One of North America's largest computer and electronics retailer for personal, home office, and small business customers is shuttering the bulk of its operations in a bid to keep the company afloat. CompUSA, which launched in 1984 as business-focused technology vendor Soft Warehouse, is dramatically paring back its physical presence. By June the company plans to shed 126 stores across the United States. Despite buying two significant retail technology competitors over the past 8 years and outlasting others, CompUSA still faces significant pressures from online retailers and other electronics megastores such as Best Buy and Circuit City.
The realignment will leave CompUSA with just 103 stores in 40 territories. CompUSA also said it is going to take in a one-time "capital infusion" of $440 million from an unnamed source. The company cited poor performance, aging facilities, and competition among the reasons for the widespread store closings.
The store closure plan mirrors the fate of UK retail chains Dixons and Currys, both owned by DSG International. In 2006 DSG pulled the Dixons brand from the UK high street, turning it into a pure online brand, shutting underperforming stores and rebranding the rest as Currys.digital.
