The retail electronics space is about to get a lot less competitive.
CompUSA announced yesterday that it is set to close more than half of its US
retail locations within the next 3 months, dropping expensive and low-performing
locations to focus in on their top performing stores. After closing 126
locations, CompUSA will receive a $440 million cash infusion from an unknown
source. This is all part of a major cost-cutting and restructuring effort
for the electronics retailer.
This is the latest entry in the company's recent shrinking history, with
rumors floating about closing locations as late as last September, and the
announcement on Monday that it would be closing two stores in California, one in
Texas and on in Illinois.
This comes on the heels of Circuit City announcing earlier this month that 70
of its stores were on the chopping block.
So far, it seems like Best Buy is the only one weathering the current retail
storm.