Fry's began with one store in Sunnyvale, California, and expanded to 34 stores in nine states at its peak in 2019.[1][2]
On February 24, 2021, Fry's announced the immediate and permanent closure of all of its stores. A statement posted on its website cited "changes in the retail industry and the challenges posed by the COVID-19 pandemic".[3][4][5]
In 1972, Charles Fry sold the Fry's Supermarkets chain based in California for US$14 million to Dillons.[7] He gave a portion of the proceeds, around $1 million, to each of his sons, John (who had worked as the IT manager for the supermarket chain), W. Randolph (who goes by the nickname "Randy"), and David, none of whom had much interest in grocery store retailing.[8][9] Instead, on May 17, 1985, they joined together with a fourth partner, John's former girlfriend Kathryn Kolder, to open the first Fry's Electronics store at a 20,000sqft (1,900m2) site in Sunnyvale, California.[10] Today, Fry's Food and Drug stores are owned and operated by Kroger, and are not affiliated with Fry's Electronics, although they have similar logos.[11]
John's idea was to use the model of grocery retailing, with which the brothers were familiar, to sell computer and electronics supplies.[12] The original Sunnyvale store (located near the intersection of Oakmead Parkway and Lakeside Drive[13]) stocked numerous high-tech supplies such as integrated circuits, test and measurement equipment, and computer components, as well as software and various other types of consumer electronics. The store was one of the few retail outlets in the country that sold off-the-shelf microprocessors, such as the Intel 80286. The store also sold T-shirts, technical books, potato chips, and magazines, including Playboy.[9][14] At first, roughly half the store was stocked with groceries, including fresh produce, but the groceries section quickly diminished to displays of soft drinks and snack foods. The store billed itself as "The One-Stop Shop for the Silicon Valley Professional", as one could buy both electronics and groceries (computer chips and potato chips) at the same time.[15] Most components from most OEMs, were available for purchase, to assemble a desktop computer, à la carte.[16]
As the business expanded, the original Sunnyvale store closed, and a newer, larger store was opened across Lawrence Expressway on Kern Avenue. The second Sunnyvale store was designed to look like the interior of a giant computer; the walls were adorned with simulated circuit components, and the floor resembled a giant printed circuit board. The exterior was painted to mimic a huge DIP integrated circuit, and the door handles imitated the ENTER and ESC keys on a computer keyboard; since 2005, this store has housed a Sports Basement store (which still bore some of the door-handle keys until sometime between 2009 and 2013). Fry's moved again to its final Sunnyvale location at 1077 E Arques Ave. at the corner of Arques and Santa Trinita Ave, the former site of a facility of the Link Flight Simulation Division of the Singer Corporation. Each of the three Sunnyvale store locations was located within 1 mile (1.6km) of the others.[13]
Because Fry's stores were enormous, stocking a wide range of each product category, they were popular with electronics and computer hobbyists and professionals.[17][18] One of the few stores to challenge Fry's in all dimensions (production selection and store-wide themes) was Incredible Universe, a series of Tandy (Radio Shack) superstores, which were established in 1992, bought out, and converted into Fry's in 1996. Historically, Circuit City and CompUSA were major competitors in the computer space, but they collapsed during the late-2000s recession, leaving Micro Center and Newegg as Fry's main competitors.
In August 2014, Fry's Electronics operated 34 brick-and-mortar stores in 9 U.S. states: California (17),[19] Texas (8), Arizona (2), Georgia (2), and one each in Illinois, Indiana, Nevada, Oregon, and Washington.[20]
In August 2019, Fry's announced that it would close its oldest extant location in Palo Alto, by January 2020; the company said its lease at the location would not be renewed.[21] On September 10, 2019, The Mercury News reported that customers were finding barren shelves in most stores, speculating that the chain was about to fold;[22] Fry's responded by stating the company was changing to a consignment model with its vendors and was not planning to close any store other than Palo Alto.[23] However, on January 7, 2020, The Atlanta Journal-Constitution reported that the Fry's location in Duluth, Georgia, was shuttered without advance notice during the 2019 holiday season.[24] On February 25, 2020, Fry's announced that they would close their Anaheim location by March 2, 2020.[25] On November 10, 2020, Fry's closed its Campbell location permanently without notice.
