolidation in the coming months/years, there are just to many new stores out there. I just got an email today that there is a new Circuit City opening 20 miles from home, along with the other 6 in my area (50 mile range) i think its stupid, too many stores!
It will even out i guess.
I think we are going to see a lot of this kind of consolidation in the coming months/years, there are just to many new stores out there. I just got an email today that there is a new Circuit City opening 20 miles from home, along with the other 6 in my area (50 mile range) i think its stupid, too many stores!
It will even out i guess.
Artiepro
Reply #4 Wednesday, February 28, 2007 5:39 PM
Reply #4 Wednesday, February 28, 2007 5:39 PM
Well they USED to be a great place to shop. I stopped shopping there though when online prices were SIGNIFICANTLY cheaper than theirs. It used to be you could look up a price and they would be close enough that for a little more I could pick up the item at CompUSA right NOW. Then I had a few problems with the rebates...I HATE rebates...so I just stopped going there. I figured they may be in trouble when they added the big screen TV's and console games. I dont really know if people think COMPUSA for those items AND they are still too expensive.
I did make a stop in about 4 months ago to pick up a power supply for an old computer. They did not have one that would fit (the computer store doesnt have a power supply for me..hmmm theres a problem) , but I did pick up a 1gb SD card with a free USB reader after rebate. Well I still havent gotten the rebate because they say the UPC was missing. Cancel me going back anymore. All of the required items WERE in the envelope , in a ziploc bag, paperclipped together. Sorry they said. Well luckily I DID take a picture of the items in the ziploc bag BEFORE I sent it for the rebate! The store did take care of it but that added hassle was enough for me.
I did make a stop in about 4 months ago to pick up a power supply for an old computer. They did not have one that would fit (the computer store doesnt have a power supply for me..hmmm theres a problem) , but I did pick up a 1gb SD card with a free USB reader after rebate. Well I still havent gotten the rebate because they say the UPC was missing. Cancel me going back anymore. All of the required items WERE in the envelope , in a ziploc bag, paperclipped together. Sorry they said. Well luckily I DID take a picture of the items in the ziploc bag BEFORE I sent it for the rebate! The store did take care of it but that added hassle was enough for me.
LittleBearJason
Reply #5 Wednesday, February 28, 2007 9:08 PM
Reply #5 Wednesday, February 28, 2007 9:08 PM
You know whats funny. In the city of Roseville, CA Theres a Frys Electronics opening up in a couple of weeks across the street from CompUSA. You can count on this store going out too....
slagny
Reply #6 Thursday, March 1, 2007 5:14 AM
Reply #6 Thursday, March 1, 2007 5:14 AM
It seems that there are fewer and fewer "Computer" stores as opposed to "Electronics" stores (did you want a washer and dryer to clean your PC with) in order to draw in a more diverse crowd of people to shop(and buy). Probably why Gateway never succeeded in having mainstream stores too. Even Circuit City has started selling their own "Geek Squad"(Fire Dog). I guess we will have to get used to getting our best deals for computers at online stores or ebay. Tis a sad day for PC enthusiasts.
Island Dog
Reply #7 Thursday, March 1, 2007 9:41 AM
Reply #7 Thursday, March 1, 2007 9:41 AM
CompUSA still has a great selection of comptuer stuff, much more than retailers like Best Buy or Circuit City. However, they are still way more expensive than buying from online retailers such as Newegg.
MarkSnyder61
Reply #8 Thursday, March 1, 2007 3:24 PM
Reply #8 Thursday, March 1, 2007 3:24 PM
Yeah, Newegg has it going on and so does Buy.com
Bebi Bulma
Reply #9 Thursday, March 1, 2007 5:44 PM
Not true, the new case I want (the CoolerMaster Mystique) is way cheaper at CompUSA. $99 there compared to $130 at newegg (not including the shipping). But it is annoying that there are so few actual *computer* stores around. BestBuy is crap for that, except printers. I just get all my stuff from newegg anyway.
Reply #9 Thursday, March 1, 2007 5:44 PM
CompUSA still has a great selection of comptuer stuff, much more than retailers like Best Buy or Circuit City. However, they are still way more expensive than buying from online retailers such as Newegg.
Not true, the new case I want (the CoolerMaster Mystique) is way cheaper at CompUSA. $99 there compared to $130 at newegg (not including the shipping). But it is annoying that there are so few actual *computer* stores around. BestBuy is crap for that, except printers. I just get all my stuff from newegg anyway.
Drop125
Reply #10 Friday, March 2, 2007 2:10 PM
Reply #10 Friday, March 2, 2007 2:10 PM
Fry's Electronics is the best place for the hugest selection and rock bottom prices..Dont excpect great customer service, but there prices are sickingly low...
Drop125
Reply #11 Friday, March 2, 2007 2:16 PM
Reply #11 Friday, March 2, 2007 2:16 PM
We have 2 Fry's Electronics in Phoenix Az, they are both larger than walmart and filled to the brim with more mother board choices in stock then you can shake a stick at, at any givin time they have over 75 mother boards to choose from All the major makers of CPUs motherboards and Ram and a huge aile of just video cards.They sell Mac,HP,Toshiba,Fujitsu,Sony,Plus there own brand of PC's, They Got every tv you can imagine, the're TV Area is easily 3 times the size of Best Buys with 3 to 6 AV theater rooms. I got my 55 inch Philips HDTV for 1199 2 years ago when most places couldnt even give you a 42inch for less then 1799...I think well be seeing more of the Fry's Pop up, They're like the Ikea of Home Electronics,DVD's Appliances the whole thing...
callforbrett
Reply #13 Saturday, March 3, 2007 6:30 PM
Reply #13 Saturday, March 3, 2007 6:30 PM
Wow, hearing about this "Fry's" place makes me want one... All that exists here is a Best Buy and some Wal-Mart's, and a few small computer shops. When it comes time to build my new computer, I have to go to 4 or 5 different places to get everything. I would order off the Internet, but I am impatient! 
