Blown fuse at Circuit City
Merry Christmas, Circuit City employees. A lot of you are getting a gift of pink paper. I've always thought it was awful that layoffs come at this time of year, but one friend noted it's better now then after running up huge bills during Christmas and then being jobless when they come due. Six of one, half dozen of another, I say.
The company will close 155 underperforming stores (listed here), cancelled plans to open 10 more, and will exit 12 markets (Phoenix, AZ seems to be the largest, although Texas and Ohio are also getting creamed). Judging by the list, it's clearly smaller cities that are taking the hit. The one near me that's closing is about 200 yards from a Best Buy, a few miles from Fry's Electronics and in a low-income neighborhood, so I am not surprised at its demise. Time to go bargain hunting (I need a digital camera).
The company cited the usual excuses: declining consumer confidence, weakened retail environment, vendors facing tightened credit terms from their lenders, blah blah blah. The real question is which act really sealed Circuit's doom.