Closure
On the evening of February 23, 2021, several internet sources began claiming employees were given notice that all remaining stores would close to the public nationwide, with the Frys.com website scheduled to go offline at 12:00 am PST. The company deleted its Facebook page, and set the company Twitter account to protected, hiding all activity.[26] Bay Area broadcaster KRON-TV confirmed the closure later that evening.[5]
The Fry's website closed in the early hours of February 24, only showing a letter informing of its closure. According to the letter, the company would implement the shutdown through an orderly wind-down process that it believed would be in the best interests of the company, its creditors, and other stakeholders to maximize the value of the company's assets for its creditors and other stakeholders.[4] The company said those waiting for repairs will be notified how to claim their equipment.[27]
Fry's officially entered general assignment on April 2, 2021, and began to liquidate all remaining assets, including owned real estate with Hilco Global.[28]
Criticism
In 1997, Forbes reported on a series of issues about Fry's customer service and unorthodox business practices. Among the allegations was that the company had an internal policy, identified as "the double H" or "hoops and hurdles", to delay or prevent customers from obtaining refunds.[9]
In 1998, USA Today and Wired reported that many customers had become frustrated with poor customer service at Fry's stores.[29][30][31][32]
On Black Friday 2007, customers at the Renton, Washington location complained that Fry's employees were offering to let people cut in front of a long line for a fee. After complaints in the media, Fry's management offered anyone who paid the fee their money back.[35]
In 2008, the Federal Communications Commission found Fry's failed to place the required "analog-only tuner" consumer-alert label on analog televisions, fining them $384,000 (~$533,663 in 2023).[36]
In 2008, Fry's vice president of merchandising and operations, Ausaf Umar Siddiqui, was charged by federal prosecutors in a kickback scheme involving Fry's vendors, fueling sales with mail-in rebates.[37][38][39][40] The alleged scheme was designed to defraud the company. Siddiqui used the funds to (among other things) feed his gambling habit in Las Vegas, where he lost about $162 million.[41]
In September 2012, Fry's Electronics agreed to pay $2.3 million (~$3.02million in 2023), and to implement preventive measures, to settle a sexual harassment and retaliation[42] lawsuit brought by the U.S. Equal Employment Opportunity Commission. The settlement was in relation to allegations that an assistant store manager at the Renton store harassed a 20-year-old sales associate by frequently sending her sexually charged text messages and inviting her to his house to drink. After her direct supervisor reported the harassment to Fry's legal department, the company allegedly fired the female salesperson and fired her supervisor for standing up for her.[43]
In 2017, a store in Webster Texas made headlines when a manager set up a display to demonstrate indoor grow lights for sale and used realistic looking but ultimately fake marijuana plants. This was considered unacceptable by the local community considering marijuana was illegal in the state of Texas.
In 2019, rumors about the chain folding spread rapidly, mainly because shelves were empty for long periods of time and stores seemed to emphasize makeup and fragrances over electronics. Fry's responded by stating they were simply switching to a consignment model, not closing down entirely.[23] From when Fry's put out this statement until early 2021, four additional stores closed (three were in California, and one in Duluth, Georgia),[24] which further led many to believe that the company would soon go out of business.
Online sales operation
Fry's Electronics was late in establishing an online sales presence. They began offering low-cost Internet access in 2000 through their original Web address "Frys.com".[44] The company later bought e-commerce site Cyberian Outpost in November 2001, and started online sales with a different URL (Outpost.com),[45] which confused customers who did not associate the online name with the brick-and-mortar store.[46] For a time in the mid-2000s, the Web site identified itself as "Fry's Electronics Outpost.com", using dual branding in an attempt to create a connection in visitors' minds.[47] In October 2006, a grand reopening of Frys.com introduced the online store with the same name as the retail outlets.[48][49] The outpost.com URL later began redirecting to the Fry's online store.
