CompUSA 2.0

Though presumed to be dead since it went bankrupt more than a year ago, CompUSA is showing signs of life.

As Wired noted in a post Thursday, there are 30 new retail outlets bearing the CompUSA name in the U.S. that are trying a new retail strategy that includes computers available for customers to do price matching on the Web sites of CompUSA's competitors.

Gilbert Fiorentino, chief executive of the Technology Products Group at Systemax, the company that bought CompUSA, told Wired: "We have invented this idea of retail 2.0...Every screen in every CompUSA store is now connected to the Internet and making buying a richer experience for customers."

While it's unclear whether it's going to be successful, it can't be any worse than its previous strategy, which found the once venerable electronics retailer in bankruptcyin December 2007.

At the time, the company was struggling with competition from rivals Best Buy and Circuit City, but Circuit City met a similar fate right before last year's big holiday shopping season and was forced to file for bankruptcy protection. (Earlier this year, the retailer shut its doors.) Circuit City's fall was due to pressure from online retail outlets like Amazon.com and NewEgg.com, but also the sudden economic collapse and resulting credit crunch. Don't look for Circuit City 2.0 though. It's clear to most retailers, including apparently CompUSA, that the future of retail electronics is focused in the direction of the Web.

[jag0]

CompUSA 2.0...or as a friend of mine put it: "bankruptcy 2.0"

...and the vast majority of CompUSA's closure was the result of internet competition & their inability even try and compete against them. It's too little, too late now.

Um, is the author familiar at all with Systemax? Systemax = TigerDirect. They do the EXACT SAME thing in TigerDirect stores. Same store, even the same website, just another brand.

[1966ronin1966]

To clarify even further, Tigerdirect Retails stores located in Miami have been rebranded to CompUSA stores.

[JamesArsht]

Not true. The original TigerDirect brick and mortars in Miami are still TigerDirect. A few of the CompUSA stores in Miami are still CompUSA. They own both brand names and, for now at least, still have both brands running in the Miami market.

INSIDE, however, they're exactly the same stores.

[jtfan2004]

The TigerDirect store I visit on South Dixie Highway in Miami is still TigerDirect. Compared to the CompUSA we used to have here in Melbourne, it's not all that big.

And you can't beat the warm and fuzzy feeling one gets from being eyeballed by that security guard like you're some kind of crook, but then it *is* Miami afterall...

[jkaufman101]

I love this part: "We have invented this idea of retail 2.0...Every screen in every CompUSA store is now connected to the Internet and making buying a richer experience for customers."

What a novel idea to connect their computers to the Internet. Why didn't I think of that.

[Orion Blastar]

Watch as those computers get junked up with malware as customers surf porno sites instead of surfing for computer parts. I hope they set their proxy server to block the porno and malware sites.

[powersville21]

Al Gore beat you to it.

[rohneas]

Does that mean that the CompUSA stores are going to have better service, prices, and maybe some identity? Not only was CompUSA not even trying to compete with the online stores, they couldn't figure out if they wanted to be Best Buy or Micro Center. They couldn't compete with either- both Best Buy and Micro Center have better prices, service, and selection.

[JCPayne]

The only instace I can think of where a large company went away and came back a much better succes was ValueJet which came back as AirTran.

[ryanmicj]

How about Newegg.com? They seem to be doing well.

And while AirTran might be doing well, I'll never fly them after reading accounts of the shoddy maintenance while they were ValueJet.

[richardarchitect]

lol, everyone raise your hand that goes to a brick and mortar store to buy a computer. Oh, there's one idiot sitting in the back. Why on earth would I subject myself to being pressured by a salesperson who lies to me, when I can sit at home and take my time to fully review the specs and make an informed decision at my leisure.

[jtfan2004]

I've dealt with salespeople at (the old) CompUSA that were knowledgable and honest (seriously). But I also knew them personally, so perhaps they were only that way with me..lol. But you are right, it is a lot easier when you can take your time. And it's a lot more fun when you can build the computer to the specs that are on your own wishlist. TigerDirect is good for that. So is CDW.

[Angmarr]

they better use a different name!

[Orion Blastar]

CompUSA bought out Computer City. Computer City was a nice store to shop at, they had their own brand of floppy disks that were cheaper than name brands and this was before USB flash drives and CD-Rs caught on. The only thing bad about Computer City was the rebates they took too long to get and sometimes we didn't get them, and after CompUSA bought them out all Computer City rebates went into a black hole or something.

CompUSA 1.0 made the following mistakes:
#1 Took too much stock in Windows Vista upgrade CDs, turns out it was hard to upgrade to Vista and most of the time the upgrade ruined the computer even if the staff tried to do it.

