Circuit City to shut 155 stores, exit 12 U.S. markets; could benefit Apple

“Circuit City Stores Inc. said Monday it’s shutting 155 U.S. underperforming stores, reducing future store openings and renegotiating leases to help preserve cash after its liquidity deteriorated and vendors tightened the struggling electronics retailer’s payment terms,” Andria Cheng reports for MarketWatch.

“As a result of the closings, Circuit City’s exiting U.S. 12 markets, and management’s considering all available options and alternatives to restructure its business,” Cheng reports. “The company also halted the opening of at least 10 locations that it had planned for this year while suspending openings completely next year and asking landlords for lower rents on some of its leases. As of Oct. 31, Circuit City had 712 stores and nine outlets in the U.S.”

“Shares of larger rival Best Buy Co. [rose] on expectations that it will pick up additional market share as a result of Circuit City’s store closings,” Cheng reports.

Full article here.

[Thanks to MacDailyNews Reader “John C.” for the heads up.]

MacDailyNews Take: As MDN reader “John C.” pointed out when he sent us this link, Circuit City does not carry Apple Macs (they do carry iPods and Apple TV). Best Buy does carry Macs – along with iPod and Apple TV, too. This development could positively affect Apple as former Circuit City customers head on over to their local Best Buy and finally get a chance to see and touch superior personal computing on display.

22 Comments

  1. Circuit City is still IN business ?

    Last time I visited their Tallahassee Store, few years back, I was one of about 3 customers – surrounded by 27 clerks.

    And, of course, not ONE of those clerks knew shit from shineola.

    Bless their hearts

  2. Goodbye and good riddance. Circuit City ceased being relevant a long, long time ago. Maybe 10 years ago when they were pushing that bullsh*t competitor to DVD.

    ——RM

  3. “Shares of larger rival Best Buy Co. [rose] on expectations that it will pick up additional market share as a result of Circuit City’s store closings,”

    And when Apple reports better than expected results, shares drop.

    Go figure.

  4. No, the lack of Circuit City where a Best Buy exists is not necessarily beneficial to Apple and its products. Our local Best Buy still has no new Apple laptops on display. They have no macsperts roving to help customers lingering over the small but distinct Apple display that has a total of five versions of macs out. Limited software exposure, even worse than at the old BB’s Apple area, doesn’t help, either.

    When there, I always see customers check out the lucious Apples, but I have yet to see a customer walk out with one – well, until last night. A man was back the Time Machine backupy Apple drive, and assume he was buying an iMac. The man was asking the salesman questions about the Mac, but seemed more knowledgable about hawing periphials for it than the actual answers to questions about its capabilities.

    I go out of my way to hawk Macs to cusomers when I am in the store. A lot of times I use the dispaly Macs to direct customers to the Apple store online, have them check out the refurbished prices (okay, only since no BB guy is usuall around to help, and especially when someone is interested in the new laptops but has no idea the ones they are checking out are all old version). If new to Macs I explain to them how simple it is to migrate over and the eaily apparent differences but Winblows and OSX.

    Closing Circuit City helps Best Buy, but does little for Apple.

  5. Ahhh, DIVX, how funny. We have a nice shiny new Circuit City about 5 minutes from my house. It’s right in the middle of a of a booming retail area, nice big regional mall across the street, Rolls-Royce dealership next door, restaurants, Supertarget, BJ’s, all the usual suspects. And still the Circuit City parking lot is always nearly empty. And if you go in, you have your choice of employees to answer any questions. One of your questions might be, ‘are you guys open?’….

  6. BC Kelly said: “Circuit City is still IN business ?

    Last time I visited their Tallahassee Store, few years back, I was one of about 3 customers – surrounded by 27 clerks.

    And, of course, not ONE of those clerks knew shit from shineola.”

    Our local CC is usuall quite busy. Or looks that way: the layout is so crowded it is hard getting around. Their poor attention to how they arrange display is the cause of their death, imovmo. Best Buy is open and airy, lots of space to roam…except their media aisles, still the weak spot in their layout.

    But CC sucks, for sure. But the less dynamic competition around only drives prices up.

  7. I noticed that when Circuit City – The Source – Whatever it’s called, bought out Radio Shack, they slimmed down their variety of products, and their consultants obviously told them to simply eliminate the lesser-selling electronics parts from their shelves. It was those more obscure pieces that brought me in to Radio Shack in the first place, and I always ended up buying some items purely on impulse; blank CDs, some cable, etc..

    With the streamlined, higher-margin-items-only Circuit City, I have no more reason to go into their stores, and now I don’t buy anything there.

    I wonder if my consumer experience is widely shared and has any bearing on Circuit City’s fortunes.

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