By Tom Ryan
CompUSA, which was left for dead after filing for bankruptcy in 2007, is attempting a brick & mortar comeback with a strategy featuring steep discounts, remodeled stores, and in-store web access for comparison-shopping. The new formula comes from its owner, Systemax, which is attempting to marry the success of its online consumer electronics discount subsidiary, TigerDirect, to the brick & mortar world.
"We have invented this idea of Retail
2.0," Systemax executive and TigerDirect founder Gilbert Fiorentino,
told Wired. "Every screen in every CompUSA store is now connected
to the internet and making buying a richer experience for customers."
While TigerDirect has been one of the big beneficiaries of online shopping for consumer electronics online, Mr. Fiorentino said customers still want to go stores to buy electronics. Systemax now has about 25 CompUSA stores, mainly located in Florida. A CompUSA website has been in operation for awhile promising "slam dunk savings."
According to Wired, providing in-store web access may be the biggest risk since consumers using a CompUSA floor model can hunt for better deals on Amazon.com. Customers are able to surf anywhere, including checking their Facebook or Twitter accounts. Customers can also go online to research products, owner's manuals, reviews, product tutorials, pictures and installation details. There's also custom information for that particular store, including in-stock levels of items.
"We do the same thing with laptops, desktops and monitors," said Mr. Fiorentino. "We are using tech to change the retail experience for the customer and giving them access to all the information on the internet anytime they want during the buying process."
According to ChannelWeb, feedback from customers on the web has been positive, with some shoppers saying the stores are less cluttered and better lit. But the discounts seem to be the main appeal so far, such as a Lenovo notebook with full features for $399.99.
Mr. Fiorentino asserted to Wired that CompUSA can keep its prices low despite the additional overhead costs associated with a physical store. CompUSA's inventory is tied into TigerDirect and the same prices are offered online as in the stores.
Doug Fleener, president of retail consulting firm Dynamic Experiences and a RetailWire BrainTrust panelist, said it's unknown whether shoppers will want to research information while shopping rather than doing it at home. But he said CompUSA can fill a void in the marketplace if it's able to manage the overhead involved with operating physical stores.
"Stores like Circuit City going out does leave an opportunity in the market," said Mr. Fleener.
Discussion Question: What do you think of CompUSA's new retail 2.0 concept, especially its move to allow unrestricted internet access throughout the store? Even with its TigerDirect connection, do you think CompUSA will be able to compete on price against online competition?