ComputerLand
Encyclopedia
ComputerLand was a widespread chain of retail computer stores during the early years of the personal computer
"revolution", and was one of the outlets 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.
ComputerLand was founded by 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 Apples) 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. Advertisement for Preview Opening of a Computer Shack store at 22634 Foothill Blvd, Hayward, CA, He then moved rapidly to set up franchising. The first franchisee was in Morristown, New Jersey, and was rapidly followed by a chain across the US.
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 has passed.
In 1987, Millard sold ComputerLand to E.M. Warburg, Pincus & Co.
for US
$200 million.
"Vanstar" was the name selected for the ComputerLand corporate sales (Pleasanton, California
) in 1994 after the sale of split-off franchisor to Merisel. ComputerLand was defunct in February 1999 when, due to financial reporting which caused a steep decline in share price, they were purchased by one of their competitors, Inacom
Corporation. Inacom itself ceased operations completely in 2000.
Personal computer
A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...
"revolution", and was one of the outlets chosen to introduce the IBM PC
IBM PC
The IBM Personal Computer, commonly known as the IBM PC, is the original version and progenitor of the IBM PC compatible hardware platform. It is IBM model number 5150, and was introduced on August 12, 1981...
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.
ComputerLand was founded by William H Millard
William Millard
William "Bill" Millard was the founder of IMS Associates, makers of the IMSAI series of computers and the electronics retailer ComputerLand.He is credited as the "father" of modern computer retailing. He is also been called one of the world's most elusive tax exiles.William H. Millard worked for...
. In 1974 he launched a company, IMS Associates, Inc.
IMS Associates, Inc.
IMS Associates, Inc., or IMSAI, was a microcomputer company, responsible for one of the earliest successes in personal computing, the IMSAI 8080. The company was founded in 1973 by William Millard and was based in San Leandro, California. Their first product launch was the IMSAI 8080 in 1975. One...
, 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
Popular Electronics
Popular Electronics was an American magazine started by Ziff-Davis Publishing in October 1954 for electronics hobbyists and experimenters. It soon became the "World's Largest-Selling Electronics Magazine". The circulation was 240,151 in April 1957 and 400,000 by 1963. Ziff-Davis published Popular...
). 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
MicroAge
MicroAge was an American technology sales company based in Tempe, Arizona, United States. It was founded in 1976 by Jeffrey D. McKeever and Alan P. Hald as a hobby computer store named The Byte Shop. MicroAge expanded from a retail storefront to the most widely known franchiser in the computer...
was selling its first few Apples) 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
Hayward, California
Hayward is a city located in the East Bay in Alameda County, California. With a population of 144,186, Hayward is the sixth largest city in the San Francisco Bay Area and the third largest in Alameda County. Hayward was ranked as the 37th most populous municipality in California. It is included in...
, with the then-revolutionary concept of providing a "full service" store, offering under one roof all that the customer needed to support their PCs. Advertisement for Preview Opening of a Computer Shack store at 22634 Foothill Blvd, Hayward, CA, He then moved rapidly to set up franchising. The first franchisee was in Morristown, New Jersey, and was rapidly followed by a chain across the US.
It set a pattern that dominated PC retailing for the next decade. By the time IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
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 has passed.
In 1987, Millard sold ComputerLand to E.M. Warburg, Pincus & Co.
Warburg Pincus
Warburg Pincus, LLC is an American private equity firm with offices in the United States, Europe, Brazil and Asia. It has been a private equity investor since 1966...
for US
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
$200 million.
"Vanstar" was the name selected for the ComputerLand corporate sales (Pleasanton, California
Pleasanton, California
Pleasanton is a city in Alameda County, California, incorporated in 1894. It is a suburb in the San Francisco Bay Area located about east of Oakland, and west of Livermore. The population was 70,285 at the 2010 census. In 2005 and 2007, Pleasanton was ranked the wealthiest middle-sized city in...
) in 1994 after the sale of split-off franchisor to Merisel. ComputerLand was defunct in February 1999 when, due to financial reporting which caused a steep decline in share price, they were purchased by one of their competitors, Inacom
Inacom
Inacom Corporation was created in 1991 from the merger of ValCom Inc. and Inacomp Computer Centers Inc.In 1997, Inacom entered the Fortune 500 list at position 436 and remained a Fortune 500 company until 2000....
Corporation. Inacom itself ceased operations completely in 2000.
Further reading
- David Mercer, "IBM: How the World's Most Successful Corporation is Managed", Kogan Page 1987 http://futureobservatory.dyndns.org/2013.htm
- http://www.old-computers.com/history/detail.asp?n=25&t=2