#2 Took on too much picture tube monitors and did not catch on to the LCD screen craze.

#3 Sales didn't mention that the final price was after a rebate, but did list an asterisk by the price with fine print on the bottom of the ad that mentioned after rebate. CompUSA 2.0 ought to have "$XXX.XX after $XX.XX rebate" in the ad in larger print.

#4 Technical support was not that well trained, when I ran my small business that did tech support I always had to fix the problems caused by the big stores that mostly hired teenagers at minimum wage that used boot CDs to try and fix problems, but sometimes caused more problems than they solved. Also they would reformat a PC without backing up data and didn't even bother to tell the customer that reformatting the computer will delete all of their data files as well. They should have asked the customer if they want the data backed up to CD-R or DVD-R drivers before they reformat the hard drive, and the cost of the backup would be $XX.XX or whatever.

#5 Prices were usually too high even with sales. It was always cheaper to buy from Tiger Direct, Newegg, Computer Geeks, or some other web site plus shipping than buy from CompUSA 1.0 while the product was on sale.

[bigbear639]

The CompUSA Brand of Floppies, CD's and DVD were indded cheap. So cheap they never worked. Like a fool I bought about 6 boxes of each and they became Coasters and something to scare the Birds away. Their Batteries and other CompUSA Brands were equally poor quality.

Their Warrantees were useless as they were not honored. Their Rebates were never sent out. That their Sales Staff was`knowledgeable was a joke. As a Tech I knew when the BS became deep. They would feed me all kind of unthruth. With the exception of one Female Sales Clerk they were`all Idiots. She was` honest and steered me to several other sites where I could get better deals. The sites were various Stores and Vendors, she wasn't getting any kickback for doing that.

I and a few Friends danced in the Street when the Company Folded.

[sleeplesson]

I agree with most of these except 4 and would add one more. I supposed it's possible that other stores had different experience but I know the store I worked at at the time had 2 full fledged Apple Certified techs, one who was certified for just about every brand but Apple and 2-3 who were in various states of certifications with various vendors.

Also regarding backups I personally would let people know every time they checked in a system that their data was not guaranteed once it was checked in and they should have a backup either one they made themselves or have us do it for $X.xx. Why not wait until you're sure you need to do a backup before asking the customer you ask? When you have 100 systems coming through the door a week you don't have the time or the storage space to let a system sit around for 2 weeks while you try to get a firm yes or no out of a customer that hasn't already decided if they want one.

I would also add that the company lost it's focus and tried to be more like Best Buy by having a home theater section. They should have focused on what they did well and stuck with it. Computers and computer parts. They started going back to that stock near the end with the higher quality memory/motherboards/etc but it was too little too late by then.

[J.G.]

Tiger Direct's brand has a better image than CompUSA's did, so I think the stores should use the Tiger Direct name. But, maybe people who are not veteran Internet shoppers don't recognize it.

[jfrdricks2009]

How would making every screen connected to the internet a more enjoyable shopping experience? UH fail!

[jtfan2004]

True. My screens at home are connected to the internet too and my shopping experience is fairly enjoyable since I don't need to drive the sixty miles to their Orlando store to do what I do now at home.

[Chapmaniac]

I used to work at CompUSA. Salespeople were *required* to sell an AOL account at least once a week to someone. You want *that* kind of mentality back?

[Darkshear]

As a current CompUSA employee and a pre-bankruptcy employee, I can vouch that there have been serious positive changes in the way the company does business. The new CompUSA retail floor is a thousand times better than the old, being that the prices are identical to what you see on TigerDirect.com, better stock levels, more honest advertisements, and much more enthusiast-oriented products. Our stores are able to compete with the major online retailers. The company does not consider Best Buy and other local market retail stores as direct competitors. Anyone that has actually been in the place in the last year has seen the major changes.

However, unfortunately, this new company has taken the philosophy with our hurting economy and job market to "work everyone to death and under the threat of termination; stress and pressure motivate". All of the management staff is required to work a minimum of 60 hours a week. These individuals are only paid for 40. And with recent decreases in 401k and health care, salaried management employees make less per hour than I do, as a sales person. And, as a sales person, I am now given quotas I must land. Quotas that, if I could make such a ridiculous number, I would be employed by a major German car company, not a computer store. The companies? CEO recently did an interview with CNNFN, however the interview never made it to the air as Gilbert Fiorentino made no effort to ensure the company?s interest in helping his employees through the difficult times, only showing that he was taking the opportunity to cherry pick and push people as hard as possible until they pop. Turnover has doubled as a result of this. The companies? second in charge, Terry Perrin, has the grace of a 13 year old after losing a game of Monopoly. He's considered widely by the staff as the companies? most evil dictator. I wish I could say it's limited to one store, however as I have worked in 4 since our re-open, I'm sad to report that it's company wide.

