It’s the day before the big day, and I imagine that everyone is getting ready to hit the sales tomorrow morning. All the while I read the economic reports that suggest fewer and fewer people are going out to buy big this year. Funny, though, the retailers believe that with all the economic news discounting heavily will bring them out to buy things that they may or may not need and save their year. I don’t think they’re too wrong, but I believe that they’re missing a very important part of black Friday – the profitability.\
It is very unfortunate that some companies have been unable to change and keep-up in today’s ever changing marketplace, and Circuit City is a prime example. Once a leader in the consumer electronics market they have recently fallen well behind their closest competitor, Best Buy. Today, citing concerns about their future, Circuit City files for Chapter 11 bankruptcy protection, which, in theory, would allow them to coninue operations through the peak holiday season.
What’s not written out in their filing are the changes that they’re going to make that might enable their future success. The company does not appear ready to change, and without a much needed 180 degrees change from what they’re doing today it’s unlikely that they will last through the holiday season, let alone through 200. So here’s the burn…
Most anyone that hasn’t been living under a financial rock probably already knows that we’re having a tough time in the American economy right now, and most of you probably also know that Circuit City is having a tougher time than most. If you’ve shopped at their stores in recent months you already know why, but their poor quality service is becoming legendary in the industry. But, all that aside, they’re making an effort to “return to profitability,” which I translate into “get some money back for our investors before we close our doors forever.” They’re doing this by cutting back and closing some stores. Here in my area they’re closing most of their retail presence and I’m thinking good riddance, btu that’s where my rant begins.