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05 Jul 98

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Dinsey Apple Monochrome

A Revisit: CompUSA is The Weak Link

RFI wrote some extremely critical comments and observations about the execution of CompUSA's "Apple Store Within a Store" / "Salon Store." We based those criticisms on not only direct observation but other reports and other anecdotal evidence at the time. Suffice it to say, since our first report, things have not changed and those initial criticisms have only been reinforced. And, it also reinforces our belief that CompUSA is "The Weak Link in the Chain." CompUSA gets an "F." Let's look at the evidence, shall we?

1) It's More of the Same, But More of It:" With the addition of Banners and stock in an "Apple Store Within a Store," there has been no appreciable change in the way that CompUSA treats Apple merchandise, etc. In fact, it appears that it's in name only. A "Grand Strategy" whose execution should be executed.

CompUSA gets an "F" on the execution.

2) Positioning: The Apple "Salon Stores" are usually placed in the far right rear corner of the store, in that "neglected corner." The Apple Salon Store is usually located right next to the area where CompUSA has its: Returns, Refusals and Rejects; that are heavily discounted to "get rid of the schlock, uh stock." That they are also usually located next to the "Edutainment Area" (where parents dump their kids while they shop) isn't a plus. Just as in real estate, the same goes for retail: "It's location, location, location." Well, CompUSA's "location" of the Apple Store Within a Store, stinks.

Another "F."

3) Stocking: For the most part, the Apple Salon Stores we've seen, and received reports on, are poorly stocked with merchandise. More often than not, there isn't a huge selection. Items are out of stock, the choice is limited, and the general usefulness of the stocking choices make it not worth the drive. It's a heck of a lot easier to eschew the drive and do your shopping via: telephone, catalog, publication ad, or over the Internet. Yes, it's that frustrating. You'd think that they'd have Global Village Teleports, etc. in quantity, no? No.

During the Apple Demo Days at one CompUSA Apple Salon Store, the person Apple hired to come in for the Demo Day did their best but they couldn't even show potential customers the G3 PowerBooks and demonstrate them because they were chained up all the way across the store. And, they couldn't leave the area to show potential customers the boxes. All they could do is tell people where they were chained up.

And when asked about a particular software title the best answer they could give about "getting it fast" was to call Mac Warehouse, or another cataloger, or go to the Internet and have it delivered. In other words, CompUSA did not have it in stock. Never mind that it was a "Major Title." The person was quite knowledgeable but they were hobbled because CompUSA was not prepared for those Apple Demo Days.

And, there was nary a CompUSA employee in sight of the Apple Salon Store. Let alone one of those "Trained Salespeople."

CompUSA gets a "D Minus."

4) Display:

With the exception of the Apple Demo Days, where an Apple contract employee was present, our visits to the CompUSA Apple Salon Stores usually had boxes frozen, darkened, display slots "totally empty." Or, the access to the Apple Salon Store blocked by one of those "stock ladders" because it was "an out of the way place to park it." If people can't easily access the Apple Salon Store area, then what good is having it? Especially if potential customers have to face obstacles just to get into the area?

CompUSA gets another "F."

5) Staffing:

With the exception of the Apple Demo Days, it is extremely unlikely that anyone who not only finds their way to the Apple Salon Store, but is able to gain access to it, will probably find a salesperson present to assist them; let alone a trained and knowledgeable salesperson. This isn't "just one store." There's a "cloud of witnesses" who all relayed the same thing. One "customer," a well placed professional was "offered a job on the spot" by a store manager because they went in to buy a relative a Mac and wound up servicing other customers who had questions about Macs. Excuse us? Where's the "trained sales staff" that CompUSA was supposed to deploy in those Salon Stores? Mars? For training? Good God in Heaven. It's not like this is still "new."

As an aside, when visiting the CompUSA "Salon Stores," Echo 4 staffers have had to do the same thing; picking up CompUSA's shortcomings. Stopping and talking with potential customers about what best suits their needs. And it eats up precious time because usually the only reason they are there is to pick something up that is needed that day and can't wait for delivery. That's not "Evangelism," it's being helpful to those in need. No one should have to do CompUSA's job for them. They should be doing it on their own. Especially since they got a "Sweetheart Deal" from Apple.

CompUSA gets another "F."

Bottom Line?:

The execution of the CompUSA "Store Within a Store" concept gets an overall "F." RFI is not going to inflate their grade to raise their self-esteem because of their "effort." They get an "F" for effort too. Apple needs to get all over them "like white on rice" to make certain that the execution matches the promises and representations made.

But, not all is lost. Read the next item. If rumors and reports are true. then CompUSA might have a run for its Apple Margins (read "fat") and Money....

05 Jul 98 Addendum:

After RFI sent this out to our subscribers, a few people talked about their positive experiences with some of the Apple "Stores Within a Store" execution. They talked about how their personal experience differed from the majority of those who provided anedotal reports on them. But, they also stated that those locations they visited were "High Profile Areas." In other words, places "really close" to high profile locations like Apple, Microsoft, etc.

RFI does not disagree with those reports, and we're certain that those stores are all but guaranteed to have a good execution. And, we also pointed out that the Apple "Salon Store" in Norwalk (CT) is in an area where a lot of "The Creative World" and Wall Street types shop. And, "you can't swing a dead cat" in that region without hitting a "Creative World" or "Wall Street" type. So, that store is "pretty high profile" as well. Not to mention it's close by the headquarters of MacWarehouse, et al. And, we've also received reports that the Los Angeles (Hollywood) executions are "wanting" as well.

Even still, it's not the "execution" of those Stores Within a Store in high profile locales that "count," but the overall execution. It's in all the other locations where "the mass market shops," and are not the beneficiaries of "high profile excellent execution." And, RFI has not been hearing people singing the praises of the execution of the stores.

But there's "hope......"
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