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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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Inevitable for many companies
By Leomania on 1/16/2009 12:51:15 PM , Rating: 3
I heard recently that the ratio of retail stores per capita in the U.S. is far, far higher than in Europe; the upshot being that there's going to be a LOT of vacant retail buildings in the years to come. So losing a retailer, even one of this size, isn't too surprising given the state of the economy.

But what is it about some stores that prevents them from maintaining critical mass? I know that I have purchased something from Circuit City perhaps two or three times since they opened. Something about them never quite drew me in. When I was in a store, I remember thinking they had a lot of breadth in their product offerings, but didn't have as many choices as other stores. I also felt the prices were a bit too high for what they had. Flipping through the weekend sale paper, my interest was seldom piqued, and obviously not enough to entice me to travel to the nearby local store.

I'm no big fan of Best Buy, but I did buy more from them over a shorter number of years than from Circuit City.

Anyone else get this sense from their experiences in Circuit City?




RE: Inevitable for many companies
By Suntan on 1/16/2009 1:31:10 PM , Rating: 2
quote:
I heard recently that the ratio of retail stores per capita in the U.S. is far, far higher than in Europe


Yeah, but have you ever tried to buy electronics in some of the small/medium sized towns in Europe? Good luck finding squat for selection.

-Suntan


RE: Inevitable for many companies
By Penti on 1/19/2009 9:11:38 AM , Rating: 2
Shopping in medium sized towns is fine, you have your Samsungs, Panasonics, Philips, Thosibas, Pioneers, Sonys, Sharps and LGs. And a medium sized city? That's 100 000 people in the whole municipality in Sweden.

Not that they have a great selection, but it's not like you can buy any other models online, the TVs are made for one market and imported by the manufacturers in country specific models. Computer stores practically doesn't exist here though, the B&M stores has computers of course and I guess most people are happy about that.


RE: Inevitable for many companies
By TomZ on 1/16/2009 3:02:46 PM , Rating: 2
quote:
I heard recently that the ratio of retail stores per capita in the U.S. is far, far higher than in Europe; the upshot being that there's going to be a LOT of vacant retail buildings in the years to come.
What gives you the idea that US retail will converge upon what exists in Europe? If anything, I would guess the opposite is true, that European retail will continue to follow trends you see in the US (and elsewhere). For example, more large chains, more competition/overlap, etc.


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