US retail problems

US computer retailers are suffering in all sectors with various chains shutting stores, closing down, or reporting sales drops.

Software specialist Egghead is closing six stores and has revealed its second-quarter net loss grew to $4.6 million from $3.5 million a year ago as same store sales fell 22.2%. (see News Plus page 8)

Educational chain Teach and Play Smart will sell off its stock and shut down at the end of the year. The five-store chain, which carried 700 software titles, achieved an average turnover of $2 million per store but needed $2.5 million to survive.

Best Buy, which trades from 45,000 - 58,000 sq ft sheds, has suffered a 15% drop in sales across its stores. It has cut back its expansion plans for next year from 20 - 25 new outlets to 15.

Neostar, the parent of software specialists Babbages and Software Etc, has filed for bankruptcy. Senior managers have left the group and the chains are not taking delivery of new stock.