Farewell to Circuit City…

circuitcity.gifAlthough Circuit City was not my favorite “small business electronics store”, I and hundreds of thousands of other shoppers in the US will miss it.
When you needed a gadget, gizmo or wire, Circuit City was one place high on your shopping list. Of course Best Buy, Radio Shack (in recent years) or an online retailer like Amazon.com, Dell.com would give you more of a selection but nothing beats feeling that external hard disk, or 19″ monitor in your hands before you buy it.
Reuters writes Bankrupt electronics retailer Circuit City Stores said on Friday it will liquidate its assets and shutter hundreds of U.S. stores after failing to reach a deal to sell the company.
Circuit City is one of the largest retail bankruptcies in the current U.S. recession. Its demise paves the way for larger rival Best Buy Inc to boost sales and gain clout with suppliers as the leading electronics retailer.
How does Circuit City’s closing affect Best Buy?
Reuters also writes Anthony Chukumba, an analyst with FTN Midwest Securities, said although the demise of Circuit City could hurt Best Buy in the next few months, the Minneapolis retailer stands to gain a significant portion of sales in the long run.
He estimated that should Best Buy gain 30 percent of Circuit City store sales, that could add 50 cents in annual earnings per share over its next fiscal year.