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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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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.


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