Domain name acquisitions
In 1997, David Peter (or David Peter Burlini), who manufactured and sold French fryvending machines under the business name Frenchy Frys, owned the domain namefrys.com, and was also involved in another dispute over the domain newricochet.com with Ricochet Networks.[50] David Burlini attended Santa Clara University around the same time that the Fry Brothers were attending.[51][52] Fry's Electronics brought suit against him that year, alleging trademark infringement, and ultimately prevailed in a default judgment.[53][54]
Fry's Electronics aggressively tried to defend its trademark and domain names. In 2001, it threatened to sue Garret Maki[55][56] for scanning and posting the company's print ads on the Web using the domain frysad.com.[57][58] In 2007, Fry's Electronics lost a domain dispute against Prophet Partners Inc., an online advertising company with thousands of generic and descriptive domain names. The arbitrator dismissed the complaint, which requested transfer of the Frys.us domain, ruling that Fry's Electronics did not have any more right to use the "Fry's" mark than other entities with a similar surname or commercial use of the word.[59]
Store themes
Various Fry's locations were decorated in elaborate themes. For example, the Burbank store, which opened in 1995, carried a theme of 1950s and 1970s science-fiction movies, and featured huge statues of popular characters such as the robot Gort from The Day the Earth Stood Still and Darth Vader from the Star Wars movie series. In addition, giant ants (from the movie Them!) hung from the ceiling, and the bodies of 1957 Chevys and Buicks served as dining tables in the cafe. A flying saucer protruded above the entrance.[citation needed]
Since Fry's acquired seven stores from the Incredible Universe chain of stores, the company had reduced the elaborateness of its themes. With the opening of the store in Fishers, Indiana, Fry's made a "race track" theme with various hanging displays, including "stop" and "go" signs, as well as many photos of what life looked like in the late 1800s and early 1900s in Indianapolis.[citation needed]
Of the chain's 34 stores, 30 of them closed on February 24, 2021. Four stores were closed earlier:
Tandy Corporation was an American family-owned retailer based in Fort Worth, Texas that made leather goods, operated the RadioShack chain, and later built personal computers.
Zellers was a Canadian discount store chain founded by Walter P. Zeller in 1931. It was acquired by the Hudson's Bay Company (HBC) in 1978, and after a series of acquisitions and expansions, peaked with 350 locations in 1999. However, fierce competition and an inability to adapt during the early stages of the retail apocalypse resulted in Zellers losing significant ground in the 2000s.
Future Shop was a Canadian electronics store chain. It was established in 1982 by Hassan Khosrowshahi. By 1990, the chain had become the country's largest retailer of computer and consumer electronics. In October 2012, the company operated 149 locations across Canada.
RadioShack is an American electronics retailer, which was established in 1921 as an amateur radio mail-order business. Its original parent company, Radio Shack Corporation, was purchased by Tandy Corporation in 1962, shifting its focus from radio equipment to hobbyist electronic components. At its peak in 1999, Tandy operated over 8,000 RadioShack stores in the United States, Mexico, and Canada, and under the Tandy name in The Netherlands, Belgium, Germany, France, the United Kingdom, and Australia.
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. Originally founded by Richard M. Schulze and James Wheeler in 1966 as an audio specialty store called Sound of Music, it was rebranded under its current name with an emphasis on consumer electronics in 1983.
CompUSA, Inc., was a retailer and reseller of personal computers, consumer electronics, technology products and computer services. Starting with one brick-and-mortar store in 1986 under the name Soft Warehouse, by the 1990s CompUSA had grown into a nationwide big box chain. At its peak, it operated at least 229 locations. Crushed by competition from other brick-and-mortar retailers, corporate oversight which was out of touch with evolving market realities, and a failure to make a strong transition to online sales, CompUSA began closing what they classified as "low performing" locations in 2006. By 2008 only 16 locations were left to be sold to Systemax. In 2012, remaining CompUSA and Circuit City stores were converted to TigerDirect stores, and later closed. As of 2023, the CompUSA online website redirects to an error page.
The Apple Store is a chain of retail stores owned and operated by Apple Inc. The stores sell, service and repair various Apple products, including Mac desktop and MacBook laptop personal computers, iPhone smartphones, iPad tablet computers, Apple Watch smartwatches, Apple TV digital media players, software, and both Apple-branded and selected third-party accessories.
The Disney Store is a chain of specialty stores created on March 28, 1987, and sells only Disney related items, many of them exclusive, under its own name and Disney Outlet. It was a business unit of Disney Consumer Products with the Disney Experiences segment of The Walt Disney Company conglomerate.
