Profitable business evaporates at Systemax... make that all business growth

The year seems to be going from bad to worse for ailing tech supplier Systemax with losses widening and revenues narrowing. In calendar Q3, the reseller reported sales of $699.3m, down 15.3 per cent from $825.4m in the same period a year ago, the primary cause of this was the North America Tech Products unit. Stateside, the …

[terry 1]

SBE

As a small business supplier, I would guess that some of their losses are down to

- Adoption to 365, so who needs to buy OEM office?

- i3 / i5 machines good at what they do, no significant speed improvements over the last few years (ignoring ssds etc)

- People happy to stay on W7 on their i3 / i5s

- Reduced server HW sales since it's all going to the cloud.

I would imagine that a lot of dizzies will struggle in the future as people move to the cloud. Eventually I see all PCs will become glorified thin clients an become a throw away white good, same as a microwave.

[The Godfather]

Bring out the Oxygen

What started life as a successful 'etailer' got bloated with bits such as sub,sub distribution, a penchant for retail stores and a foray in solution sales, areas which they had no real expertise and therefore no real sustainable return.

[WolfFan]

when they closed their stores

they lost me as a client. Many is the time when I'd stop by for a hard drive or some RAM or something while on the way to somewhere important or on the way back from somewhere or another. With the stores closed, this can't happen, and in most cases Newegg has prices close enough to theirs that there's no reason to buy kit from them using the Web. Newegg has a larger choice and good enough prices. They've killed themselves.

[Captain DaFt]

Hmm...

"Stateside, the division’s turnover slumped 31.3 per cent to $276.1m, following the closure of 31 retail stores."

Wow, less stores mean fewer sales. Who would have ever guessed that?