2007 Departures: CompUSA failed to upgrade
Filed under: Entrepreneurship, Shopping, Technology
Computer geeks and anyone else who wants to find a wide selection of accessories for their computer systems will miss CompUSA when its doors close at the end of 2007. It's mind-boggling how the richest man in the world, Mexican retailer and telephone baron Carlos Slim, could turn a multi-billion investment into zero in just eight years. In 2006, CompUSA had $4 billion in sales; that's expected to drop to just $1.5 billion in 2007 with more than 100 stores closed throughout the year.
In its heyday, CompUSA offered better protection for consumers who bought its extended warranties and better service than Best Buy ever could. While the service contracts will still be legally valid, I doubt the service will be anywhere near as good as it was when you could walk into a CompUSA store and work directly with the service people. CompUSA bailed me out of a number of computer crises over the years and I for one will miss them dearly. Luckily I'm married to a computer geek now who can do my repairs for me. My business would be shut down without my computer.
The biggest mistake Slim made was underestimating the need for marketing. While Best Buy and Circuit City fought it out for customers on the airwaves, CompUSA stayed silent. There was just too much noise from competitors and not enough response from CompUSA.
We'll miss you, and hope we can find another good outlet for computer accessories and support. For all the computer geeks out there that lost jobs as tech jobs moved overseas, this could be a blessing in disguise. It may be a good time to look into starting your own computer support businesses and replace the void CompUSA will leave.
This post was written as part of a series on on 2007 departures. Read about more products, companies and people you won't see in 2008.
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Reader Comments (Page 1 of 11)
12-27-2007 @ 6:47AM
Givra said...
I'm not trying to flame the author of this blog, but I as a so called "computer geek" won't miss Comp USA at all. It's been at least three or four years since I last walked into one. For starters, they were vastly overpriced compared to the online resellers. Often they lacked stock the online resellers would have also, my local one at least might only carry let's say two or three models of a particular brand of let's say computer cases, while most online resellers might carry half if not most or all of the cases sold under that brand. I never did have a PC serviced at a Comp USA since I do build my own systems as a hobby and thus do my own service, so I can't comment on that to be fair. But, I do know that the return policy for at least the better known online resellers is very fair toward the consumer, if one does have a part that doesn't function properly.
In short...Comp USA was overpriced and understocked with regards to variety in my opinion. I do feel for the people who lost jobs, but I won't miss the store at all.
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12-29-2007 @ 8:46PM
Faith said...
Wow...you learned about computers, but you surely did not learn how to punctuate your sentences. I was interested in reading your information, but you had no signs to guide me. Maybe you could find a book or tutorial at one of your "online" shops that explains how to punctuate. Please. That or don't disgrace yourself by writing a review (or continue to expect people to read through your rubbish). Honestly.
12-31-2007 @ 4:16PM
JRaike624 said...
Yes, I have to agree, CompUSA dug their own grave. High prices, low stock, never what they had in their flyer on hand, and rebates, tha's a whole other issue. Won't miss them, do much better on-line, and have it in two days, at a great price, no hassle. Speaking of HASSLE, CompUSA was not the best at returning items without giving you the third degree, like it was coming out of their own personal bank account. Creeps.
12-31-2007 @ 5:45PM
Rudy Vacek said...
I couldn't get any kind of help or answer on the phone.
It seems that every time I called they were asleep at the switch.
12-31-2007 @ 6:41PM
Rey Jones said...
What,s important? Punctuation or information. Let some light into that darkness between your ears.
12-31-2007 @ 6:45PM
mark twarkins said...
If you have not been in a Comp USA for three or four years, as you say, how is it that you are so in tune with their business issues.
12-31-2007 @ 8:03PM
shanky740 said...
you keep saying online. but if there was no online you'd still be buying in stores.
1-01-2008 @ 9:39PM
Richard said...
CompUSA had the worst service of any retailer that sold computer equipment, including even such companies as Staples and Office Max and ... dare I say it, even Walmart ... CompUSA should go out of business because its prices were too high, its service quality too low, and its retail locations too inconvenient.
Thus it is in the world of business ... lead, follow, or fail ...
