Thread: COMP USA (Grupo Carso) TO CLOSE NORTH COUNTY STORES

CompUSA to close North County stores

By: PATRICK WRIGHT - Staff Writer
MARCH 1, 2007

NORTH COUNTY ---- The CompUSA computer stores in San Marcos and Encinitas will close by the end of May, a spokeswoman for the company said Wednesday.

The Dallas-based company announced a major restructuring that it said includes the closing of 126 of its 225 stores nationwide. The closures are concentrated in certain markets, including its Los Angeles and San Diego regions. All four stores in San Diego County and one in Murrieta will be shuttered.

The San Marcos store is at 2085 Montiel Road, and the Encinitas store is at 1046 N. El Camino Real.

George Whalin, president of Retail Management Consultants in San Marcos, said that CompUSA has been struggling as a minor player in an industry that includes the much larger names Best Buy, Circuit City and Wal-Mart, with more than 800 stores nationally.

Whalin said that even with the restructuring, the company might not survive because it doesn't have a unique identity. "You have to have something that distinguishes you, and they didn't have anything," he said.

As part of the realignment, the company will get a $440 million cash infusion from its owner, the Mexican conglomerate Grupo Carso, which bought the company in 2000 for $798 million. Grupo Carso put the chain up for sale in September, according to the Dallas Morning News.

CompUSA, founded in Dallas in 1984, reported revenues of $4.6 billion in 2005, the most current available.

Comments On This Story

Note: Comments reflect the views of readers and not necessarily those of the North County Times or its staff.

Floyd wrote on February 28, 2007 10:05 PM:"CompUSA has an identity, all right. They advertise prices that they do not honor because you have to apply for a rebate by mail that either does not come, or is merely a discount coupon on another purchase. If they had actually offered their products at the advertised prices, they would have been a big success! "

billy wrote on March 01, 2007 11:05 AM:"When i first moved to north county comp usa was the only game in town. now they have competition there is really no reason to shop there. comp usa doesent even try to compete with the big computer stores. if you want to pay 25%+ more than any other computer store in north county, comp usa is the place for you. they do have alot of products in stock and could be a great store if they provided good customer service. people would pay more if they offered somthing different than the other stores in north county. "

Press 1 for English, Press 2 for deportation wrote on March 01, 2007 4:16 PM:"Thanks for letting me know CompUSA is owned by a Mexican conglomerate. I'll be sure not to shop there until Mexico does something to keep their own people in Mexico and help us, not hurt us, on illegal immigration."

Skip wrote on March 01, 2007 5:01 PM:"I stopped shopping at Comp USA a couple of years ago because I got so tired of responding to their Sunday Sale ads, only to find out that the store never had any stock of the item on hand. I sent them a letter complaining and they sent me back a form letter that did not address the issue. I still remember when a computer flight simulator game came out in 2004, and they were giving away a free flight manual with purchase of the game. What they did not tell you was that each store in the San Diego Area only got 4 books to give away. I ended up calling about a dozen stores to find out that had the promo, but with all of the phone calls and driving it probably would have been cheaper to go someplace else. I DO NOT SHOP AT COMP USA ANYMORE. There are just too many choices that have better customer service."

Skip wrote on March 01, 2007 5:35 PM:"If they change the name of the store in San Marcos, to "COMP MEXICO", they may have better business."

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http://www.nctimes.com/articles/2007/03 ... _28_07.txt

CompUSA seeking buyer, paper says

Electronics chain's Mexican parent company Grupo Carso SA shopping for potential investors, according to report.

September 13 2006: 8:16 AM EDT


NEW YORK (CNNMoney.com) -- Consumer electronics chain CompUSA's Mexican parent Grupo Carso is looking to put the company up for sale, according to a report published Wednesday.

Citing sources familiar with the matter, the Dallas Morning News reported that the Mexican conglomerate, which is controlled by billionaire Carlos Slim Helú, has asked Credit Suisse to quietly approach people who might have an interest in buying the company.

The paper said Roman Ross, CompUSA's new CEO, declined to comment on any sale.

"CompUSA is owned by Grupo Carso and it, like all other companies, is always looking at its portfolio and always evaluating what is best for a company," the paper quoted him as saying.

The 230-store chain posted its strongest operating results in a decade in 2005, but it wasn't able to keep up the momentum and needs additional capital to remodel and build new stores, the company said.

CompUSA went public in 1991 and subsequently underwent rapid expansion. By the mid- to late 1990s, it struggled with lower PC prices and increased competition from chains like Best Buy (Charts) and Circuit City (Charts), the report said.

In 2000, after a string of losses, CompUSA was taken private by companies owned by Helú. Last year, CompUSA posted sales of $4.6 billion.

The paper said Slim Helú's Mexico office couldn't be reached for comment.

http://money.cnn.com/2006/09/13/news/co ... /index.htm

#3 Carlos Slim Helu

Zuma Press

Age: 66
Fortune: inherited and growing
Source: Telecom

Net Worth: 30.0 BILLION

Country Of Citizenship: Mexico
Residence: Mexico City, Mexico, North America
Industry: Communications
Marital Status: widowed, 6 children



Latin America's richest man added more than $6 billion to his fortune this year. He sold off his stakes in MCI and Altria and used the proceeds to up his holding in Saks Inc; in his fixed line operator, Telmex; and in America Movil, his flagship wireless telecom outfit. The latest was a particularly smart move as America Movil's stock has almost doubled in the past year. He also owns 71% of a new public company, Impulsora del Desarollo Economico de America Latina, which he spun off from financial services giant Grupo Financiero Inbursa. Inbursa also invested in a start-up budget airline called Volaris. An art collector, Slim houses his Rodin sculptures in Mexico City's Museo Soumaya, the museum he funded and named after his late wife. His Grupo Carso is reportedly a combination of his first name and his late wife's.

http://www.forbes.com/lists/2006/10/WYDJ.html



Diameter of disc reflects size of fortune. The red disc indicates Carlos Slim Helu

CompUSA to close all 5 area stores

March 1, 2007

BY SANDRA GUY Business Reporter

Computer retailer CompUSA is pulling out of the Chicago market within 90 days.
The Dallas-based company is closing more than half of its stores, including five stores in the Chicago area, leaving its closest stores in Rockford and Indianapolis.

The stores slated to close are:

• 101 E. Chicago Ave., Chicago.

• 115 Skokie Valley Rd., Highland Park.
• 1045 E. Golf Rd., Schaumburg.
• 7011 Central Ave., Skokie.
• 710 Commons Drive, Geneva.
No information was available on the number of employees losing their jobs, according to a company spokeswoman.

The closings are part of a massive overhaul aimed at cutting costs and better competing with rivals such as Best Buy and Circuit City.

In the Chicago area, CompUSA has run into explosive growth by other retailers.


The office retailing market is very competitive, and the major players sell much the same thing, said John Gabriel, a stock analyst at Chicago-based Morningstar.

Staples, the No. 1 office-supply retailer in the nation, is known for clean stores, good customer service and bargains, he said.

CompUSA, owned by Mexican billionaire Carlos Slim Helu, is hiring executives and will close more than half of its 225 stores in the United States and Puerto Rico, the company announced Tuesday night. It also will receive $440 million in cash from Mexico City-based parent U.S. Commercial Corp, a holding company controlled by Slim.

The company will continue to offer products and services, including technical services, at its Web site, CompUSA.com, and at its (800) CompUSA toll-free number.

CompUSA will be left with 103 stores after the liquidations, which start today.

sguy@suntimes.com

http://www.suntimes.com/business/278189 ... 01.article