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Circut City

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By purdue512


Circut city goes under

For as long as I can remember, there have been two big electronic retail chains. Best Buy and Circut City. But recently, that changed. See, the electroncis business is extremely competitive. Because all the products are exactly the same, packaged at the manufacturer, and shipped in large quantities to the United States, the retail electronics market is about scale and price.

The biggest the retailer, the more quanity they can buy. With larget purchase numbers come greater discounts. I believe that Circut City was simply not able to compete with the much bigger Best Buy in this area. So if you look at any given Sunday's ads, you would see the same product from Circut City cheaper elsewhere. This was a problem for them ultimately.

Ironically, the Circut City model of offering appliances actually turned out to be a good move. Best Buy has now moved into that space. But it wasn't always that way. At first, the Circut City competition focused exclusively on the electronics market. They built bigger, cleaner stores that were simply more fun. I think that they actually out-big-boxed them...  Oh well. I'm sure more competition will come along some day.

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