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Best Buy will be the only game in town for many customers. Circuit City was second to Best Buy in the retail consumer electronics market.  (Source: AdRants)
Best Buy shall rule the land when it comes to retail electronics in the U.S.

It’s been a tough road for Circuit City. The retail electronics giant has been pummeled over the years by the likes of Best Buy and Walmart, and has been unable to turn its operations around due to the current state of the economy.

In early November, the company announced plans to close 155 stores in the United States. The stores combined accounted for $1.4 billion USD in sales for fiscal year 2008.

Just a week later, Circuit City filed for Chapter 11 bankruptcy protection -- the filing showed that the company has $2.2 billion USD in debt and $3.4 billion USD in assets. The news got even bleaker today as Circuit City's CEO announced that the company failed to find a buyer and that it could not refinance its debt.

As a result, Circuit City will liquidate all of its remaining stores. The liquidators lined up to sell off the merchandise from the remaining 567 stores include Great American Group, Hudson Capital, SB Capital Group and Tiger Capital.

"We are extremely disappointed by this outcome," said Circuit City CEO James A Marcum "Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company."

In early July, Blockbuster rejected a deal to purchase Circuit City.



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The competition
By djb2cents on 1/16/2009 12:28:34 PM , Rating: 5
For a good look at the competition (those that put Circuit City out of business), open up a program called FireFox ... It'll let you check out ALL of Circuit City and Best Buy's competition!!! Online stores will ALWAYS have the better prices, products and selections!!!




RE: The competition
By callmeroy on 1/16/2009 12:50:20 PM , Rating: 4
Prices and selection yes -- but the feeling I don't like about online purchases of large ticket items (to me anything $1000+ is "large ticket") are as follows:

a) A well known outfit like Best Buy has better odds of being around longer than "Chuck's Online Electronics World" does. Best Buy is a billion dollar corporation, chances are more than a little better they are fiscially more stable than some random online only operation.

b) How many hoops/how much of a pain is it to do exchanges of defective products or to get support? A brick and mortar location usually has some kind of service department that if they won't fix or replace the product for you you can at least go there and speak with someone to lodge your complaint/problem. Online who knows? Maybe that email address is over flowing or looked at once every month? Maybe the site doesn't even offer support or exchanges?

c) Now using my favorite online only operation New Egg as an example -- they've been around for a long time, have a proven track record of reliability and service for me....BUT I still would go to a "physical" business if everything else (price/product/policies) were the same because I don't have to wait to get what i want and I don't have to worry about the whole packaging and dropping my items off at ups/fed ex if I need to send them back. In short -- there's a "hassle factor" to online only.


RE: The competition
By rudy on 1/16/2009 1:38:59 PM , Rating: 4
All the things you say applied to Circuit City and CompUSA a couple years ago. Look at them now....

Shop at places that are reputable like newegg and its no where near as bad. I buy everything where ever they have the best price highest item however are reserved for my reputable companies like newegg or frozen CPU.


RE: The competition
By TomZ on 1/16/2009 2:41:49 PM , Rating: 2
quote:
I still would go to a "physical" business if everything else (price/product/policies) were the same
Not me. My average Newegg purchase takes approximately 1 minute to complete, if I am being slow. The item conveniently shows up at my door a couple days later.

Compared to the time spent and frustration involved dealing with retail stores...buying online is a no-brainer for me.

Even the small percentage of online returns I have to complete are not really a big hassle. Just today I had to RMA a couple of items back to Newegg. They paid for return shipping, and all I had to do was drop off the package at the local UPS store on my way to lunch. Quick and easy.


RE: The competition
By zinfamous on 1/16/2009 6:18:19 PM , Rating: 2
The other thing that will keep me coming back to B&M stores is people.

Whether they be worthwhile reps that can effectively answer my questions or pimply-faced semi-conscious teens, I prefer being around people most of the time. Call me weird, but the impersonality of the internet reaches critical load with me at certain times.

I feel like many of us, especially those born after the days of AOL and Netscape, are 50% of the way towards the digi-dependent slugs of Wall*E.


RE: The competition
By flydian on 1/16/2009 7:58:25 PM , Rating: 2
Newegg paid for shipping? I've never had them pay for shipping, which is one of the things that bothers me about them. The other would be the 2-3 week wait to get my replacement.

So I end up paying the purchase price, plus extra return shipping, plus 2-3 weeks of no product that is fully paid for, and in the end, I'm left with the distinct feeling that I PAID MONEY just for the honor of weeding out their defective inventory.

I still spend plenty of Geek$$ at Newegg, but am glad to have found some alternatives that are better suited to my needs.


RE: The competition
By tehbiz on 1/17/2009 1:38:09 PM , Rating: 2
yeah why would you want to look at a tv or monitor before you purchase them anyways? its not like you have to look at them when you use them or anything.


RE: The competition
By Nfarce on 1/16/2009 3:46:52 PM , Rating: 2
That is exactly why I purchased my only two big screens, a 42" plasma and a 46" LCD, at a big B&M (Fry's & CC). Both were on sale and within $100 after sales tax of the best price online at an E-tailer like Amazon. And I never had to worry about a return hassle and wait a week for a replacement like my neighbor did after his Sammy LN46A750 purchased through an Amazon supplier decided to fry itself.

Besides, like many others, I can spend countless hours reading reviews online, but they are always subjective. I'd rather see the product with my own eyes.


