Superstores force PC chains to reinvent themselves

Article Abstract:

Warehouse-sized superstores are squeezing traditional computer retailers, forcing traditional retailers to 'get big, get specialized or get out.' The middle ground is disappearing, and traditional retailers are not able to compete on price. Companies either can try to become like the superstores themselves, or they can specialize, offering services such as network installations. Chains like Computerland, Businessland and Microage are abandoning the home and small business markets. Although there are only a few dozen superstores in the United States, each one of them can signify the demise of many traditional retailers. Software-only stores are also experiencing difficulties, but at least one software-only chain, Egghead Discount Software, hopes to compete successfully with superstores by emphasizing selection and services.

Economic aspects, Discount stores, Warehouse stores, Egghead.com Inc., VARs (Value added resellers), Competition, Retailing, Marketing Strategy, Software Retailing, Value-Added Resellers

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Businessland has big loss and its stock price plunges

Article Abstract:

Businessland Inc reports significant losses for its 4th qtr 1990. The troubled retailer reports a loss of $21.5 million on the quarter, compared with earnings of $7.4 million for the same period one year ago. Revenues for the quarter rose to $339.3 million, up from $322.5 million for the same period a year ago. Businessland also announced it was restating its results for its second and third quarter to reflect larger losses than previously reported. On the news, which caught analysts off-guard, Businessland stock was sent falling $4 to close at $2.875. Most analysts now say the firm must significantly change its operating style, or face a potential takeover.

Finance, Profits, Financial Analysis Software, Profit, Financial Report, Losses, Fourth Quarter

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Computer retailer in Japan deal

Article Abstract:

Businessland Inc will form the new Tokyo-based company, Businessland Japan Company Ltd, as a joint venture with Softbank Corp and four other Japanese computer companies. Businessland Japan will be the only US microcomputer retailing effort in Japan. Some US computer manufacturers, however, engage in direct sales. Analysts believe market penetration will be difficult for Businessland because small vendors can delay approval under Japanese law. Businessland executives hope entry will be made easier by the assistance of the Japanese firms involved in the venture.

United States, Planning, Japan, Microcomputers, Retail industry, Retail trade, Joint ventures, International aspects, Japanese foreign relations, United States foreign relations, Softbank Corp., Workstations (Computers), Workstations, Microcomputer, Computer Industry, Joint Venture, Market Penetration, Businessland Japan Company Ltd.

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