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January 10, 2008

CompUSA LIVES!

TigerDirect plans on turning all of their stores (11 current 3 more opening) into CompUSA stores and join them with the 16 they just purchased. They will also keep the CompUSA website up and running. This means CompUSA lives!

Gilbert Fiorention acknowledges that CompUSA was doomed due to high over head (duh) because they insisted on keeping several levels of managers as well as a very heavy internal IT department. With all that overhead, it was very difficult to keep any store profitable. After cutting all the fat, they will have about 30 stores, and be profitable. check out the CNN Article for details.


Still no word on the fate of the Honolulu Stores. It looks like TD is trying to stay in the south east sector of the US, so I doubt they will be buying this store. Although Honolulu is highly profitable, it is a huge risk and involves a lot of extra overhead due to shipping and support requirements so the ROI may not be as good.

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