Although its roots in selling computers and peripherals online go back 15 years, multi-channel retailer Comp-U-Plus is now extending its product reach into new areas. “We’re moving slowly into consumer electronics and crossing over into housewares,” says Adam Reich, CEO and founder.
Comp-U-Plus, No. 112 in the Internet Retailer Top 500 Guide, plans to provide “everything electronic” for the home, including such diverse products as iRobot’s cordless vacuums and Braun espresso makers, Reich says. “We will be ‘A to Z’ for the home. We still carry a full line of computers, but housewares is the ‘sticky’ stuff,” he says.
Mobile product web sales also are sticking, with mobile device sales up 20% in 2006, Reich says, led by global positioning systems. Overall web sales, however, were off 6% compared to 2005.
“The first half of 2006 was devastating for companies in our business, although not all of them will admit it,” Reich says. The second half of the year was better but not enough to offset the dismal first two quarters, he adds.
Reich cites the slowing economy and inroads into online retailing by larger retailers like Walmart.com as mitigating factors. “They are penetrating our product lines more deeply. And if the economy is weak they are going to generate a little more sales,” he adds.
With the exception of Amazon.com, the big chain retailers aren’t likely to have a long-term effect on web sales of consumer electronics, Reich contends. “They are not going to be able to fulfill customer needs, and their product lines are not as deep. Except for Amazon, the consumer experience is not as good as buying from someone like us and I mean in this category not just my own business.”
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