CompUSA
CompUSA was an American big-box retailer and reseller of personal computers, consumer electronics, technology products, and related services.
Last updated August 26, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
CompUSA was an American technology retailer whose stores helped popularize the big-box computer-specialty format during the expansion of personal computing. The business began in 1984 as Soft Warehouse in Addison, Texas, founded by Errol Jacobson and Mike Henochowicz. It opened its first superstore in Addison in 1986 and began national expansion with a store in Atlanta in 1988. The company adopted the CompUSA name in 1991 and became publicly traded on the New York Stock Exchange. During the 1990s, CompUSA developed a nationwide presence selling desktop and notebook computers, peripherals, software, networking equipment, consumer electronics, accessories, and technical services. Its large-format stores were designed as one-stop destinations for households and small businesses, combining product selection with installation, repair, technical support, and later on-site services. The company also used mass-market advertising, including a long-running radio campaign featuring the character P.C. Modem, to make computer retail more accessible to general consumers. CompUSA expanded through acquisitions and partnerships. It acquired Tandy's Computer City subsidiary in 1998 and established a store-within-a-store arrangement with Apple for Macintosh sales. It also created CompUSA Call Center Services, a business-to-business contact-center operation that later became The Telvista Company, and acquired the consumer-electronics retailer Good Guys in 2003. Good Guys stores and branding were subsequently consolidated as CompUSA pursued a broader technology and home-entertainment proposition. The company's scale peaked at more than 200 stores, but its position weakened as competition intensified from Best Buy, Circuit City, Fry's Electronics, Micro Center, online retailers, and direct sales by manufacturers. Corporate ownership and strategic oversight were increasingly criticized as insufficiently responsive to changing consumer behavior, price competition, store saturation, and the growth of online shopping. CompUSA launched CompUSA.com in 1996, but its digital business did not produce a strong enough transition away from dependence on physical stores. In 2006 and 2007, the company began a major retrenchment. It suspended and then ended its CompUSA Network loyalty-rewards program, closed an initial group of underperforming stores, and announced the liquidation of 126 additional locations. The restructuring included a reported $440 million cash infusion, significant expense reductions, and the sale or closure of locations considered low-performing, strategically unsuitable, or exposed to market saturation. By the end of the process, the chain had been reduced to a small number of stores. Specialty Equity, an affiliate of Gordon Brothers Group, acquired the company in December 2007 during the restructuring and disposition process. In January 2008, Systemax acquired the CompUSA brand, trademarks, e-commerce operations, technical-services assets, and as many as 16 retail locations. Systemax attempted to preserve the name through a smaller store network and a retail strategy called Retail 2.0, which sought to combine in-store shopping with online ordering and fulfillment. The company also continued operating CompUSA.com for retail and business customers for a period. Systemax ended the CompUSA storefront identity in 2012, consolidating the remaining CompUSA and Circuit City operations under the TigerDirect name. CompUSA intellectual property was later sold to JASALI 645 Realty LLC in 2013 and leased to DealCentral in 2018, which announced plans to relaunch CompUSA.com. The brand did not regain its former retail presence. Later references indicate that the online domain was not functioning as a normal retail site, and the historic CompUSA store chain is defunct.