Dick Smith Electronics Holdings Limited was an Australian chain of retail stores that sold consumer electronics goods, hobbyist electronic components, and electronic project kits. The chain expanded successfully into New Zealand and unsuccessfully into several other countries. The company was founded in Sydney in 1968 by Dick Smith and owned by him and his wife until they sold 60% to Woolworths in 1980, and the remaining 40% two years later.
Incredible Universe was a chain of American consumer electronics stores from 1992 to 1997. A typical Incredible Universe store was 185,000 square feet (17,200 m2) of sales floor and warehouse, stocking around 85,000 items.
London Drugs is a Canadian retail pharmacy chain based in Richmond, British Columbia. As of August 2024, the chain has 79 stores in Western Canada. In addition to pharmacy services, London Drugs locations also sell electronics, housewares, cosmetics, and a limited selection of grocery items.
Egghead Software was an American computer software retailer. Founded in 1984, it filed for bankruptcy in 2001 and its domain name was acquired by Amazon.com.
TigerDirect was an El Segundo, California-based online retailer dealing in electronics, computers, and computer components. The company was previously owned by Systemax, which is known for its acquisitions of the intellectual property of the defunct U.S. retail chains Circuit City and CompUSA and relaunching them as online retailers. The two brands were subsequently shuttered in late December 2012 and consolidated into the TigerDirect site.
Service Merchandise was a retail chain of catalog showrooms carrying jewelry, toys, sporting goods and electronics. The company, which first began in 1934 as a five-and-dime store, was in existence for 68 years before ceasing operations in 2002.
Harvey Norman is an Australian multinational retailer of furniture, bedding, computers, communications and consumer electrical products. It mainly operates as a franchise, with the main brand and all company-operated stores owned by ASX-listed Harvey Norman Holdings Limited.
Computer Literacy Bookshops was a local chain of bookstores selling primarily technical-oriented books in Northern California. It was founded in 1983 in Sunnyvale, California, where its concentration in technical books fit well with its Silicon Valley customer base.
Lechmere was a Massachusetts-based chain of retail stores that closed in 1997. At the time of its closing, it had 27 stores, including 20 in New England. The chain offered electronics, appliances, and various household goods. It also had locations in New York and the Southeastern United States.
Micro Center is an American computer retail store, headquartered in Hilliard, Ohio. It was founded in 1979, and as of 2024, has 28 stores in 19 states. The chain is a highly electronic and mechanical center for building personal computers and gaming computers.
ComputerWare: The MacSource was a chain of ten Macintosh-only retail stores in the greater San Francisco Bay Area of Northern California founded by Karim Khashoggi and Drew Munster. At one time, they were the largest Macintosh-only reseller in the United States. Guy Kawasaki mentions ComputerWare a number of times in his book, The Macintosh Way. Besides the ten stores, ComputerWare also had a headquarters that held international, direct, and corporate sales departments, and at one time had a full hardware repair depot and various training centers on the Bay Area.
↑ Sheyner, Gennady. "Fry's Electronics to shutter Palo Alto store in January". www.paloaltoonline.com. Retrieved February 25, 2021. The store's lease for the century-old building at 340 Portage Ave. that once served as a cannery is set to expire on Jan. 31.
↑ Harris, Pat Lopes (January 14, 2000). "Fry's mystique: timing, focus, frugality—and lots of advertising", San Jose Business Journal 17, no. 39: p. 52.
1 2 3 Marsh, Ann; Woolley, Scott (November 3, 1997). "The customer is always right? Not at Fry's". Forbes. Archived from the original on November 9, 1999. Retrieved February 25, 2021. Showbiz aside, it was serious one-stop shopping with the best prices and selection in town.
↑ Maki, Garret; Ordoñez, Rodrigo (November 1, 2007). "Installation Profile: Legislative Sound". Sound & Video Contractor. Retrieved February 25, 2021. Inside the U.S. Senate Chamber's digital audio upgrade.
↑ "Sunset Digital Masters 'Sullivan Show'". Creative Planet Network. February 14, 2012. Retrieved February 25, 2021. Sunset Digital is a creative and technical film and video postproduction company specializing in a variety of media and data, and servicing every aspect of the entertainment industry. Garret Maki, VP, New Media for Sunset Digital, supervises the company's DVD division.
"Discussions". Fry's Forum. Fry's Forum is not affiliated with Fry's Electronics, Inc.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
US$2.3 billion (2018) [2] 
