CompUSA props Apple computer with special in-store program

Discount Store News, Dec 8, 1997 by Laura Heller

LAURA HELLER

DALLAS - While Steve Jobs, acting chairman of Apple, struggles to turn around the flailing computer company, at least one retailer has pledged its support. CompUSA announced it will launch a new Apple store-within-a-store program showcasing the company's products.

'If you're a Mac user in most places in this country, there's no place to go and have a good Mac experience,' executive vp, merchandising for CompUSA Larry Mondry told DSN. 'Apple users are still a very, very devoted clientele who have been frustrated [by a lack of availability]. There's a huge amount of pent-up demand.'

CompUSA stores will dedicate approximately 1,000 sq. ft. to Apple products. Mondry said the intent is threefold: to take the products already scattered throughout the store and put them all in one place; to increase assortment; and to then 'display everything in a manner that is exciting and enticing to the Apple customer.'

The first store was reset last month. The new Apple center is in Pleasantown, Calif., and another 40 stores were carrying the products by Thanksgiving. Store resets will resume after the first of the year and will encompass the company's remaining stores, Mondry said.

Not only is CompUSA. devoting space to Apple products, but employees are receiving special training as well. Mac-certified technicians will be located at all CompUSA stores, and designated 'Apple professionals' will receive additional training in Mac products.

Although many in the industry consider Apple's future grim, the company has attained some much-needed financing courtesy of Bill Gates and Microsoft and recently launched an aggressive marketing campaign promoting its difference from the more mainstream PC.

Initial reports are good for Apples polished-up image. In August, Apple's new MAC OS 8 operating system took over the top sales spot from Microsoft, with 35% of units sold compared to 28% of MS Windows 95, according to the NPD Group, which tracks consumer and retail sales.

Overall, OS 8 attained a 577% sales growth for the third quarter of 1997 compared to the same period the year before. It captured 33% of unit sales, a 27% increase over its share of the market a year ago.

Apple plans to follow up with the release of a new operating system called 'Rhapsody' in the second half of 1998. Its new on-line Apple Store took orders of more than $500,000 during its first twelve hours and received approximately 4.4 million 'hits.'

'We just think there's been a niche in the market that's underserved, and we're going to fill it,' Mondry said.

Another niche that CompUSA is looking to fill is that of campus computer reseller. The Dallas-based company recently opened three sites at Northwestern University and is now the official reseller for the school.

According to Linda Edmundson, director of education for CompUSA, Northwestern's outsourcing of computer operations is all about trying to run the business more efficiently.

'University campuses are looking at how to do this model better,' Edmundson said. To this end, Northwestern approached CompUSA in the hopes of better integrating campus technology.

The three locations, one at the Lake Shore Campus in Chicago and two in Evanston, including the former university-run site at the student union, carry only Northwestern-endorsed products. Both hardware and software are compatible with all university systems and available only to Northwestern faculty, staff and students.

CompUSA processes product orders from the university, operates an on-site technical center, sells retail products and makes deliveries and repairs. It is the first such operation for CompUSA, but it numbers among the many firsts the company has attempted in recent months.

In addition to the Apple store-within-a-store, CompUSA opened five small-format stores in rural locations to test the concept for possible expansion and launched its own built-to-order PC.

As for future firsts, Edmundson said, 'We are CompUSA, and we are always open to new business opportunities.'