Thank you for sharing!

Your article was successfully shared with the contacts you provided.

RICHMOND, VA-Circuit City Stores’ same-store sales fell 5.6% during the company’s first quarter year over year, as television transactions posted wide declines. The slide comes as the retailer is streamlining its operations in preparation for the holiday season at the end of the year.

Circuit City’s net sales declined 4.3%, to just less than $2.5 billion, during the quarter, which ended May 31. The company posted a $54.6-million loss, compared to net earnings of $6.4 million during the same year-ago period.

Based on the company’s first-quarter performance, management has withdrawn financial guidance for the rest of the fiscal year. “Combined with an uncertain macroeconomic environment, for the time being, it is difficult to project sales and earnings performance,” says Philip Schoonover, chairman, president and chief executive officer Circuit City.

However, the company stuck to former store-opening plans of 60 to 65 new domestic units on top of its current portfolio of 643 locations. The new stores will be opened in Circuit City’s 20,000-sf format, which is a smaller footprint than its average, 30,000-sf unit. Executives tentatively have 85 to 100 stores on tap for next year.

Part of Circuit’s overall strategy going forward is to concentrate less on television sales and more on overall home entertainment and service businesses. The company is also trying to sell its Canadian division, which includes 800 stores under the names the Source by Circuit City and Battery Plus.

The company’s tough first-quarter results come in as competitors Best Buy posted disappointing sales earlier this week and Tweeter Home Entertainment filed for bankruptcy last week.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.