History
CompUSA originated in 1984 as Soft Warehouse in Addison, Texas. Founded by Errol Jacobson and Mike Henochowicz, the company initially focused on selling personal computers and related products through a specialized retail format. Its first superstore opened in Addison in 1986, followed by national expansion beginning with an Atlanta store in 1988. The company changed its name to CompUSA in 1991 and became publicly traded on the New York Stock Exchange. The chain grew rapidly during the expansion of the personal-computer market. Its large stores offered computers, components, software, peripherals, accessories, networking equipment, and technical assistance. CompUSA's advertising helped make the category familiar to mainstream consumers, including a radio campaign built around the P.C. Modem character. By the 1990s and early 2000s, the company had become one of the largest specialized technology retailers in the United States, with at least 229 stores at its peak. CompUSA broadened its business through acquisitions, partnerships, and service operations. In 1996 it began retail sales through CompUSA.com. In 1997 it partnered with Apple on a store-within-a-store concept for Macintosh products. In 1998 it acquired Tandy's Computer City subsidiary and created CompUSA Call Center Services, which supplied contact-center services to technology and telecommunications clients. The call-center division became The Telvista Company in 2001. CompUSA acquired Good Guys in 2003 and later converted selected stores into larger CompUSA locations, while using the Good Guys name in some California and Hawaii marketing. Ownership changed substantially in 2000, when Grupo Sanborns, associated with Grupo Carso, acquired 85 percent of the company and CompUSA became privately held. The business continued to expand its product scope into consumer electronics and home entertainment, but its retail model came under increasing pressure. Competitors included Best Buy, Circuit City, Fry's Electronics, Micro Center, online sellers, and computer manufacturers' direct channels. CompUSA was affected by intense price competition, market saturation, changing store economics, and the shift toward internet shopping. In 2005 the company launched the CompUSA Network loyalty program, but it suspended membership-card sales and ended the program in 2006 after reviewing customer-retention and customer-awareness issues. CompUSA also began closing stores in 2006 and attempted to reposition portions of the chain around high-definition televisions and home-theater products. In 2007, management announced a much larger restructuring involving the liquidation of 126 stores, significant expense reductions, and a reported $440 million cash infusion. The closures reduced the store base to less than half its previous size. Specialty Equity, an affiliate of Gordon Brothers Group, acquired CompUSA in December 2007 as part of the disposition process. Systemax acquired the CompUSA brand, trademarks, e-commerce operations, technical-services business, and as many as 16 stores in January 2008. Systemax maintained a smaller CompUSA retail presence and introduced Retail 2.0, an effort to integrate online shopping with physical stores. The surviving business included locations in several U.S. states and Puerto Rico, together with CompUSA.com and a business catalog operation. On November 2, 2012, Systemax announced that it would retire the CompUSA and Circuit City storefront names and consolidate their operations under TigerDirect. This ended the brand's historic use as a Systemax retail chain. CompUSA intellectual property was sold to JASALI 645 Realty LLC in 2013 and leased to DealCentral in 2018, which announced a planned CompUSA.com relaunch. The brand did not re-establish the former nationwide chain, and available references indicate that its online presence was not operating as a normal retail website by 2023.
- 2018
DealCentral leases CompUSA intellectual property
[1]DealCentral leased the intellectual property and announced an intended CompUSA.com relaunch.
- 2013
CompUSA intellectual property changes ownership
[1]CompUSA intellectual-property assets were sold to JASALI 645 Realty LLC.
- 2012
CompUSA storefronts are consolidated under TigerDirect
[1]Systemax retired the CompUSA and Circuit City storefront names in favor of TigerDirect.
- 2008
Systemax acquires CompUSA assets
[1]Systemax acquired the brand, trademarks, e-commerce business, technical-services assets, and up to 16 stores.
- 2008
Retail 2.0 is introduced
[1]CompUSA announced a store concept intended to combine online shopping convenience with physical retail.
- 2007
Large-scale store liquidation begins
[1]CompUSA announced the closure and liquidation of 126 stores as part of a broad restructuring.
- 2007
Specialty Equity acquires CompUSA
[1]Gordon Brothers affiliate Specialty Equity acquired the business during the restructuring and disposition process.
- 2005
CompUSA Network loyalty program launches
[1]The company introduced a points-based customer loyalty program.
- 2003
Good Guys is acquired
[1]CompUSA acquired the consumer-electronics retailer Good Guys.
- 2000
CompUSA becomes privately held
[1]Grupo Sanborns acquired 85 percent of the company, taking it private.
Products and positioning
A mass-market technology superstore combining broad computer and consumer-electronics selection with technical services, installation, support, and business-oriented technology assistance.
Computers · 1984
Personal computers
CompUSA's core assortment included desktop and notebook computers from major manufacturers, supported by related peripherals, software, accessories, and technical assistance. The stores were structured around the idea that consumers and small businesses could compare systems and purchase much of a complete computing setup in one visit.
Computer hardware · 1984
Computer components and peripherals
The retailer sold components and accessories such as monitors, printers, storage devices, networking products, cables, input devices, and other peripherals. This category served both first-time buyers and customers upgrading or repairing existing systems.
Consumer electronics · 2006
Consumer electronics and home entertainment
CompUSA expanded beyond traditional computer retail into televisions, high-definition equipment, home-theater products, and related consumer electronics. A 2006 rollout placed dedicated home-entertainment merchandise in a number of stores as management sought to broaden the chain's appeal.
Technology services · 1993
Technical services
CompUSA offered installation, repair, support, and other technical services, including services delivered at customer locations. Its TechPro operation formed part of the service business later transferred or sold during the 2008 restructuring.
E-commerce · 1996
CompUSA.com
CompUSA.com extended the retailer's product catalog online and was later operated by Systemax alongside physical stores. The online channel was central to the company's Retail 2.0 strategy, although it did not prevent the collapse of the historic store network.
