News in the retail technology storefront business is not good these days. Two recent big announcements shook up the retail world as both Circuit City and CompUSA announced that they are closing several of their stores.
CompUSA is going to close over half of its stores nationwide. 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 currently operates 225 stores, which its Web site says are located in the United States and Puerto Rico. It also says that it wants to focus its business on the high volume stores, which are remaining open. CompuUSA is owned by Mexican billionaire Carlos Slim, the third richest man in the world.
Meanwhile, Circuit City announced it is closing about 70 stores, most of them in Canada. The retailer, which lags behind rival Best Buy, is restructuring after facing intense gross margin pressure in the flat panel television category in the third quarter.
The nearest CompUSA for us is in Spokane, and I don't know if it is marked for closure. I enjoy browsing there when I am in Spokane and I hope it doesn't close. I also bought a couple of sale items at Thanksgiving in their store in Salt Lake City, which is a very nice store. I am assuming that none of our Washington-based Circuit City stores are going to close, but I don't have any way of knowing for sure.
No comments:
Post a Comment