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Dec10
CompUSA
Those working in high technology may know that CompUSA is closing after this holiday season.

 

 

Those attorneys looking for gadgets might have read in last weekend’s ads on the good deals to buy.  CompUSA has suffered loss. 

 

 

How does CompUSA closing affect people in the law?  It is a sign that e-commerce retailing is on the rise, and there may be more need for attorneys looking to do licensing work.  It is a sign that consumers are going to the Internet for purchases where they do not have to try on and can return within a certain amount of time for a refund rather than going to stores.  

 

Could CompUSA have done something to save the company?  It is hard to say if CompUSA would have survived with so many retailers in the same space who have both brick-and-mortar and e-commerce doors.  Electronics these days may be purchased at places like Target that do not cater solely to electronics.  Many manufacturers such as Sony and Apple have their own retail stores, and circulate credit cards which offer points for the purchase of products. 

 

 

How do businesses make decisions about whether to close their brick-and-mortar doors?  The cost of running a brick-and-mortar makes a good run for cash – with the headcount, rent, and utilities, a company may see that it is better to close shop or to open an e-commerce outlet.   

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