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Wednesday, February 28, 2007

CompUSA Decides to Close 126 Locations!



What is going on? First Circuit City decides to close a mess of locations throughout the United States, now CompUSA. The Tech retailer claims they are closing the 126 locations in order to focus on their top performing locations. Doing this will also create a $440 million dollar cash infusion and allow the company to really rework their image as a top tech retailer.





Now why are these big stores deciding it's worth it to close? I feel if you want to point a finger at anyone or anything aside from the bottom line figures, you have to blame the internet. With websites like slickdeals.com or phatwallet.net that are designed for users to post the best deals and prices on all different types of products, why not take advantage of buying online and not have to leave your house? Now that tech retailer websites have built in product reviews as well as websites like cnet.com that supply in-depth reviews of all sorts of gadgets with links to the best prices on the net, why bother wasting the gas and going to the store when you can have it at your doorstep in 3-5 business days.





Although there is this push to lower costs and bring retails exclusive to the internet, I'm not completely sold on the idea. I feel with all of these new gadgets hitting the market, it is important to have stores like CompUSA to be able to showcase these items and actually get to see the products in person. Even though stores like CompUSA and Circuit City don't have the guaranteed best prices around, they are reasonable and if you have a problem, returns don't involve sending the product back in the mail and then waiting for a refund on your charge.





No matter what happens, I'm interested to see what CompUSA is going to do in restructuring their business plan and whether or not they are going to do something to mimic Amazon and allow the Users to take a greater part in the online retail sector of the company.

Read more at: http://news.com.com/CompUSA+to+close+more+than+half+of+U.S.+stores/2100-1041_3-6162933.html?tag=cd.top

14 Comments:

At 5:48 PM, Blogger lcolliton said...

I definitely agree with you that the internet is putting these types of places out of business. It's just so much easier to purchase products online, I mean, Dell has focused its whole business on selling computers through the internet. That's how we ordered my mom's and we got a good deal. I've only been to CompUSA once with my older brother in Nashua and its located less than a quarter of a mile away from Best Buy and Circuit City, which are right next to each other. When we went in, the place was almost empty but every time you go into Best Buy or Circuit City, they are packed. I think location may also have something to do with it and how close similar retailers are. And I think when it comes to choosing between Best Buy, Circuit City, or CompUSA, they will choose the first two, especially if they are right next to each other.

 
At 11:00 AM, Blogger Lan said...

There is a new type of electronics store like the Apple store, the Sony store, or the Samsung store. Those are the retail stores that focus on offering customers an experience with the products instead of selling the products. I just went to New York and visited a Samsung store in Columbus circle. It is really COOL! I wonder if main stream electronic stores can follow that model. Give consumers an experience, then they can buy online.
Yes, keep an eye on compUSA's actions and let us know what is happening ...
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