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Report: TigerDirect Closing Physical Retail Stores, Focusing on B2B Sales

TigerDirect, one of the few hardware stores that had a brick and mortar presence in the market, is closing its retail stores by the end of the second quarter of 2015.

According to a press release from its parent company Systemax, Systemax Chairman and CEO Richard Leeds said that TigerDirect wants to focus on a business-to-business and public sector customer approach.

“These actions will include the exit of substantially all retail store operations; closing a distribution center; and implementing a general workforce reduction to realign our resources solely with our B2B focus. We have engaged Gordon Brothers to assist with the retail store process and anticipate that all of these actions will be completed by the end of the second quarter."

The news was further confirmed on Reddit, where a TigerDirect employee from southwest Florida posted details from a meeting. According to the post, the company is closing a majority of the stores, with only stores in Miami, Florida; Puerto Rico; Jefferson, Georgia; and an unnamed fourth location remaining open.

I also called up the nearest TigerDirect stores in the area in Vernon Hills, Illinois and Hoffman Estates, Illinois. Both were closed today. Bargain sales and markdowns start today at the remaining open stores, but it's still unclear as to how long those stores will have until they close their doors for good.

The closing of TigerDirect's brick and mortar stores seems inevitable when looking at the shift in online shopping in just the last few years. When it comes to buying PC hardware, most people will buy from Newegg and other online retailers (including TigerDirect). Gone are the days when you physically went to a shop and held each part in your hand before making a purchase.

It's still unknown as to how the elimination of retail stores will affect TigerDirect's online sales, but considering the closings it could be surviving by a thread.

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  • Bondfc11
    Funny I never knew they had brick and mortar stores!
    Reply
  • Bondfc11
    The comment in the article about holding the part in your hand is so true. However, I think at this point the parts have been around so long that the change from a GTX770 to a GTX 970 is all internal - that part is the part if that makes sense.

    Back in the day I would love to go to Fry's and do that part holding thing. However, these many, many moons later I would rather order it online and have it here in 2 days via Amazon Prime.
    Reply
  • balister
    The Jefferson Georgia store is a warehouse with a store front (if you've driven from SC to Atlanta, you'll see it on the south side of the interstate).
    Reply
  • voodoochicken
    This is funny because around here Tiger, which took over what was left of CompUSA, started reopening Comp's old stores, only to shutter them again.
    Reply
  • InvalidError
    Large-surface stores are expensive to operate. I expect Amazon's pick-up/drop-off points scheme to gain popularity: only need enough space to store items that are in transit between vendor and buyer, little to no on-site inventory waiting for sales.
    Reply
  • dstarr3
    Well, great. Now I don't have any local stores that sell enterprise hard drives. Now I've got to ship them all and risk damage. Sigh.
    Reply
  • spdragoo
    Have to agree with Bondfc11, never even knew TigerDirect even had brick-and-mortar; I thought they were online-only like Newegg.

    At least I have Micro Center close by.
    Reply
  • soccerplayer88
    Well, great. Now I don't have any local stores that sell enterprise hard drives. Now I've got to ship them all and risk damage. Sigh.

    Well it's not like they aren't ship to that brick and mortar store to begin with. Or are you implying that TigerDirect stores manufacture HDDs onsite?
    Reply
  • iam118
    I would assume the Naperville, IL store would stay open as well since its also a warehouse store...

    Not surprised to see they're closing. Their stores have gone to shit the last few years and I've stopped shopping there and instead go to Micro Center who have a better selection in store AND almost always better prices than Tiger Direct and many times New Egg as well.
    Reply
  • thundervore
    I never knew they had Brick and Mortar stores until one night while I was in Tampa going down North Dale Mabry Highway and had to stop by Wawa to get gas. I thought i was just drunk and seeing things lol

    I never shopped there anyway.
    Always had to pay shipping and prices were higher than other online stores. Even if they matched Newegg prices there, Newegg offered free shipping and they didn't. Then there was the sales tax which I do not pay at Newegg
    Reply