According to an article on yahoo.com, Circuit City announced it’s closing 155 stores.
It cited low sales (they dropped 13% last quarter at stores open more than a year) among other reasons.
Beginning Wednesday, the company will begin store closing sales, liquidating the merchandise.
THE REAL WORLD RETAILING TAKEAWAY
Sometimes the biggest issue is your relevance in today’s retail market.
Granted, the economy is tough these days. But electronics helped buoy the holiday time period last year, as the NRF cited the electronics category as the major reason holiday spending grew 3%. So why isn’t Circuit City doing better?
I’ve talked about this issue in the past as it related Best Buy. It’s simply the fact that Best Buy provides a superior store experience. Period.
Customers always have a choice. If they don’t like the merchandise, the price, the service, etc., they’ll go elsewhere. And that’s exactly what they did to Circuit City. All prices begin equal in electronics, they went to Best Buy, the place that gave them a superior store experience and superior [not to mention knowledgeable] service.
You can’t expect repeat customers if you don’t provide something they value.
What are you doing to ensure you’re relevant in today’s tough retail climate?