AM I NEXT? IS THE HANDWRITING ON THE WALL AT FRY'S ELECTRONICS (11/11/20)

Am I Next? Is the handwriting on the wall at Fry’s Electronics?

OCTOBER 20, 2020 — FRY’S CLOSES CAMPBELL, CALIFORNIA STORE, WILL REPURPOSE THE SPACE

The digital wave is rolling over Fry’s as online purchasing in the days of COVID-19 continues. Few see the need to build their own electronic devices or accessorize their existing machines.

Following the closure of their Palo Alto, California store in December, 2019 …

A notice posted on their Campbell, California store reads, “To our valued customers, our Campbell location is permanently closed as of today. Fry's will repurpose this space in the near future. We will continue to serve you at our nearby locations San Jose, Sunnyvale, and Fremont. Thank you for your continued support and business!”

Original post…

San Jose, California-based Fry's Electronics, a major retailer of software, consumer electronics, household appliances, and computer hardware, appears to be in trouble.

Since its inception, Fry’s was the place to go for electronic components, even oddball items that were needed to prototype some of Silicon Valley’s most important projects.

It was a store that catered to geeks – even to offering clean shirts and clip-on ties for emergency meetings, along with snack foods and Jolt Cola, the high-caffeine mainstays of all-night programming sessions. The company expanded to household consumer items and appliances which was viewed by many as the beginning of the end as other big retailers of electronics such as Circuit City, CompUSA, and Computer City fell by the wayside. Now we are seeing many of the same electronics items and consumer goods directly available from the manufacturers or on the internet, from Amazon or directly from China’s Alibaba. With less frequent trips to Fry’s – and then only for a quick purchase. a decline in business would be expected.

Many of Fry’s customers are reporting empty shelves and a reduced selection of merchandise. The days when Fry’s would serve as a pseudo-social center to technology-minded geeks and gamers appear to be waning.

Speculation in social media is rampant with the sharing of empty shelve pictures and sad commentaries that point to downsizing or even bankruptcy.

According to the company, the empty shelves are the result of a restructuring of the company’s business model and a shift to a “consignment” sales regime that sees vendors providing inventory and getting paid post-sale. Claiming that it takes time and 245 vendors have agreed to support the new business model, the company adamantly claims it is not going out of business. Something we have heard from other retailers who put up a brave front until they crashed and burned.

In many cases, transitioning to a consignment business model is an indication of financial difficulties.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?