CompUSA 2010 Annual Report Download - page 1

Proxy Statement and
2010 Annual Report to Stockholders
Dear Fellow Stockholders,
In 2010 Systemax delivered record sales as we managed through the challenging economic and consumer
environments. Our performance reflects our prudent operating approach and ability to execute on our strategic plan.
We have built Systemax into a diversified multi-channel retailer with operations in North America and Western
Europe that target consumers and businesses across e-Commerce, retail, direct sales and catalog channels. Our
diversity sets us apart and mitigates any dependency on a specific geographic region, customer group, or distribution
channel. Our multi channel approach is supported by our strong brand awareness, loyal customer base, expanding
sales force, deep management team and strong balance sheet.
Results for the year were led by our business-to-business (“B2B”) operations, which are continuing to benefit from
the information technology refresh cycle. Our B2B business generated double digit revenue increases in 2010 and
represented half of our total revenue. We had strong performance across all markets – the U.S., Canada and in
Europe, where we benefited from the strategic addition of WStore in late 2009. Revenue for our consumer business
was up for the year, but more modestly than B2B, reflecting the difficult consumer environment and the price
sensitivity of the web, our largest consumer channel. While on an overall basis we were pleased with these results
and our strategic progress in 2010, we were not content with our bottom line performance, which remains a key focus
area for our management team. We have taken a number of steps to improve margins by controlling costs and driving
efficiencies across our operations and will continue to do so in 2011.
During the year we executed on a number of operating and strategic initiatives that will strengthen our competitive
position and improve our ability to capitalize on our growth opportunities.
• WStore Integration: We completed the integration of WStore with our existing operations in France and the
United Kingdom and were very pleased with the results. We are well positioned to improve our top and bottom
line performance in these markets.
• Retail Store Footprint: We opened seven retail stores in 2010, bringing our year-end total to 41 stores. We will
continue to take a very prudent approach to our retail expansion, with a strategic focus on markets where we
can leverage our existing infrastructure and advertising budgets.
• Distribution Center Opening: In September, we shipped the first products from our new Technology Products
distribution center in Georgia. This facility which will improve our logistical efficiencies as it ramps up its
operations and provides us with the necessary capacity to accommodate future growth.
• B2B Sales Force Investment: Our sales force is a key driver of our B2B success and worldwide we added more
than 150 sales agents in 2010. We will continue to make investments in our sales teams in the year ahead.
• Retail Store Co-Branding: In the middle of 2010 we made the strategic decision to co-brand our core retail
brands in the United States, CompUSA and TigerDirect. We believe this shift has resulted in a better multi-
channel strategy for our retail and web businesses, by enabling us to cross promote the brands to their
combined customer bases and more efficiently utilize our advertising dollars.
• Industrial Products Group Expansion: The significant expansion of Global Industrial’s SKU count and
introduction of new product categories helped drive strong double digit revenue growth in 2010. We continue
to expand the product lines and 2011 will benefit not only from more products to sell but also from the
December 2010 launch of GlobalIndusrial.ca, our Canadian website.