Circut city - Why did it die
 
   

With the results coming out of Best Buy today, it's hard to tell if this is because Circut City went under or is why Circut City went under. Regardless, the retail chain leader, Best Buy, is having a sharp stock price rally as a result of some fantastic earnings at their retail chain. And in today's economic environment, that is really something to be happy about.

So why couldn't Circut City have produced these same results? Well, I think it is complicated. And there is no simple answer here. Obviously, in an open market system, the best electronics retailer is going to win. Both chains moved toward big-box discounts a long time ago. Interestingly, Circut City was the first to move out of pure electronics and into appliances and other household purchases. Best Buy is now branching out of electronics and into house retail items. I have seen ovens and refrigerators there.

But Best Buy did some things that Circut City did not. They went heavy into service offerings. They bought the Geek Squad for computer repair. They offered HDTV installation in your home. They went after a slightly more FUN image. I don't know, maybe it was just that red is an angry color where light blue and yellow are more fun. Perhaps retail psychology won the electronics business.

Article Author: Al Zan
Author Home Page: Search optimization
Article Category: Technology
Article Topic: Technology
Article Keywords: circut city