Cheap LCDs to Blame for CompUSA Store Closing?

Illustration for article titled Cheap LCDs to Blame for CompUSA Store Closing?

Manufacturers of cheap flat-panel TVs, like Vizio and Olevia, could be partially blamed over the recent closing of 128 CompUSA stores and 70 Circuit City stores. Obviously, the low prices of the off-brand LCD flat panels have put a lot of pressure on the "premium" flat-panel manufacturers like Sony and Panasonic to drop prices to compete. The price drops all around have squeezed the margins and hurt the brick-and-mortar retailers like CompUSA and Circuit City, in turn partially causing some of the recent closings. The general consensus at yesterday's U.S. Flat Panel Display Conference was that there are too many brands on the shelves and that the discounts need to stop. Maybe it's just a hunch, but I don't think that opinion will be too popular with the consumers.


Flat-panel TV makers sing the discount blues []


I dont think LCD's like olevia were to blame, Office deport and HH greg both sell massive ammounts of olevias everytime there is a sale, they havent gone out of bussines. I think compusa went out of bussines because:

1. Their video cards are 50-100$ more than other stores want

2. They dont have much of a range of PC parts such as motherboards, whenever I go there, I only see 3-4 motherboards in their PC part shelf, they may have more behind counter for their "build your own PC" area, but most consumers want to purchase it themselves off the shelves, so people dont buy cause they just think they dont have stock.

3. Their store locations were too far apart for some people, I have to frive 40 miles to get to my "local" compusa. Now, other people in the country have to drive more just to go to the thanksgiving supersale.

I was pretty sad when compusa's were closing, my local store didnt, but I was thinking sooner or later, less customers may mean more stores close in future.