The e-retailer reports a $126 million net loss, stemming from a $640 million year-over-year increase in spending in the quarter on technology and content ...
Systemax will begin renaming all of its stores, which include about 11 Tiger Direct stores and 16 CompUSA stores, as CompUSA stores. But CompUSA.com remains as a separate web site with advanced features and more gear, says Systemax CEO Richard Leeds.
Systemax Inc., which also owns and operates TigerDirect.com, has completed its purchase of CompUSA.com and select stores.
The company, No. 24 in the Internet Retailer Top 500 Guide, will rename all of its stores, which include about 11 Tiger Direct stores and 16 CompUSA stores, as CompUSA stores.
But CompUSA.com will remain as a separate e-commerce site, says Systemax CEO Richard Leeds. Systemax has already updated CompUSA.com with an advanced search function and enhanced content, including photo galleries and videos on thousands of popular PC, TV and consumer electronics items.” We are taking advantage of available technology and that includes video,” Leeds says. “Videos can help to explain fairly complex products, which is what we sell.”
Systemax in January acquired the assets of CompUSA.com and some store locations for an undisclosed fee from Gordon Brothers Group LLC, a Boston investment banking firm that specializes in retailing liquidations. Going forward Systemax sees the acquisition as a way to build on its TigerDirect.com business and attract a wider audience of buyers of information technology and consumer electronics. “We’ve been running the web site since January and we are getting the traffic where it should be, and we’re selling a lot more components,” Leeds says.
The web also is helping Systemax drive more overall sales. For 2007, Systemax grew its sales by 19% to $2.77 billion from $2.34 billion in 2006. Systemax stopped breaking out the web as a percentage of total sales, but says it ended the year with a healthy increase in e-commerce revenue. “We did more than $900 million on the web last year,” Leeds says.