News broke over the weekend about CompUSA closing shop after the holidays; many are already closed. The first thing I thought about was how the internet – with all of its nimble technology retailers – is affecting the ability for brick-and-mortar stores. 

This announcement is a real indication of the competition in the electronics industry. According to a report by The Wall Street Journal, CompUSA has been struggling for years with the fiercest competition from Dell (NASDAQ:DELL), Best Buy (NYSE:BBY), and Wal-Mart (NYSE:WMT). Wal-Mart and Best Buy in particular have been able to undercut CompUSA prices while simultaneously offering a wider selection on the most popular consumer electronics.   

Russell Shaw at ZDNet.com offered an interesting perspective on CompUSA’s demise:

CompUSA never offered a comprehensive solution for today’s multi-gadget, multi-platform, multi-machine digital lifestyle. Devices were available, but not so much the parts to make them work. I mean, go into Fry’s and you’ll see more electronic gear SKUs than this side of Graybar Electric.

And when it comes to customer support, CompUSA has always struck me with their bored, inattentive, relatively informed and underpopulated floor staff. Compare that to Best Buy and Fry’s, where I have always found the sales and support folks eager and attentive.

…Sounds like a month from now, CompUSA will only be a memory. And not a good one.

The way I see it, this does not necessarily mean that the age of brick-and-mortar consumer electric retailers is over, it just means that they have to be prepared to meet the needs of today’s technology savvy, voracious - sometimes addicted - consumers. When people choose to go in store instead of making purchases online it is usually because they are looking for the customer service experience.

Whether CompUSA could have done something different to save the company is a question for analysts who want to ensure the success of their own retail enterprises. Brick-and-mortar retailers may never die but competition is fiercer than ever, so all retailers have to go the extra mile to ensure that they maintain the edge over others.