imported>DigitalIceAge: added Category:Defunct computer companies based in California using HotCat

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added Category:Defunct computer companies based in California using HotCat

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			[[Category:Defunct computer companies based in California]]

imported>Ylee: /* History */ 1983 status

2025-06-05T16:00:47Z

History: 1983 status

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{{Short description|American computer retailer}}
{{sources|date=September 2016}}
{{Infobox company
| name = ComputerLand
| logo = ComputerLand wordmark.svg
| type = Computer store
| industry = Retail
| former_name = Computer Shack (1976–77)
| founded = {{Start date and age|1976}} in [[Hayward, California]]
| founder = [[William Millard (businessman)|William H. Millard]]
| defunct = {{End date|1999}}
| fate = Dissolved
| hq_location_city = Hayward, California
| hq_location_country = United States
| num_employees =
| num_employees_year = 
| parent =
}}
'''ComputerLand''' was a widespread chain of retail computer stores during the early years of the [[microcomputer revolution]], and was one of the outlets (along with [[Computer City]] and [[Sears]]) chosen to introduce the [[IBM PC]] in 1981. The first ComputerLand opened in 1976, and the chain eventually included about 800 stores by 1985. After this time the rapid [[commoditization]] of the PC led to the company's downfall, with most of the retail locations closing by 1990. The company officially ended in February 1999.

==History==
[[File:ComputerLand Ad July 1977.jpg|thumb|right|The name changed from Computer Shack to ComputerLand in this July 1977 advertisement.]]
[[File:Cromemco and ComputerLand sign deal for C-10 distribution (1983).jpg|thumb|left|ComputerLand founder, [[William Millard (businessman)|William H. Millard]], looks on as ComputerLand's [[Cromemco]] distribution agreement is finalized in 1984 (L to R: Cromemco President [[Harry Garland]], Computerland President Ed Faber, ComputerLand Chairman William H. Millard, Cromemco Vice President and co-founder [[Roger Melen]]]]

ComputerLand was founded by [[William Millard (businessman)|William H. Millard]]. In 1974 he launched a company, [[IMS Associates, Inc.]], to build what was claimed to be the first truly integrated personal computers, sold as kits to hobbyists and the rapidly growing numbers of retailers (through small ads in ''[[Popular Electronics]]''). The computer, the [[IMSAI 8080]], may not have made Millard's fortune, but his resulting experiences with the inexperienced and under‑capitalized retailers did. In 1976 (at the same time as the [[Byte Shop]] was selling its first few [[Apple II]] computers) he asked his Sales Director, Ed Faber (an ex‑IBM Manager), to start a new franchise operation, soon to become ComputerLand.

Faber first designed a pilot store, at [[Hayward, California]], with the then-revolutionary concept of providing a "full service" store, offering under one roof all that the customer needed to support their PCs.<ref name = "Daily Review Dec 20 1976">{{Cite news | title = The Total Experience Computer Store, Computer Shack | newspaper = Daily Review | location = Hayward, California | page = 10 | date = December 20, 1976}} Advertisement for Preview Opening of a Computer Shack store at 22634 Foothill Blvd, Hayward, CA,</ref><ref name = "Daily Review Dec 21 1976">{{Cite news | title = Computer Shack opens first store in Hayward | newspaper = Daily Review | location = Hayward, California | page = 6 | date = December 21, 1976}}</ref> The original name, Computer Shack, changed after opposition from [[Radio Shack]].{{r|InfoWorld Apr 1, 1985}} The renamed ComputerLand began franchising. The first franchisee was in Morristown, New Jersey, and was rapidly followed by a chain across the US.
[[File:Grote winkel met computerapparatuur geopend aan het Leidsebosje in Amsterdam ex, Bestanddeelnr 933-1005.jpg|thumb|ComputerLand storefront in [[Amsterdam-West]], 1984]]

Each store paid a 8% [[franchise fee]] and purchased 85-90% of its products from ComputerLand, which sold products at cost to the stores. The company kept small inventories of products, focusing on sales and marketing as opposed to product selection or training.<ref name="rosen19830222">{{Cite news |date=1983-02-22 |title=Appendix I; Some stories behind the statistics |url=https://cdn.oreillystatic.com/radar/r1/02-83.pdf |access-date=2025-06-05 |work=[[The Rosen Electronics Letter]] |pages=11-21}}</ref> It set a pattern that dominated PC retailing for the next decade. By the time [[IBM]] arrived on the scene, the network of branches, all run by franchisees, had grown to 190 in number. By the end of 1985, when Millard retired, there were some 800 branches (including some 200 outside the US) and he had become one of the computer billionaires.

