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Top L.A. computer retailers take different approaches to success.


For Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  computer retailers, 1996 proved there's more than one way to make money.

The top two companies, as determined by computer-related revenues of L.A. County stores, have fundamentally different approaches to sales.

Florida-based Office Depot Office Depot (NYSE: ODP) is one of the world's leading suppliers of office products and services. The Company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, , with 32 outlets in L.A. County, generated $200 million in computer-related revenues the old fashioned n. 1. A cocktail consisting of whiskey, bitters, and sugar, garnished with with fruit slices and often a cherry.

Noun 1. old fashioned - a cocktail made of whiskey and bitters and sugar with fruit slices
 way: having uniformed clerks sell hardware and software to walk-in and special-order customers.

With a different approach entirely, and generating $118 million in 1996 sales, was NovaQuest InfoSystems, based in Torrance. Beyond having just a single L.A. location, NovaQuest differs from traditional retailers by functioning as a "reseller." Instead of having shops where customers come in to buy machines, NovaQuest works with businesses to supply entire information systems. No customers actually come to NovaQuest's office.

"We buy and install computers," said NovaQuest CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  Asif Hudani. Customers include the City and County of Los Angeles, the Department of Water and Power and Lockheed Martin For the former company, see .

Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta.
 Corp.

Between companies upgrading their information systems, and integrating their machines with the Internet and intranets, "we couldn't keep up with demand," Hudani said.

Individual consumers' demand for computers and related accessories also seems strong.

Fully 7 percent of Office Depot's national computer sales in 1996 came from its local stores. Office Depot officials said an L.A. computer sales figure for 1995 was unavailable, meaning that no growth rate could be computed for its $200 million sales figure for 1996.

Nationally, Office Depot's computer sales rose 17 percent last year. That's in line with a local and national trend in which office and electronics superstores are assuming an ever greater bite of the retail computer industry.

Best Buy and Circuit City, two of the largest electronics superstore chains, each saw national computer sales rise by 19 percent last year, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 a study by Computer Retail Week magazine. Total nationwide retail computer sales rose 20 percent last year, according to the magazine.

Page Computer of Los Angeles, ranked No. 5 on the List, isn't a national chain, but it's riding the swelling demand. Like NovaQuest, Page specializes in installing hardware and software for corporate clients.

"The products are available cheaper now (for the customers) than last year, so our profits per sale were lower," said Page Vice President Charlie Davis Charles Allan (Charlie) Davis (born January 1, 1944, Belmont, Port of Spain, Trinidad and Tobago) is a former West Indian cricketer who played in fifteen Tests from 1968 to 1973.

Davis started his first-class career at the age of 17, playing for Trinidad.
. "But we sold more machines because of the price drop, so overall we did OK."

Technologically, 1996 was an in-between year for the computer retail industry: The initial luster of Windows 95 had worn off, but Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking.  4.0 had not yet really caught on. Intel's Pentium chip was no longer a new kid on the block, but the more powerful Pentium Pro The sixth generation of the Intel x86 family of CPU chips. The term may refer to the chip or to a PC that uses it. Introduced in 1995 as the successor to the Pentium, models from 150 MHz to 200 MHz were released.  was not yet standard.

Amid its corporate floundering, Apple Computer Co. had few new offerings, and a much-ballyhooed Pentium MMX A Pentium CPU with added instructions for improved multimedia performance. See MMX and Pentium.  chip for multimedia processing (introduced in 1997) hadn't arrived yet.

Local competition pushed some players out of the market entirely: L.A. Tronics, closed its five stores last spring, Adray's of Los Angeles shut its nine L.A. County shops in the fall, and Tandy Corp. announced in December that it would shut seven of its Southern California Computer City shops.

Today, with the "in-between" year behind them, plenty of technological innovations hitting the shelves, and weaker competitors extinct, the remaining L.A.-area computer retailers are poised for continued growth.

"A lot of people are going to want to upgrade" to new chips and operating systems in 1997, said Davis of Page Computer. "We think it's going to be a better year for us. Whenever there's a change or something new, our sales always go up."
COPYRIGHT 1997 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Author:Sullivan, Ben
Publication:Los Angeles Business Journal
Date:Mar 17, 1997
Words:600
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