What Went Wrong For CompUSA
How did CompUSA go from a promising retail chain to extinct in a matter of just a few years? According to a postmortem published in the Dallas Morning News Tuesday, what did the company in was a series of strategic mistakes, as well as a failure to adapt to changing circumstances.
The biggest problems that did in the chain, according to analysts interviewed by the paper, were a failure to find one major market segment in which it held a major advantage, too few stores with too little volume, too many acquisitions, and money-saving cuts that hit the company too hard.
CompUSA also, analysts and other experts said, took too long to adjust to Internet retail in the mid-1990s, and failed to expand beyond its core retail offerings at a time when its competitors were doing so.