Most ComputerLand stores succumbed to the predation of the "box-shifters" in the price wars of the latter 1980s, after the peak had passed.<ref name = "InfoWorld Aug 13, 1990">{{Cite magazine| last = Dryden | first = Patrick | title = Computerland Adds Services, Encourage More LAN Focus |magazine= InfoWorld | volume = 12 | issue = 33 | page =34 | date = August 13, 1990 | url = https://books.google.com/books?id=OjwEAAAAMBAJ&pg=PA24 | issn = 0199-6649}}</ref> In 1987, Millard sold ComputerLand to [[Warburg Pincus|E.M. Warburg, Pincus & Co.]] for [[United States dollar|US]]$200 million.<ref name ="InfoWorld Apr 1, 1985">{{Cite magazine | last = Bannister | first = Hank | title = Old Loan Costs Mogul Millions |magazine= InfoWorld | volume = 7 | issue = 13 | page =19 | date = April 1, 1985 | url = https://books.google.com/books?id=0C4EAAAAMBAJ&pg=PA19 | issn = 0199-6649}}</ref><ref name = "InfoWorld Oct 7, 1985">{{Cite magazine | last = Burke | first = Steven | title = Millards Resigns as Faber Takes Over Computerland |magazine= InfoWorld | volume = 7 | issue = 40 | page =12 | date = October 7, 1985 | url = https://books.google.com/books?id=jC8EAAAAMBAJ&pg=PA12 | issn = 0199-6649}}</ref><ref name = "InfoWorld Jun 15, 1987">{{Cite magazine | last = Parker | first = Rachel | title = Computerland's New Owners Maintain Firm's Market Focus |magazine= InfoWorld | volume = 9 | issue = 24 | page =31 | date = June 15, 1987 | url = https://books.google.com/books?id=xTAEAAAAMBAJ&pg=PA31 | issn = 0199-6649}}</ref>

In 1993, [[Merisel]], a competitor company, announced it would purchase the ComputerLand name and all franchise holdings and its Datago aggregation division for $110 million.<ref name=SeattleTimes>{{cite news|title=Computerland Merisel Reach Franchise Pact|url=https://archive.seattletimes.com/archive/19930925/1722797/computerland-merisel-reach-franchise-pact|newspaper=Seattle Times|access-date=24 May 2013}}</ref><ref name=NewYorkTimes>{{cite news|title=COMPANY NEWS; MERISEL TO PURCHASE A COMPUTERLAND DIVISION|url=https://www.nytimes.com/1993/09/25/business/company-news-merisel-to-purchase-a-computerland-division.html|newspaper=New York Times|accessdate=24 May 2013}}</ref> The new Merisel ComputerLand unit was operated by the then-president of Computerland's franchise and distribution business, Martin Wolf.<ref name=LATimes>{{cite news|last=Harmon|first=Amy|title=PC Wholesaler Merisel to Acquire Computerland Distribution Outlets : Competition: The deal could raise fears among other retailers that the company will favor its franchisees over them.|url=https://www.latimes.com/archives/la-xpm-1993-09-25-fi-38908-story.html|newspaper=LA Times|access-date=24 May 2013}}</ref> The following year, "Vanstar" was selected as the name for the ComputerLand corporate company-owned stores stemming from the Nynex acquisition. ([[Pleasanton, California]]) after the sale of split-off franchisor to Merisel.<ref name=NewYorkTimes2>{{cite news|last=Fisher|first=Lawrence|title=COMPANY NEWS; Computerland, Now Vanstar, Shifts Focus|url=https://www.nytimes.com/1994/03/22/business/company-news-computerland-now-vanstar-shifts-focus.html|newspaper=New York Times|accessdate=24 May 2013}}</ref><ref name ="Network World Mar 28, 1994">{{Cite journal | last = Burns | first = Christine | title = ComputerLand drops name and retail stores become service giant | journal = Network World | volume = 11 | issue = 13 | page =24 | date = March 28, 1994 | url = https://books.google.com/books?id=aBAEAAAAMBAJ&pg=PA24 | issn = 0887-7661}}</ref>