I didn't start to hate my job until my job started to hate me.

[BtmnHatesRbn]

Success is found in the past. CompUSA should consider how the lion's share of retail sales went down the toilet after 1998, when all of the stores were remodeled. Also, like the Geek Squad, I never met so many useless morons in computing in one place, sans the comments by Micro$oft Apologists on sites like CNET.

Good luck, but when I can get a great deal on-line for almost half the price with shipping, why would I go to a store?

[rshimizu12]

CompUSA will not reappear as a retail operation, but stores like Fry's will remain. Fry's is very convienent and competitive especially on their mainstream items. One challenge for Frys is become more web oriented for their retail operation.

[JamesArsht]

CompUSA has already reappeared as a retail operation, just not in nearly as many markets as before.

[ddanckaert]

CompUSA is famous for selling its $3 (wholesale) cables for $30. In Gaithersburg, MD, we had a CompUSA that couldn't compete with an Asian family owned store (tcponline.com) which sold the same stuff for much better prices (they offered services too).

[dpickard]

I think it would be great to go into a retail store and buy a new motherboard or video card for the same price it would take to get it in 3 - 5 days from newegg.com

[gwa53]

Where are the 30 new retail outlets of CompUSA 2.0?

[magusat999]

CompUSA in my area was not all that great, but it was the best of the worst. Fry's refuses to open anywhere near the East Bay (in California) requiring anyone near San Francisco to take a long drive to get there. Best Buy is even worse than CompUSA, selling only cheaply made but overpriced "household name" brands (like Belkin and Monster Cable), and Radio Shack is useless. After Circuit City left, that's basically all we have.

There was a brief period where CompUSA was selling a wide range of computer parts and products, but then they allowed cellphone companies and specific manufacturers like HP to dominate their stores, dramatically cutting down on quality, yet not widely known brands. For a while it was not necessary to trek to Fry's to find decent parts - but then they switched up became very limited (as described above). The employees were unhelpful to downright rude - I thought they had a massive layoff until I walked in there one day and the playoffs were on a large screen display - I counted at least 20 floor people. I couldn't believe it. They come out to goof off watching the playoffs, but when a customer needed help they were running off the floor.

In the last days CompUSA was a pathetic, useless store. It had a gigantic cellphone center. A massive HP printer / PC section. A dusty Apple store. An ancient video game section with kiosks that only worked for the employees. The peripheral section had like 3-4 brands dominating and the cables had Belkin and Monster exclusively. Software had been cut from 6-8 isles to 2-3. Memory was way overpriced, videocards and hard drives were limited and also overpriced. It was a waste of time going there.

I don't even bother to go to brick and mortar unless see a really great item for cheap. Newegg is my best friend now.

[bruceslog]

I've just been worried that TigerDirect would become degraded and slide downward in product value, selection, and service, as it continues it's merge with CompUSA.

I'm hoping that this merger doesn't ruin TigerDirect.

[raybob23]

I just want to warn everyone that Tiger Direct is one of the worst companies to deal with about warrantee and guarantees. If you didn't like dealing with the old Comp USA get ready for a real thrill ride with Tiger. I have been using Tiger for years and never had any real problems with them, but I also never had to send anything back. A few weeks ago I bought a computer from Comp USA with a full 90 day warrantee. First I was told they were having a deal on shipping it would only be $1.99 however when I checked my delivery slip I was billed $24.00 for shipping, then...The day I get the computer I set it up, and after about an hour the computer freezes up and starts making strange sounds, it was the hard drive. So I contacted Comp USA, they told me to call this other company so they could diagnose the problem, they confirmed that it was a bad hard drive, I was then told to contact Tiger Direct customer service, so I did and they gave me 2 options I could send back the computer and wait 3 to 4 weeks for them to ship me a replacement, but they were sold out of my model so I would have to pay at least $50.00 more for the next closest model and then wait 3 to 4 weeks or I could buy another computer from them and after they receive my return they would start processing my refund which could take several weeks.

The customer service people and their supervisors were rude and arrogant telling me there is nothing else I can do about this...... I even asked if they could just send me a hard rdive so I could swap it out myself and send them the dead one, They said they would not do that either.

I don't know about you but when somebody rips me off I sure as H*LL am not going to send them MORE money, and who can wait 3 to 4 weeks without a computer.

So I warn consumers out there, How much are you really saving when you have to go out and buy a new hard drive for $150.00 to replace the new one that is under "warrantee".....