I guess you don't shop too much online.
case in point; I wanted a new Logitech Marble Mouse. Staples and CompUSA has them for $60+tax, online the average price you pay is under $50-notax including 2-day shipping. I drive past both stores on the way home from work each day, yet ordered from my desk and saved $10. Sure, If I wanted and nickel and dime items I'd stop in, but those kinds of things are not enough to keep these retail operations in business for much longer, especially with places like OutPost.com offerring free overnight shipping on many items to help drum up new business. you should see a lot more Etailers doing gimmicks like that to help attract new and repeat customers away from CompUSA.
I love CompUSA, but would I invest in it's future? No way!
if the Staples gossip helps make it an event trade, I may
get in and out on these rumors, but I would not expect them
to overpay for CompUSA despite it's industry leader status.
Staples was willing to overpay for a rival to illiminate a
competitor, and potential increase it's margins and penetration
in the longer run. Here they are buying a diversification
that they are already handling quite well on their own. And
they are buying them for CPU's distressed pricing and position
in the marketplace, and not because they really think there
is dynamic growth and profits to be made here, IMHO. If you
have looked in most Office Supply catalogues of late, they are
full of Computer stuff, so the lines have blurred between these
two Retail operations, and Staples is simply capitolizing on
that fact; as buying a laser printer and toner is as simple and
cheap a decision as buying a new stapler and staples.
If you think Staples will pay much more than what CPU is trading
for currently, think again. Just look what happened over at the
WCOM and SKYT threads, and you'll see what I mean. |