Marketing campaigns
- 2006Home Entertainment rollout
United States · Puerto Rico
CompUSA introduced expanded home-entertainment departments in 40 stores, offering high-definition televisions and home-theater equipment as part of a strategy to diversify beyond computers.
Outcome. The rollout represented a strategic repositioning during the company's broader retrenchment, but it did not reverse the subsequent store closures.
- 2005CompUSA with Good Guys Inside
California · Hawaii
Following the Good Guys acquisition, CompUSA marketed selected California and Hawaii locations as “CompUSA with Good Guys Inside,” combining the CompUSA retail identity with Good Guys consumer-electronics expertise.
Outcome. The format accompanied the conversion and closure of Good Guys locations and was used to compete more directly in consumer electronics.
- 1990P.C. Modem radio campaign
United States
CompUSA ran a long-running radio advertising campaign built around the P.C. Modem character, played by actor Jack Riley. The campaign presented computer retail in a recognizable mass-market entertainment format.
Outcome. The campaign became one of the brand's identifiable advertising features, although its overall commercial effect is not quantified in the available material.
Brand decisions
2012
Retirement of the CompUSA storefront identityStrategyBackground
Systemax operated CompUSA and Circuit City assets alongside TigerDirect and sought to simplify its retail branding.
Action taken
Systemax announced that the CompUSA and Circuit City storefronts and websites would be consolidated under TigerDirect.
Aftermath
The announcement marked the end of CompUSA's historic identity as a Systemax retail chain.
2008
Retail 2.0 omnichannel conceptStrategyBackground
After Systemax acquired the brand and a small number of stores, CompUSA sought to connect physical retail with the convenience of online shopping.
Action taken
The company announced Retail 2.0 and opened a concept store at the Dadeland location in Miami, Florida.
Aftermath
The concept did not restore the former national chain, which was ultimately consolidated under TigerDirect in 2012.
2007
Large-scale store closure and restructuring planStrategyBackground
CompUSA faced intense competition, store saturation, underperforming locations, outdated layouts, and changing consumer shopping habits.
Action taken
Management announced the closure and liquidation of 126 stores, major expense reductions, corporate restructuring, and a reported $440 million cash infusion.
Aftermath
The store base fell to less than half its previous size, and the company was subsequently sold to Specialty Equity.
Cash infusion. $440 million (2007 restructuring)
2006
End of the CompUSA Network rewards programStrategyBackground
CompUSA reviewed the loyalty program after suspending sales of membership cards and examining customer retention and awareness among infrequent visitors.
Action taken
The company ended the program and offered coupons for remaining reward value, with refunds available under stated conditions.
Aftermath
The program was discontinued during a period of broader operational pressure and store rationalization.
Recent events
- 2018
CompUSA intellectual property is leased to DealCentral[1]
Other
DealCentral leased CompUSA intellectual property and announced an intended relaunch of CompUSA.com.
- 2013
CompUSA intellectual property is sold to JASALI 645 Realty[1]
M&A
CompUSA intellectual-property assets were sold to JASALI 645 Realty LLC after the end of Systemax's use of the historic storefront brand.
- 2012
Systemax consolidates CompUSA and Circuit City under TigerDirect[1]
M&A
Systemax announced that it would discontinue the CompUSA and Circuit City storefront identities and operate the remaining businesses under the TigerDirect name.
- 2008
Systemax acquires the CompUSA brand and remaining stores[1]
M&A
Systemax acquired the CompUSA name, trademarks, e-commerce business, technical-services assets, and as many as 16 retail locations.
- 2007
CompUSA announces major store closures and restructuring[1]
Other
The retailer announced the closure and liquidation of 126 stores, citing performance, store layouts, strategic suitability, and market saturation. The plan included a reported $440 million cash infusion and broad expense reductions.
- 2007
Specialty Equity acquires CompUSA during restructuring[1]
M&A · Bankruptcy
Specialty Equity, an affiliate of Gordon Brothers Group, acquired CompUSA as the chain proceeded through store sales, liquidations, and a disposition process.
- 2006
CompUSA suspends its loyalty-program membership sales[1]
Other
The company suspended sales of CompUSA Network membership cards while reviewing the program's effect on customer retention and awareness.
- 2006
CompUSA ends the Network Rewards program[1]
Other
CompUSA terminated its loyalty-rewards program and offered customers coupons or refunds for remaining value under stated program conditions.
Sources1 sources
Cite this profile: Cite the canonical profile. /brand-wiki/compusa · Editorial policy · How profiles are compiled