Circuit City Problems
discman -- Fri, 06/20/2008 - 09:38
Circuit City reports a decline of 12% in sales at stores open more than a year (a way to correct for growth do to new store openings). Gross margins (a measure of profitability also fell from 22.5% to 20.8%. This may not be all recession-related, as Circuit has had problems for years. They are changing their sales model and product mix. The quarterly report said these initiatives were proceeding well.
All content, design, and layout are Copyright © 1999 - 2011 NextScreen. All Rights Reserved.
Reproduction in whole or part in any form or medium without specific written permission is prohibited.
Reproduction in whole or part in any form or medium without specific written permission is prohibited.
Conversely, Best Buy faired better than expected in its most recently quarterly report.
It will be interesting to see if the Blockbuster takeover bid for Circuit City is successful. Blockbuster seems to have pulled out of its slide with profitable results last quarter and is now selling game consoles in its stores.
Circuit City could use an overhaul.
Wolfi
Actually Circuit is going through an overhaul. Question is whether anyone has the right overhaul formula (assuming there is one)?
CEO and Editorial Director, Nextscreen LLC
So far I have yet to see WHY Blockbuster and Circuit City will do any better together than apart.
Yes, I know all about economies of scale... and rust...
Retailers have to give consumers a compelling reason to enter their storefronts. CC and BB haven't got a clue.
Personally I feel unless a retail establishment can add value, especially if they sell commodities (mid-fi audio, video, computers, and all related software are just that) they have no reason to exist.
Steven Stone
Contributor to The Absolute Sound, EnjoytheMusic.com, Vintage Guitar Magazine, and other fine publications