TigerDirect to Absorb Circuit City, CompUSA Brands in North America
November 1, 2012 8:39 PM
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Systemax is also leaving the build to order (BTO) business
CircuitCity.com and CompUSA.com will now be absorbed by computer/electronics retailer
in an effort to combine brands for an easier business model.
Systemax, a multi-channel retailer of consumer electronics that heads TigerDirect,
and Circuit City, announced two key changes to its business strategy today. CircuitCity.com and CompUSA.com platforms will direct traffic to TigerDirect.com (all CompUSA stores will be re-branded as TigerDirect), and the company will exit the build to order (BTO) business.
Systemax has decided to lump
and CompUSA.com into TigerDirect in order to create an easier, more customer-focused business strategy.
"We are enthusiastic about the benefits of focusing all marketing efforts on the brand that has stood for great deals and exceptional value to our customers for years," said David Sprosty, CEO of Systemax. "All CompUSA stores in the US will be re-branded TigerDirect over the next month. Our CircuitCity.com and CompUSA.com online platforms will begin a traffic migration process that ultimately will redirect all traffic to TigerDirect.com."
As for change No. 2, Systemax is leaving the BTO business in order to meet customer needs instead of focusing on manufacturing.
"We believe that our customers are better served by TigerDirect partnering with numerous vendors to deliver build to order (BTO) solutions rather than competing with our partners," said Sprosty. "So, after more than 15 years in the BTO business, we will transition manufacturing to our vendors and strengthen these strategic relationships. To be clear, BTO will remain an integral element of our business by focusing on meeting customer’s unique needs rather than manufacturing computers."
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Tiger Direct Stores
11/3/2012 3:04:41 PM
It's a good move for them to consolidate these brands since everyone pretty much knows they're all the same. Dropping the build-to-order section was also a good decision. I never liked the concept, because anyone competent enough to intelligently pick their ideal components can do much better on price and selection on their own. I shop at my local CompUSA for most of my parts, because I want to return dead components right now, not wait for shipping both ways. Also it's nice to put your hands on stuff like cases to see if they're what you expect. The downside is limited selection, but the Tiger Direct website shows the in store availability of any item stocked, by store location, so no blank trips. I'm glad they're still in business, there's no other store like that in Jacksonville FL. The closest is Best Buy, but their selection of PC components in store is a joke. I bought my i5-3570K in CompUSA for $199.99, the cheapest I've ever seen it, during a one-day unadvertised manager's special. That $30 savings allowed me to upgrade my mobo choice to an Asus P8Z77-V, which has worked out very nicely.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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