A week after several CompUSA executive assignments were shuffled and four store closures were announced, the electronics retailer made a stunning move: they will close 126 of their remaining 229 stores, or over one-half the chain. The privately-held company said the closures were “aimed at improving the company’s structure, streamlining operations and reducing expenses.” A press release said CompUSA now intends to “focus on maximizing margins in its top performing stores.”
The 126 stores were selected for closure based on, “the need to close and sell stores with low performance or non strategic, old store layouts and locations faced with market saturation.” The company said the closures will occur over the next 60 to 90 days.
CompUSA was the first Apple reseller to feature the store-within-a-store concept, staffed by an Apple-trained expert called an Apple Solution Consultant. The ASCs provided sales support, but left the actual sales transactions to CompUSA employees. Of the stores closing, 58 have ASCs on-staff.
Neither company discloses figures for sales of Apple products at CompUSA stores, so it’s not clear how the closings might affect Apple’s revenues. However, by all accounts CompUSA was never an enthusastic seller of Apple gear, despite the stores having their own Apple section. And CompUSA isn’t Apple’s only product outlet–there are 7,500 points of sale for Macintosh computers, and 40,000 for sales of iPods.
Earlier this month retailer Circuit City announced it would close seven U.S. stores, 62 international stores and one distribution center, drop some product lines, and shuffle some executive assignments.
[List of stores to be closed.]
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{ 3 comments… read them below or add one }
Here in Chicago they are closing ALL area stores. Closest one left is in Rockford, about 90 miles west of Chicago. Seems like a lot of smaller markets were able to retain their stores.
I visited one of the area stores today and employees were saying this is just the beginning of a complete liquidation by the end of the year. I’m inclined to agree – how can they compete? Besides the stores have gone downhill over the past few years. Terrible displays, dimly lit areas and prices that are no better than Best Buy. Top Management should be shot for letting this go. I’ve been shopping there for years and they just destroyed it.
Well, I’m sure Apple will pick up the 2% slack lost from CompUSA via more retail locations.
The last paragraph of the story really goes to show how running a store chain is anything but easy money these days. The fact that Apple are having such success with their own is proof of how different they are from the market as a whole. It helps a lot to be your own supplier of course! But they also win in the crucial matter of attracting customers.
Meanwhile, over here in Edinburgh, Scotland, it’s still another decade as far as computer stores go. We have one big retailer (PC World) with just one store who have had the city-wide monopoly for around a decade since their one half arsed competitor I can remember shut down. A lot of trade actually goes on in the little mom+pop outfits which are smaller than decent sized convenience stores and make their money from the compulsive seasonal visits of the nVidia and ATI brigade. It’s not that people don’t buy computers here like they do in America, but simply that our retailers are a bunch of sleep walkers.
The fact there’s an Apple store coming to my town this year (so I’ve heard) is really going to change the landscape. It’s not only Scotsys (our tiny Apple Specialist) who are going to feel the splash, but quite possibly the whole sector. I mean imagine being able to buy *a computer* on Princes Street! That’s just crazy talk!
I’m looking forward to our catching up with the 1990’s yet alone 2000’s as you can tell.
Bummer for Palm Springs and the Southern California desert. A third of a million people and CompUSA _was_ the closest Apple-Store-Within-A-Store option at 60+ miles away!
Let’s PRAY Apple gets serious about it’s pilot-program with Best Buy and officially announces a partnership with them. I saw the list of CompUSA closings and it’s going to leave a huge void in many major cities… Somebody needs to fill the gap.