Systemax to Run Multibrand StrategyBy Sara Driscoll | Posted 2008-01-09 Email Print
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Following its purchase of the CompUSA brand and e-commerce site, Systemax will continue to run both brands.Systemax intends to run both its TigerDirect brand and its newly acquired CompUSA brands simultaneously online, but will rebrand its own retail outlets at CompUSA stores, according to executives at the firm.
Systemax recently acquired the brand, e-commerce site and 16 retail outlets of CompUSA, after the retail giant announced in December 2007 that it was closing all of its remaining 103 stores. CompUSA had continued to struggle after closing 126 stores in February 2007.
Beth Vanni, director of consulting practice at channel analyst firm Amazon Consulting, said it was a interesting move by Systemax. "Many retailers have expanded and contracted their number of outlets. CompUSA has a good brand, although it is hard to know if any damage was done by closing its stores," she said.
Vanni said CompUSA struggled because it did not do enough to differentiate itself. "Being in retail is challenging and expensive, and requires massive scale unless there is a key differentiator. It is a tough place to be, especially when you are competing with the likes of Wal-Mart these days."
She said the product mix and services offered by Systemax would be a crucial element in its success.