In 1997 Synnex Information Technologies, a national distributor of microcomputers and communication, networking, peripheral and storage products, purchased substantially all the assets of Merisel FAB Inc., including the ComputerLand franchise. Synnex created ComputerLand Corporation, a wholly owned subsidiary of Synnex, consisting of the ComputerLand and Datago businesses.<ref name = "Bloomberg News Release March 31, 1997">{{cite journal | last=News | first=Bloomberg | title=SYNNEX ACQUIRES COMPUTERLAND AND DATAGO FROM MERISEL | website = Bloomberg.com | date = March 31, 1997 | url=https://www.bloomberg.com/article/1997-03-31/a1VGKXM6K0vs.html}}</ref>

On October 9, 1998, Inacom purchased Vanstar for a reported $465 – $480 million. The resulting company employed nearly 12,000 and was estimated to generate $7 billion in revenue.
The acquisition of Vanstar reportedly added a large amount of debt, and it has been said that Inacom overpaid for a company of that size. Vanstar had 43.26 million shares outstanding at the time the deal was struck, and shareholders of Vanstar received .64 shares of ICO for each VST share in a stock swap deal, thus the issuance of 27.7 M shares of stock effectively more than doubled the number of outstanding shares while also being dilutive to the existing shares. This, plus debt concerns, led to a decline in the price of Inacom's stock.

[[Inacom]] Corporation ceased operations completely in 2000.<ref name = "CNY Business Journal June 30, 2000">{{Cite journal | last = Dickinson | first = Casey | title = InaCom Corp. Files Chapter 11 | journal = CNY Business Journal | date = June 30, 2000 | url = http://findarticles.com/p/articles/mi_qa3718/is_200006/ai_n8915798/}}</ref>
Although the corporate ComputerLand ceased operations [VanStar], many former franchises continue to operate today as independently owned computer businesses under the ComputerLand name.

==References==
{{Reflist}}

==Further reading==
*David Mercer, "IBM: How the World's Most Successful Corporation is Managed", Kogan Page 1987 [https://web.archive.org/web/20061003095223/http://futureobservatory.dyndns.org/2013.htm]
*{{cite book | last =Littman | first =Jonathan | title =Once Upon a Time in ComputerLand: The Amazing, Billion-Dollar Tale of Bill Millard | publisher = Price Stern Sloan | year =1987 | location =Los Angeles | isbn =0-89586-502-5}}
*https://www.old-computers.com/history/detail.asp?n=25

==External links ==
*[http://www.computerland.fr ComputerLand in France near Paris]
* [http://www.computerland.be COMPUTERLAND Belgium]
*[http://www.chicagocomputerland.com Chicago ComputerLand]
*[http://www.cland.com ComputerLand of Silicon Valley]
*[http://www.computerlandwoodbridge.com ComputerLand of Woodbridge]
*[http://www.computerlandottumwa.com ComputerLand Ottumwa]
*[http://www.computerlandsavannah.com ComputerLand Savannah]
*[http://www.etccomputerland.com ETC ComputerLand]
*[http://www.computerlandberkeley.com ComputerLand of Berkeley]

[[Category:Defunct computer hardware companies]]
[[Category:Companies based in Hayward, California]]
[[Category:Defunct companies based in the San Francisco Bay Area]]
[[Category:Retail companies based in California]]
[[Category:Defunct computer companies of the United States]]
[[Category:Warburg Pincus companies]]

ComputerLand - Revision history

imported>DigitalIceAge: added Category:Defunct computer companies based in California using HotCat

imported>Ylee: /* History */ 1983 status