Fresh off of the news about Mervyns' collapse, we're seeing reports out there that Circuit City could close, at worst, hundreds of stores after the holiday season. Most estimates have the electronics retailer at least shutting 150 units.This isn't too big of a surprise. Just last month executives said that they were halting any new store openings for 2010. The chain was also nearly purchased by Blockbuster earlier this year in a potentially head-scratching deal.Is the electronics segment truly a one-specialty-chain show with Best Buy at the top of the heap. Circuit City has struggled to keep up with its rival, and now some analysts are saying that the company's downsizing could actually help Best Buy."We think there will be a pretty significant transference of sales from closed Circuit City stores to Best Buy," said FTN Midwest Securities analyst Anthony Chukumba, in a Reuters article. "In addition to that, we think Best Buy's gross margins would benefit because they would have increased leverage with suppliers."Best Buy's sales are holding up, and it's expansion has not slowed all that much, but how long can that chain keep it up? Either way, Circuit City's news can't bode well for landlords.

Instant Insights /

Reports: Circuit City Could Close 100's of Stores

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