CompUSA 2014 Annual Report Download - page 33

The Industrial Products net sales increase in 2014 is attributable to expanding our product assortment in new and core product categories, the
continued expansion of our private label and brand name selections as well as investment in hiring sales personnel and subject matter experts,
who bring significant technical knowledge in specific categories, thus enhancing our sales efforts with information important to our customers.
On a constant currency basis, sales increased 17.7%.
The Technology Products net sales decrease in 2013 compared to 2012 was attributable to general declines in most product categories within
North America, with the largest decline being in the CE product category. The Company believes major drivers of the decline in North America
net sales was attributable to web, television and retail store sales declines, resulting from sales volume and selling price erosion in certain core
product categories such as personal computers and televisions. The Company believes the decline in sales and price pressures for consumer
electronics are attributable to a variety of well publicized industry and market trends, including consumer preferences for new generation tablets,
which erode laptop and desktop PC sales, the market share for tablets held by a major manufacturer, which does not sell to the Company for U.S.
markets, the consolidation of prior generations of separate devices and functions into a single integrated device (such as GPS and cameras being
integrated with smart phones), the ongoing movement of traditional brick and mortar store sales to online/ecommerce vendors, and the
increasing influence of a dominant company in the online/commerce marketplace. Additionally, in the fourth quarter of 2013, the Company
made the decision to avoid lowering selling prices to match aggressive online retailers. Strong computer and consumer electronic sales within
European markets were more than offset by weak sales of computer accessories, software and computer components in Europe and the declines
in North America. On a constant currency basis, sales declined 8.6% or $270.8 million. The Industrial Products segment net sales increase in
2013 compared to 2012 was attributable to the new product category offerings on the Company's websites, solid results from our core offerings,
as well as the expansion of our private label and brand name selections. On a constant currency basis, sales increased 18.0% or $72.5 million.
CHANNEL SALES:
Business to business sales:
The Company experienced growth in worldwide B2B channel sales for the year ended December 31, 2014 compared to 2013.
The European Technology Products sales increase is attributable to continued sales growth in France, incremental sales from SCC Services,
acquired in June 2014, and favorable currency movements during the year. On a constant currency basis and excluding SCC Services, European
Technology Products net sales increased 0.9%.
The North American Technology Products B2B sales increase is attributable to an increase in the sale of computer components, commercial
desktops, laptops and servers during the year. On a constant currency basis, North American Technology Products business to business net sales
grew 4.7%. The North American Technology Products B2B business has experienced strong growth over the last several years, but there can be
no assurance that this business will continue to achieve its historical growth rates in future periods.
The Industrial Products net sales increase is attributable to broad based growth across both new and core product categories and the continued
expansion of our private label and brand name selections and the hiring of additional sales personnel and subject matter experts. On a constant
currency basis, Industrial Products net sales increased 17.7%.
The increase in consolidated B2B channel sales in 2013 compared to 2012 was driven by the Industrial Products segment’
s growth in new
product categories on the Company’s website and a solid performance in core offerings. The Technology Products segment’
s European
operations showed modest improvement in B2B channel sales compared to 2013 which was offset by a decline in its North American B2B
sales. On a constant currency basis, worldwide B2B channel sales grew 2.0% in 2013.
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