Good Guys, the California A/V retailer that overextended itself in an aggressive build-up plan that maxed out at 71 stores, is not long for this world. CompUsa, which acquired the chain in 2003, closed six free-standing Good Guys stores and another five CompUSA/Good Guys megastores in late September. CompUSA will close the remaining 25 stores and three regional distribution centers within 80 days—following liquidation sales. Good Guys was started in 1973 in Alameda, CA by Ron Unkefer, using, legend has it, a $5000 loan from a friend. Buoyed by a cash infusion after a public offering, the company began its expansion plan into Oregon, Washington, and Nevada. Industry experts blame the company's years of declining sales earnings on "growing pains" from that expansion, as well as increased competition from big-box stores.In a statement to TWICE's Alan Wolf, CompUSA's president and CEO said, "The need for stand-alone high-end home entertainment retailers is declining…:as home-entertainment products become more prevalent among consumers."
Wait a minute! Did he really just say that during a period when home-entertainment systems are getting larger and more complex, consumers don't need specialists because they already have electronics products? That sounds like a cynical defense that could only come from someone who works in an industry that has commoditized its products to the point where people buy solely on price and know their credit card payments may outlast the life of their purchase. Oh, right. He's the CEO of CompUSA.So long, Good Guys—and, possibly, so long to all of us still interested in "stand-alone high-end home-entertainment retailers," if this portends the new audio retailing paradigm.
