Circuit City is finally closing its 567 nationwide stores, after indicating as much late last year. Does the Circuit City liquidation offer good deals? Probably not, according to the Consumerist, but it’s worth a look-see.
CNN has the details on the Circuit City liquidation:
The liquidation of Circuit City Stores (CCTYQ) may end up being a tough sell for the company itself and is sure to carry impacts for its competitors, retail consultants said.
The second largest electronics retailer behind Best Buy Co. (BBY) may not be able to draw foot traffic even with going-out-of-business sales because consumers, as demonstrated during the Christmas holiday, aren’t buying despite deep discounts.
Even an “everything must go” approach may not stir an abundance of interest because shoppers are becoming used to such proclamations, analysts said.
“I think Circuit City will be able to liquidate through its stores, but it will be challenging,” said Gregory Segall, managing partner of private-equity firm Versa Capital Management. “Moving merchandise will likely be tough no matter how motivated Circuit City’s liquidators are.”
Despite the lag, Circuit City’s liquidation offers will probably beat Best Buy–who, meanwhile, is quietly celebrating Circuit City’s dissolution. With the diminished competition, they might as well rename themselves “Buy.” Get the deals while you still can.