Sea Hourse
Reply #14 Sunday, March 4, 2007 3:37 AM
Reply #14 Sunday, March 4, 2007 3:37 AM
I'm going to be sorry to see CompUSA go but it's been obvious for a while that they simply can't compete. For uneducated B&M buyers Best Buy is the place to spend your money. It appeals to the people who enjoy being bombarded with pop culture of the lowest denomination. Kind of like Blockbuster, McDs, and the like. They haven't a clue as to what they are buying but it feels good.
CompUSA actually tried to include items geared more towards the geek crowd. However, Frys now has that market with zillions of items for sale. And if price is the main point most people now buy online. NewEgg and retailers like it offer outstanding prices and great selection.
CompUSA actually tried to include items geared more towards the geek crowd. However, Frys now has that market with zillions of items for sale. And if price is the main point most people now buy online. NewEgg and retailers like it offer outstanding prices and great selection.
_TAPPER_
Reply #15 Monday, March 5, 2007 10:08 AM
Me too, Best Buy, while good does not offer the variety of software and parts that comp usa does
Reply #15 Monday, March 5, 2007 10:08 AM
I'm pretty bumbed that we'll be losing our store here in Omaha.
Me too, Best Buy, while good does not offer the variety of software and parts that comp usa does
GraveDigger
Reply #16 Monday, March 5, 2007 5:22 PM
Reply #16 Monday, March 5, 2007 5:22 PM
CompUSA made the same mistake that other retailers have made in the past. Forgetting what your core business was. The addition of DVD players, cameras, widescreen TVs and DVDs took up valuable space from their computer business. They were never going to be able to compete with Circuit City or Best Buy on home electronics, they needed to focus on improving their selection and pricing on the computer products. Especially since the margin on computer equipment was dropping and pricing has become predatory.
Here in Columbus we had an TV & applicance dealer, Sun TV, who had fought off numerous competitors over the years and had established itself as the low-cost market leader. However, when Best Buy and Circuit City moved into the area, Sun tried to put computers, computer desks, and even bedding in their stores. Needless to be said, the endeavor failed and they ended up closing all of their stores throughout the state. Another retailer, Micro Center, tried the home entertainment market by opening a new store, Center Stage, that featured high end media centers, video games and big-screen TVs. That lasted less than half a year.
I don't understand why companies lose their focus - if you are known for a specific thing, you don't make yourself stronger my putting a lot of effort into a market where you can't establish a foothold. Look at Apple, their share of the computer business had dropped for years, but with the development of the iPod, iTunes and their online store, they developed a new marketplace and became the dominant player in the market. Trying to do the "me too" stuff hurt CompUSA and I doubt that they'll ever regain the position that they originally held.
And I have to think their practice of lowing prices through rebates rather than just marking items down hurt their sales as well. I know that I could usually find the same item cheaper at Best Buy or Circuit City NOW or even within a few dollars if I didn't care about not waiting for a rebate check. CompUSA tended to tick me off everytime I had to submit multiple rebates for some piece of hardware or software that they were advertising as being "on sale". And don't even get me started on their holiday sales - standing in line to get something they didn't have in stock or having to submit sales receipts, coupons, UPC codes or manual covers to qualify for a lower price (months later whne I received the rebate check) didn't attact me to choose CompUSA over Best Buy or Circuit City (or even Office Depot or Staples...)
Here in Columbus we had an TV & applicance dealer, Sun TV, who had fought off numerous competitors over the years and had established itself as the low-cost market leader. However, when Best Buy and Circuit City moved into the area, Sun tried to put computers, computer desks, and even bedding in their stores. Needless to be said, the endeavor failed and they ended up closing all of their stores throughout the state. Another retailer, Micro Center, tried the home entertainment market by opening a new store, Center Stage, that featured high end media centers, video games and big-screen TVs. That lasted less than half a year.
I don't understand why companies lose their focus - if you are known for a specific thing, you don't make yourself stronger my putting a lot of effort into a market where you can't establish a foothold. Look at Apple, their share of the computer business had dropped for years, but with the development of the iPod, iTunes and their online store, they developed a new marketplace and became the dominant player in the market. Trying to do the "me too" stuff hurt CompUSA and I doubt that they'll ever regain the position that they originally held.
And I have to think their practice of lowing prices through rebates rather than just marking items down hurt their sales as well. I know that I could usually find the same item cheaper at Best Buy or Circuit City NOW or even within a few dollars if I didn't care about not waiting for a rebate check. CompUSA tended to tick me off everytime I had to submit multiple rebates for some piece of hardware or software that they were advertising as being "on sale". And don't even get me started on their holiday sales - standing in line to get something they didn't have in stock or having to submit sales receipts, coupons, UPC codes or manual covers to qualify for a lower price (months later whne I received the rebate check) didn't attact me to choose CompUSA over Best Buy or Circuit City (or even Office Depot or Staples...)
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Reply #1 Wednesday, February 28, 2007 2:20 PM