"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."
http://www.wincustomize.com/
"CompUSA today sounded the Big Retreat, announcing plans to close more than half of its US stores.
The lossmaking PC retailing giant is to restructure at a corporate level and promises 'major expense reductions'. It has a secured a $440m cash injection from an unspecified source to shore up its balance sheet. Post re-org, the company will have 103 stores in 39 states and Puerto Rico.
Quote time, from Roman Ross, CompUSA's boss. '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 [and] focus on initiatives that enhance its top performing locations'"
http://www.channelregister.co.uk/2007/02/28/compus...
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