Merisel gears sales operation to changing market: reorganization reflects new computer distribution ways.

Merisel Inc., which touts itself as the world's largest publicly held distributor of computers and computer software, has reorganized its sales department.

Officials of El Segundo-based Merisel said the reorganization could produce 100 or more new jobs in its worldwide workforce of 2,000, and is necessary because of changes in the distribution network for computer hardware and software.

A primary part of the reorganization is the creation of a sales unit that will service mass merchandisers of computers and computer software. One of the major changes in the computer industry during the last 18 months is that traditional retail sellers are often being bypassed in the distribution network.

The reorganization at Merisel reflects those changes, which has basically means that computer retail stores no longer have an almost exclusive hold on the market, said industry analysts.

"Over the last year to 24 months, end users (individual or commercial buyers and users of computers) have started looking for different places to make their purchases," said Michael Gumbert, vice president of sales at Merisel. "One of those places for individual home users and small businesses to buy computers now is the big merchandisers like department stores, or warehouse stores or places like K mart that are now selling computers and software."

With its new consumer products sales division, Merisel will help large merchandisers select and maintain a computer hardware and software inventory to be sold at the retail stores.

Industry analysts noted that Merisel has divided its previously linear sales department into three divisions that specialize in different markets created as the distribution network has changed.

As a computer hardware and software distributor, Merisel gets products from manufacturers to the businesses that actually sell them to users.

For instance, Merisel recently struck a deal with IBM Corp. in which Big Blue will take orders for computer hardware and software direct from users. Merisel will distribute and ship the products to the users.

"What Merisel has done," said Robert Anastasi, an industry analyst and senior vice president of research at Robinson-Humphrey Co. Inc. in Atlanta, "is an offensive move, not a defensive one. It's a rapidly changing industry and Merisel is adapting to those changes."

Last year Merisel reported revenue rose to $2.2 billion from $1.5 billion in 1991, as net income increased to $19.7 million from $10.8 million.

Last week, Merisel's stock was trading on the over-the-counter market in the $12.36 per share range compared to a 52-week high of $13 and a low of $6.60.

Before the reorganization, Merisel had just a vertical sales department but it has been compartmentalized into three different divisions, said company officials. In turn, those three divisions have been further broken down into a total of nine smaller units that specialize in certain markets, said company officials.

In addition to the new unit that services mass merchandisers, another primary new division services what are called value added resellers.

VARs are companies that put together computer systems for businesses or organizations. For instance, a reseller could be hired by ABC Corp. to computerize its office. The reseller would study ABC Corp.'s computer needs and then install a system. Merisel enters the picture because the value added reseller would buy the computer hardware and software through Merisel.

Another new division is one that sells component parts of computers to manufacturers who assemble customized office automation networks.

Heading the new divisions are Elliot Levine, who was vice president of retail sales and is now vice president of the dealer division; Robert Brennan, who heads the value added reseller division and who is new to Merisel, and Casey Hughes, vice president of the consumer division. Hughes was formerly head of consumer products for Merisel.