The computer and consumer electronics chain CompUSA will be closing 126 stores:
NEW YORK—CompUSA, the computer and gadget retailer owned by Mexican billionaire Carlos Slim, said Tuesday it would close more than half of its U.S. retail locations over the next two to three months to focus on top performing locations.
CompUSA said in a statement it would close 126 of its stores and would receive a $440 million cash capital infusion, but it was not specific as to the source of the cash. The company also said it would cut costs and restructure.
The company operates 225 stores, which its Web site says are located in the United States and Puerto Rico.
“Based on changing conditions in the consumer retail electronics markets, the company identified the need to close and sell stores with low performance or nonstrategic, old store layouts and locations faced with market saturation,” Roman Ross, chief executive officer of CompUSA, said in the statement.
“The process began last week with the closing of four CompUSA stores and over the next 60 to 90 days, the company will close a total of 126 stores in the United States to focus on initiative that enhance its top performing locations.”
Monday, CompUSA said it would close two stores in California, one in Texas and one in Illinois. CompUSA said it was trying to streamline operations and bolster margins at top-performing stores.
The store in Illinois that’s closing is right around the corner from me and has been a frequent stop for consumables and odds and ends. It’s not likely that I’ll take my business to a more distant CompUSA location. Far more likely that I’ll do more buying over the Internet.
I’d certainly be interested in knowing where CompUSA’s “top performing locations†were. Frankly, I think it’s a euphemism. Computers and consumer electronics, generally, is getting harder and harder to make money in. Margins are very tight and customers are shopping price.
