Computer retailers reconfigure to meet demand shifts; revenue takes a jump as market undergoes changes.

Sales revenue at Los Angeles County's largest computer retailers increased 75 percent in 1992 to almost $700 million, according to data in this week's List (see page 22).

The increase from 1991 sales was due in large part to the local industry's biggest player splitting into two separate operations and each boosting revenue significantly above the previous year's total.

In addition, sales of personal computers to individual consumers continued to rise, more than making up for the loss of corporate and commercial business that declined because of the recession and cuts in the local defense industry.

In this week's List, the 25 largest computer retailers are ranked by 1992 sales revenue in Los Angeles County and reflect a realignment of the top companies brought on by the local break-up of industry giant ComputerLand Corp.

In last year's List, which was based on 1991 sales, ComputerLand InfoSystems was the largest retailer in the county with local revenue of $105 million. Last June, however, the local franchise operation of ComputerLand, known as InfoSystems, broke away from the corporation and formed its own company that now operates as InfoSystems Computer Centers Inc.

Based on information provided by the companies, the largest retailer in the county is now InfoSystems, which in 1992 reported local revenue of almost $116 million.

ComputerLand Corp. fell to fourth place with countywide revenue of $63.5 million and $1 billion companywide.

Other changes in the top 10 include the appearance of Comp USA, which was not on last year's List but is in second place in this year's rankings, and the disappearance of Omnivar. Glendale-based Omnivar was ranked sixth on last year's List but has since gone into bankruptcy.

All the shifts in rankings reflect the ever- and fast-changing nature of the computer retail business, said local industry experts. New companies and outlets are constantly opening and often closing, and many established operations are merging or, as in the case of ComputerLand and InfoSystems, splitting apart, the local experts said.

"It's a constantly changing business," said Asif Hudani, president of InfoSystems in Torrance. "There are mergers and acquisitions and consolidations going on all the time."

Another top retailer, Isaac Cohen, vice president of No. 6 First Computer in Westwood, said the changes among retailers reflect the nature of the computer business.

"You have to be able to move quickly," Cohen said. "When you get a new product, you basically have about three or four weeks to move on it or some other product comes along and you've lost out. Competition among manufacturers is very intense and so is competition among resellers."

Computer retailers are also called resellers.

Homi Shamolian, president of Glendale-based Computer Palace, said despite the apparent early success of InfoSystems, it is becoming increasingly difficult for a small retailer to survive.

"With the superstores moving into Southern California and because there are low profit margins and lots of overhead in computer stores, it's becoming very hard for the independents to make it," he said.

"What we are trying to do, which the big stores can't, is offer good service to the end user," Shamolian said.