RE: The competition
By Ratinator on 1/16/2009 1:30:31 PM , Rating: 2
You are forgetting that at some places the price in the paper or online is higher than the price they will sell it to you and not to mention shipping something as big as a big screen tv won't be cheap. Go to the dealer and see what price they are willing to give it to you for.

When all is said and done there will be little difference in price and at least you have a local store you can take it back to for problems as opposed to having to ship at your own expense back to the dealer or manufacturer.

Now there are "some" cases where online is cheaper, but not "always" as you are indicating.


RE: The competition
By chick0n on 1/16/09, Rating: 0
RE: The competition
By FITCamaro on 1/16/2009 3:11:11 PM , Rating: 2
Yes lets just get rid of all brick and mortar stores and buy everything online, all the time, never leaving our homes.

Get a grip. The convenience of going to the store and having it (and being able to take it back immediately if there's a problem) is worth the few extra bucks on some items. Sure I buy computer components and such online. But for big ticket items, I want to get it somewhere local.


RE: The competition
By Netscorer on 1/16/2009 10:06:11 PM , Rating: 2
Oh yeah,

there's nothing like an instant gratification when buying a big ticket item. And silly me, I thought convenience is defined in Webster as sitting in your PJs in front of the warm glow of the monitor, not freezing your nuts in a cold car going over icy roads and beating the crowds where some store jerk wants nothing to do with you even if you practically beg him to allow you to run your test DVD to see if that latest Sony LCD TV is really up to it's reputation.


RE: The competition
By Reclaimer77 on 1/17/2009 7:43:29 AM , Rating: 1
I agree.

Plus the shipping fee's on big items almost always negate the online savings. You never see free shipping offered on a 150lb TV or kitchen appliance lol.


RE: The competition
By sticks435 on 1/18/2009 10:58:23 PM , Rating: 2
Actully, Newegg has free shipping on a bunch of Tv's in prep for the SuperBowl.


RE: The competition
By Denithor on 1/16/2009 3:48:17 PM , Rating: 2
The one advantage of B&M stores is being able to look at certain items, such as monitors & big-screen TVs. There's no replacement yet for being able to actually see how black the blacks are or how quickly the picture refreshes.

If for no other reason than this I certainly hope BB doesn't follow in the footsteps of CompUSA & CC anytime soon. But I do think, if they want to avoid that fate, they will need to wake up to the fact that online competition is here to stay and get used to lower margins.


RE: The competition
By phazers on 1/16/2009 4:46:02 PM , Rating: 3
I personally have run into the "Best Buy" pricing scam several times. The online price for my Sony TV was about $300 lower than the store price. When I mentioned this to the salesclerk, he went "online" to check and lo and behold, the "online" price was the same as the store price. When I told him to actually go to the Internet and not just the store server which is designed to mimic www.bestbuy.com, then he found the real price and of course matched it. I believe several state attorney generals have filed suits against Best Buy for this shoddy scam.

Now I always take a printout of the actual online price with me, but generally I avoid Best Buy as much as possible.


RE: The competition
By exanimas on 1/16/2009 9:36:50 PM , Rating: 2
Some people are just idiots/scumbags. If I were you I would've told a manager about it (hopefully they aren't the ones telling people to do this) and reported it to their corporate office.

On topic: I've heard from a few people that the people who are handling CC's liquidation are notorious for pricing things way the hell up. So be cautious if you're planning on taking advantage of them going out of business.


RE: The competition
By Nfarce on 1/17/2009 10:41:25 AM , Rating: 2
FYI, there is nothing illegal about posting a higher price in the store than online. Try shopping Fry's online (via Outpost.com) and getting one of those stores to match the online price. You will fail.

For the record, I found a great online price at CC for a Samsung upscaling DVD player/recorder. I went to the store to pick it up, and guess what? It was priced $20 more. I had to get a rep at the counter to adjust the price.

This is nothing new. An informed shopper - an aggressive shopper - wins every time. How many out there know that you can actually bargain a price on furniture, large appliances, cars, homes, .......


RE: The competition
By Nfarce on 1/17/2009 10:30:27 AM , Rating: 1
And I'll bet you are probably one of those aholes who whines about US unemployment numbers from your mother's basement and blames Bush for store closings.


RE: The competition
By TomZ on 1/16/2009 2:46:32 PM , Rating: 4
quote:
Now there are "some" cases where online is cheaper, but not "always" as you are indicating.
I'm an avid comparison shopper - especially on price - and I'd say that 99% of the time I can find a better deal online. Very, very rarely do I come across a lower price at retail.


RE: The competition
By g35fan on 1/16/2009 7:50:11 PM , Rating: 2
The only thing BB is good for is going to physically look at items that you want to purchase online. I too am a savy shopper - and not because I'm cheap but because I refuse to pad BB's pockets with an extra $10 here and an extra $200 there.

95% of the products they sell are rip off prices. They have "some" decent clearance items from time to time - like the 10" netbook for $199 recently...but besides that anyone who shops there thinking they are getting good deals is an idiot/sucker.

The funniest thing to me is that BB doesn't even want people like me (savvy electronics shoppers) in the store. They KNOW Americans as a whole are stupid and brainwashed by advertising and will come rush into BB to buy the newest tech fads from 17yr old female CSRs who don't know anything - about anything.


RE: The competition
By Googer on 1/18/2009 4:50:38 AM , Rating: 2
Don't forget, theres always Sears and the other stores we used before Best Buy came along.


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