New trade initiatives

A number of trends are conspiring to push PCs off retail shelves, even at stores where "computer" is part of the name. Intense restructuring and strategic changes at CompUSA and other superstores, a renewed push to boost direct sales by large PC makers such as IBM, and the "free" PC movement are making it increasingly difficult for stores to justify selling computers. CompUSA said this week that it is delaying its earnings report one week, until August 30, "to provide more details of...strategic initiatives." Previously, the company said that new initiatives would, among other goals, "allow us to reduce our dependence on low-margin desktop personal computers." Last quarter, the national PC chain said the average selling prices of desktop computers dropped from the previous year by 20 percent, though unit sales were up. This comes in the wake of an earnings report from OfficeMax stating that its computer sales have become a drain on the bottom line. Good Guys, a large California-based chain of electronics stores, also said recently said that it is transitioning out of PC sales. CompUSA, meanwhile, continues to "adjust" product layout at stores to focus on handheld computer technology, game machines, "smart" interactive toys, DVD movies and equipment, and MP3 Internet music distribution, according to a statement.