For about three decades, Fry’s Electronics was the go-to computer store for enthusiasts, almost an Ikea of computer stores. It was a big box store, larger than Comp USA, selling not just software and pre-built computers and peripherals, but also parts, and even discrete components. So what happened to Fry’s Electronics?
The chain peaked at 34 stores in nine states. So that means a significant part of the population never got to set foot in one. But it took on mythic status thanks to computer magazines and the Internet. Byte columnist Jerry Pournelle would write about computers he built cheaply from parts he bought at Fry’s at “prices so low, they might as well have been giving it to me.”
The origin of Fry’s
Fry’s Electronics was founded in 1985, with proceeds from the sale of Fry’s supermarkets, a supermarket chain owned and operated by its founders’ father. The three of them knew a lot about the grocery business, but had no interest in it. So instead, they decided to open a grocery store-like electronics store.
Initially the store even did sell groceries, in addition to electronics supplies and components, test equipment, and computer components. You could walk into the store and buy components to build your own PC, even in the 1980s.
The store proved popular and expanded to additional locations, each with a theme. Conceptually, the closest surviving competitor would be Micro Center, although Fry’s stores tended to be larger and had a cafe. Fry’s aimed to be a destination like IKEA, something no other computer store is doing today.
Problems with Fry’s
The store had a reputation for huge selection and low prices, but also for lousy customer service, especially difficulty getting refunds. This didn’t have to be a showstopper. Some businesses seem to thrive on bad or rude customer service and it becomes part of the charm. But when things started going wrong, the poor customer service gave one more reason to shop elsewhere.
Online shopping certainly hurt Fry’s. Some people would still drive for hours to visit the store because of the experience. But when you could get the same thing delivered to you for the same or less money and save the trip, that took away much of the appeal. There was something about wandering the aisles and seeing the merchandise and getting ideas, but convenience usually wins out over serendipity, especially as people grow accustomed to shopping online.
Fry’s was very slow to start selling online, with on-again, off-again deals with Cyberian Outpost and Egghead Software slowing down the start. When Fry’s finally made a deal and ventured online, it wasn’t until November 2001, and then doing so using the domain name outpost.com, with no clear connection to the parent company. It wasn’t until October 2006 that they were selling online at frys.com, with a clear connection between the online presence and the retail stores.
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