CompUSA Stores to Have Apple Boutiques

In an effort to boost its lagging retail sales, Apple Computer Inc. said Tuesday that it plans to create a “store within a store” at all 139 CompUSA retail computer outlets nationwide.

CompUSA unveiled its prototype mini-store in Pleasanton on Nov. 1. The Dallas-based retailer will roll out more than 40 Apple mini-stores in selected markets--including all 16 CompUSA stores in Southern California--in time for the holidays. Within the next three to five months, all CompUSA stores will feature an Apple boutique, a spokeswoman said.

The move by Apple is an attempt by the embattled Cupertino-based company to regain lost market share. Despite the surging demand for personal computers, Apple has seen sales of its Macintosh computers overtaken by PCs powered by Intel Corp. microchips and running Microsoft Corp.’s Windows operating system. Mitch Mandich, Apple’s senior vice president of the Americas, acknowledged that the company hasn’t focused enough on retail sales in recent years. Retail accounts for about 15% of Apple sales. Fifty percent of the company’s sales are to educational consumers.

That lack of attention was evident at CompUSA, where customers are greeted with “two lonely Macintoshes at the end of a long shelf,” Mandich said. In addition, salespeople were often not versed in Macintosh products or promotions.

But with the new Apple boutiques, such as the 1,000 square-foot prototype in Pleasanton, customers will have access to an expanded selection of Apple products and compatible peripherals, along with computers running demo programs. Specially trained CompUSA salesclerks will wear shirts identifying them as Macintosh experts.

If the concept is successful, Apple plans to expand the mini-stores to other retailers, such as Fremont-based Fry’s Electronics, Mandich said.

Apple shares rose 56 cents to close at $17.94 on Nasdaq. CompUSA stock was unchanged at $35 on the New York Stock Exchange.