CompUSA:

CompUSA is a retailer and reseller of consumer electronics, technology products and computer services. CompUSA serves consumer retail, small-to-medium businesses, corporate, government, and education customers. Founded in 1984 as Soft Warehouse in Addison, Texas, a northern suburb of Dallas, by Errol Jacobson and Michael Henochowicz,^[1] the company began national expansion in 1985 with its first megastore opening in Atlanta, Georgia. Jacobson and Henochowicz led a team of young managers including Elizabeth Greenwood and Pat Wyckoff who were skilled in retail, distribution, logistics, service and merchandising. The team of four successfully launched megastores in Atlanta, Georgia; Dallas, Texas; Los Angeles, California; Denver, Colorado; Houston, Texas; Detroit, Michigan; and Miami, Florida.

In 1991, under the direction of Chief Executive Officer Nathan P. Morton, the company's name was changed to CompUSA, and the company became publicly traded on the New York Stock Exchange. While under Morton's leadership, CompUSA grew to over $2 billion in revenues. Morton resigned in 1993 after a falling out with the board of directors.

Currently based in Miami, Florida, CompUSA currently operates 17 retail stores in Florida, Texas, Illinois, and Puerto Rico. Eleven former Tiger Direct locations and two locations under construction will be brought under the CompUSA banner in the summer of 2008 for a total of 30 stores.

Until its reorganization, CompUSA, Inc. was a wholly-owned subsidiary of U.S. Commercial Corp S.A.B. de C.V.^[2] and indirectly controlled by a common shareholder, Carlos Slim. On December 7, 2007, an affiliate of liquidation firm Gordon Brothers Group bought the company. Systemax purchased the CompUSA brand, 16 retail locations and other company assets were purchased in January, 2008.

Systemax also operates CompUSA.com, a retail web site that offers an assortment of products, as well as a dedicated catalog site for businesses.

History

The CompUSA Network

In 2005, CompUSA started a customer loyalty program called The CompUSA Network. For every dollar spent at any CompUSA store, the customer received 13 points. Rewards included an Epson photo printer and a Canon Digital Rebel SLR digital camera. However, in June 2006, sales of the CompUSA Network membership cards were suspended pending further investigation onto the operation's effect on customer retention and "program awareness among low-visit customers."

On August 24, 2006, CompUSA announced the end of the Network Reward program. All customers were notified of this and issued coupons for the remaining reward value, as well as their original purchase price. They were also offered a refund of the original purchase price in the original form of payment, however this option removed any remaining reward points.

CompUSA-owned brands

Norwood Micro

Norwood Micro was CompUSA's store brand, which was mostly used to market computer accessories. Like most store brands for large chains, CompUSA did not manufacture its own products but instead contracted with contract manufacturers.[1]

Slogans

Many of the stores still bore the slogan, "The Computer Superstore" at the time of closing. Most of the new Systemax stores also bear this slogan.

Puerto Rico slogans

Closings

On or immediately before February 28, 2007, CompUSA retained the services of Gordon Brothers, a company that specializes in liquidation, for the purposes of closing 126 stores nationwide. ^[11] The closing locations were chosen based upon their overall performance, profitability, and proximity to more successful competitors such as Best Buy, Fry's and Circuit City. This first round of closings reduced the number of stores to less than half of its previous number.

During the liquidation process, the stores typically offered discounts starting at 5 to 30 percent off of retail prices, ending at up to 95 percent. The liquidation process was completed on May 14, 2007. The stores were completely shuttered by the following Friday.

On December 7, 2007, CompUSA was sold to Specialty Equity, an affiliate of Gordon Brothers Group. Gordon Brothers closed the remaining 103 CompUSA stores (including all 3 in Puerto Rico). It sold the company's online and technical services, CompUSA.com and CompUSA TechPro, as well as certain stores in the Florida, Texas, and Puerto Rico markets to Systemax a month later. ^[12]

Systemax purchase

On January 6, 2008, a month after CompUSA was sold to liquidators, Systemax (TigerDirect's parent company) announced their purchase of 16 CompUSA locations as well as the brand, trademarks, and e-commerce business.

TigerDirect also announced that the 11 existing and 3 TigerDirect-branded retail stores under construction will be converted to the CompUSA brand over the spring of 2008, resulting in a total of 30 CompUSA stores by the beginning of summer. ^[13]

As of October 2008, there are 23 US Stores in Florida, Texas, North Carolina and Puerto Rico including the 16 that Systemax purchased, 1 new CompUSA store, and 7 TigerDirect branded stores. http://www.compusa.com/retailstores/compusaStores/index.asp

CompUSA

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