ComputerLand
| Company type | Private |
|---|---|
| Industry | Computer retail |
| Founded | 1976 |
| Founder | William H. Millard |
| Defunct | February 1999 |
| Fate | Ceased operations; brand acquired and franchises continued independently |
| Headquarters | Hayward, California , United States |
| Products | Personal computers and related products |
ComputerLand was a leading retail computer chain during the initial surge of the microcomputer era and among the first retailers to offer the IBM PC when it debuted in 1981. Established in 1976, the company expanded rapidly, reaching around 800 outlets by 1985. Nevertheless, intense commoditization within the PC market caused most locations to shut down by 1990, with the corporation officially ceasing operations in February 1999.
History
The origin of ComputerLand traces back to William H. Millard, who had earlier founded IMS Associates, Inc. in 1974 to market personal computer kits such as the IMSAI 8080. Leveraging this background, Millard assigned Sales Director Ed Faber in 1976 to develop a franchise system, resulting in the opening of the inaugural store in Hayward, California. Initially called Computer Shack, the name was swiftly changed to ComputerLand after objections from Radio Shack. The company introduced a pioneering "full service" retail approach that combined extensive PC support within a single location.
Franchise owners paid an 8% royalty fee and acquired the majority of their inventory (approximately 85-90%) directly from ComputerLand at cost price. The firm concentrated its efforts on sales and marketing rather than managing stock or providing training. By the time IBM launched its PC, ComputerLand had expanded to 190 franchises; by Millard’s departure in 1985, the network had grown to about 800 stores globally, elevating Millard to billionaire status within the computing sector.
Facing fierce pricing pressure from high-volume resellers known as "box-shifters" during the late 1980s, the chain encountered significant challenges. In 1987, Millard sold ComputerLand to E.M. Warburg, Pincus & Co. for $200 million.
In 1993, competitor Merisel purchased the ComputerLand brand, its franchises, and the Datago division for $110 million under Martin Wolf’s leadership. The subsequent year saw corporate-owned stores rebranded as Vanstar following acquisition by Nynex.
By 1997, Synnex Information Technologies acquired most of Merisel FAB Inc.’s assets, including ComputerLand franchises, creating ComputerLand Corporation as a subsidiary of Synnex.
On October 9, 1998, Inacom completed a purchase of Vanstar for an estimated $465–480 million, forming an enterprise with nearly 12,000 employees and approximately $7 billion in revenue. This transaction increased Inacom’s debt substantially and diluted its shares due to a stock exchange involving Vanstar’s outstanding stock. These financial pressures contributed to a drop in Inacom’s market value.
Inacom ultimately ceased all operations in 2000.
Although corporate ComputerLand dissolved alongside Vanstar’s closure, numerous former franchisees still operate independently under the ComputerLand name today.
Further reading
- David Mercer, "IBM: How the World's Most Successful Corporation is Managed", Kogan Page 1987 [1]
- Jonathan Littman, Once Upon a Time in ComputerLand: The Amazing, Billion-Dollar Tale of Bill Millard, Price Stern Sloan, 1987, Los Angeles, ISBN 0-89586-502-5
- https://www.old-computers.com/history/detail.asp?n=25