CompUSA to shut more than half its U.S. stores
After closing down its 46 "The Good Guys" stores late last year, CompUSA has announced that it intends to shut down 126 of its own U.S. retail stores over the next two to three months. CompUSA currently has 225 stores in the U.S. and Puerto Rico, so the operation will cut its presence by more than half, leaving it with a comparatively paltry 99 stores. To justify the move, CompUSA CEO Roman Ross stated, "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." The company intends to cut costs, restructure, and focus on increasing margins at its top-performing locations.
According to a PC Magazine report posted on Yahoo News, the move is largely a result of margin pressure in sectors like the flat panel TV market. Other store chains are also victim of shrinking margins; earlier this month, Circuit City announced that it would close down 70 stores in Canada and the U.S. Thanks to TR reader Eric for the tip.