1-02-2008 @ 12:50AM
Marlene said...
Ditto...overpriced, understocked, and poor customer service in all the stores I visited. I stopped shopping in their stores over 5 years ago. When you give Managers feedback, but they do nothing to improve service, you aren't going to make it in this competative market.
12-27-2007 @ 7:32AM
NATE LOVOY said...
I like comp for the reason I am a bargan hunter. I could go in and find what I need in an open box and get a bargan. I for one will miss them.
Nate lovoy
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12-27-2007 @ 8:22AM
John South said...
CompUSA, the worst service of any PC store, Telephone them a hopeless waste, will not miss them as Aftwer a few insults etc, it was a pleasure using
Staples..
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12-27-2007 @ 8:46AM
David S said...
Without a doubt the worst sales and service experience I have ever had. The service costs were often more expensive than the component itself.
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12-27-2007 @ 9:10AM
Lita Epstein said...
I think what it gets down to as with all businesses - it's the people doing the service. Obviously the COMP USA I worked with regularly had a great tech team who offered customers what they needed. Other COMPs did not.
Lita
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12-31-2007 @ 4:37PM
mschristiem said...
Too bad you stood a good chance of purchasing someone else's repackaged return. Everyone I know stopped doing business with them because they were caught lying too many times. Good riddance to deceptive practices and poor management!!
12-27-2007 @ 9:18AM
Mike Ford said...
CompUSA was not a multi-billion dollar investment. Slim stole the company for less than $200 million in a depressed market with the help of its former officers and directors.
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12-27-2007 @ 9:24AM
Mike Ford said...
" It's mind-boggling how the richest man in the world, Mexican retailer and telephone baron Carlos Slim, could turn a multi-billion investment into zero in just eight years." Do some research. This was not a multi-billion dollar investment. Slim basically acquired CompUSA for free. After purchasing the shares in a depressed market for less than $200 million, Slim signed a $100M+ marketing deal with AOL that returned most of his cash.
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12-27-2007 @ 9:25AM
Lita Epstein said...
Mike,
I'm not sure where you are getting your numbers from, but this story from the Wall Street Journal news services indicates he sunk $2 billion into Comp USA.
http://articles.moneycentral.msn.com/Investing/Extra/CompUSAToCloseAllStores.aspx
Lita
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12-27-2007 @ 9:46AM
Rog said...
Anyone else bothered by the byline indicating this story was posted on 12/30/07, and today is only 12/27/07?
I haven't been in a CompUSA store in over ten years, but I remember during their first few years in business, they were the best. There were no Best Buys, and Circuit City was mainly just audio/video components, not computer equipment. And Staples, Office Depot, etc. were only interested in business equipment. Radio Shack was still basically a hobbyist supplier.
But CompUSA had it all -- if you wanted to buy a new system or component, they had a wide selection of brands at reasonable prices. If you wanted to boost your old system, they had the memory chips/boards, the internal/external hard drives, other sound/graphics setups, etc., and they would install them for free, or for a very small charge. If anything you bought from them didn't work right, you took it back and they fixed or replaced it, period, no hassles.
If you wanted to find other software languages or Linux or business software or games, they had 'em in stock, and usually had a demo model you could try out. For larger displays or laser printers or printing supplies, they were always the best, and most of the time, also nearly the cheapest.
I'm sorry to hear from all you posters that it went downhill so badly. I will miss them.
Rog
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12-27-2007 @ 9:54AM
Brian said...
viva la Mexico!
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12-27-2007 @ 10:04AM
John said...
I haven't gone into a CompUSA in years ! They used to have some good sales, however when I drove 20 miles to the store, on the first day of the sale, they were already out of whatever they had advertised. Obviously they never had it. I think that's illegal, right ?? Once I called their Customer Service line, somewhere in Texas, and the end result was, the guy hung up on me. Oh, and if you didn't buy their warranty, you might as well have bought it over the internet because once you walked out of the store, they washed their hands of you, no matter what the problem was. At that point, even if it was broken right out of the box, you were dealing with the manufacturer. They wouldn't even talk to you about your problem. Sorry, I won't miss them at all. Good ridance to bad business.
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