Circuit City, in an attempt to shore up its financials following sluggish flat-panel TV sales last year, announced today that it will close a number of stores and shake up its merchandising team. According to TWICE, "the first phase includes the closing of seven U.S. stores this month; a distribution center in Louisville, Ky.; 62 The Source by Circuit City stores in Canada; and Rapid Satellite, an online seller of DirecTV services that was acquired in 2005 and had since been put on sale."
Suffice it to say that Circuit effectively bet the farm on flat-panel TVs to try and retake market share from industry leader Best Buy (and others). But rapidly falling flat-panel prices have taken their toll on retailers' margins, particularly those that were so weighted towards HDTVs. It seems likely that Circuit will now have to place a greater emphasis on accessories and installation services if it is to have any chance of catching Best Buy.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment