Circuit City Could Be Gone Very Soon

[Fiercetimbo17 10+ year member]

When someone says they are teflon and then turn around and their profit is 50% of what they said 3 months prior shit is hitting the fan...//content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

they are falling short of expectations yes, but they still have increased profits by 2% or so from last year

 

[its_bacon12 10+ year member]

This would be a prime target for Wal-Mart to enter the electronics industry.

 

[j3bus2k3 5,000+ posts]

This would be a prime target for Wal-Mart to enter the electronics industry.

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The introduction of walmart, costco and sams into CE Sales have already done the damage to Best Buy and Circuit City...why would they go out and buy us when they were one of our destroying factors 2 years ago...?

Wal-mart/Costco/Sams had price

Best Buy had Selection

No one had a hold on Service, we tried, did well, but couldn't keep up with Best Buy and The Wal-Mart Trio. Throw in HH Greg and Brandsmart into select markets, as well as a worsening economy into an already unstable company and this was only a matter of time...

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[its_bacon12 10+ year member]

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The introduction of walmart, costco and sams into CE Sales have already done the damage to Best Buy and Circuit City...why would they go out and buy us when they were one of our destroying factors 2 years ago...?

Wal-mart/Costco/Sams had price

Best Buy had Selection

No one had a hold on Service, we tried, did well, but couldn't keep up with Best Buy and The Wal-Mart Trio. Throw in HH Greg and Brandsmart into select markets, as well as a worsening economy into an already unstable company and this was only a matter of time...

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Think about it.. It's one industry Wal-Mart is seriously lacking in and can come in with their economies of scale and absolutely crush competition by squeezing margins like they do in their retail stores, offering an "introductory pricing" to steal market share then when competition is weak, raise prices. It's the Wal-Mart strategy and it works every time.

Companies are willing to take a hit on their products for a short time if they can get their products in the largest retail chain in the world, it makes sense.

Edit:

The biggest damage done to those companies is the price matching strategies offered to maintain market share. They end up taking a hit cuz their overhead is greater than Wal-Mart's.

The types of people who typically buy (more) expensive electronics at Wal-Mart already know exactly what they're looking for or going to purchase. The specialized stores tend to have the window shoppers and the ones who don't turn into a sale typically don't because of the high prices associated with the knowledgeable staff, customer service, other services offered and specialization.

 

[its_bacon12 10+ year member]

And I hope you're joking about the service for Wal-Mart... It's downright the worst I've ever experienced. People who know nothing about the products, working at minimum wage and understaffed locations.

 

[j3bus2k3 5,000+ posts]

Think about it.. It's one industry Wal-Mart is seriously lacking in and can come in with their economies of scale and absolutely crush competition by squeezing margins like they do in their retail stores, offering an "introductory pricing" to steal market share then when competition is weak, raise prices. It's the Wal-Mart strategy and it works every time.
Companies are willing to take a hit on their products for a short time if they can get their products in the largest retail chain in the world, it makes sense.

Edit:

The biggest damage done to those companies is the price matching strategies offered to maintain market share. They end up taking a hit cuz their overhead is greater than Wal-Mart's.

The types of people who typically buy (more) expensive electronics at Wal-Mart already know exactly what they're looking for or going to purchase. The specialized stores tend to have the window shoppers and the ones who don't turn into a sale typically don't because of the high prices associated with the knowledgeable staff, customer service, other services offered and specialization.

Do you even work in CE?

Wal-Mart may be lacking in a CE Department but they're far from lacking in CE Sales. THEY made vizio the #1 LCD brand in the world. We constantly hear from customers, well wal-mart has this, bring in a sams club tag or ask if we price match costco. Its daily. For the customers Best Buy and Circuit City got, the wal-mart trio, not each other, are still their biggest competitor. Thats just a fact...

And I never said Wal-mart had service...re-read...Wal-mart had price. Always will. Cause like you said, its the wal-mart way...

 

[audiolife 5,000+ posts]

they are falling short of expectations yes, but they still have increased profits by 2% or so from last year

o0o? let's break it down into something real simplistic...the economy is slowing down... stores that carry NO necessities for life can NOT be considered bulletproof especially in such an industry that depends so much on credit...credit is not going to be as loose as it once was. 53" lcd tvs are not a necessity in life...food and clothes..medicine + things of that nature are. Poor people or people who are forced to be tighter with their money spend less on what they do not need. I called this fiasco 3 years ago and something pretty close to this happened in the 70's that ruined a few thought of industructable retailers...point is you get so big and things get so bad that companies of that size tend to be able to lose money REAL QUICK:laugh:

Electronics as a whole depreciate in value pretty quickly, so overall they can not be looked at as a wise investment in tight times.

 

[Ken448 10+ year member]

Im still surprised ABC Warehouse is still around. (dunno if they are national of just in MI though) Walk in that place and they have the old fassioned high pressure salesmen jump on your cawk AS SOON as you get in the door. Nothing keeps me away from a store than not being able to browse on my own. You try to tell em you are good, take their name card whatever and still, every 3 minutes they pop around the corner, or under the stall if you have wandered into the sh!tter "just makin sure youre still doing OK"

 

[Max_Power 10+ year member]

Im still surprised ABC Warehouse is still around. (dunno if they are national of just in MI though) Walk in that place and they have the old fassioned high pressure salesmen jump on your cawk AS SOON as you get in the door. Nothing keeps me away from a store than not being able to browse on my own. You try to tell em you are good, take their name card whatever and still, every 3 minutes they pop around the corner, or under the stall if you have wandered into the sh!tter "just makin sure youre still doing OK"

no kidding!! We have a few of them here in Ohio, and I couldn't agree more. Everytime you walk in that place its, "make you good deal, give you good price!!"