Friday, January 16, 2009

Circuit City Closing American Stores - Canada Okay

This isn't good news for the 34,000 people who work (worked, rather) for Circuit City in America. And, it's at best a mixed bag for the rest of us.

In the long run, Circuit City liquidating 567 stores in America should mean more customers for other electronics retailers. In the short run, Circuit City's efforts to unload its remaining merchandise will probably drain customers away from them.

I suppose die-hard Circuit City customers south of the border could still shop at their favorite store: the hard way, going in person; or online. Circuit City says its 765 retail stores and dealer outlets in Canada aren't going anywhere.

Why Should I Care?

The number of soon-to-be-unemployed Circuit City employees is more than eight times the number of people who live in my town. That's a lot of paychecks that won't be coming in. On a personal level, I feel for the Circuit City folks, and the people who depend on them. This isn't going to be an easy time to find work.

It's also another indication that times are bad all over: even in Dubai. Construction on the Nakheel Harbour & Tower over there is on hold for a year.

Construction work in Dubai has even less to do with me and my enterprise than what's happening in American retail electronics, but the point is that very few people are feeling rich right now. Which means they'll be more sensible for their money.

And that's going to be a little tricky for me, since what I've focused on has been non-essential spending: like Minnesota for Web-Wise Travelers. Business travelers could use the links there, but Minnesota for Web-Wise Travelers is mostly geared for people looking for "Vacation Time Stuff."

Circuit City Liquidating: Bad News, But - - -

Unless something's changed in the last week, American national retail sales for electronics have been going down. With the exception of Wal-Mart.
And the Moral of This Story is - - -
Just because a national - or global - trend is going one way, doesn't mean that all businesses will go the same way. Wal-Mart is doing something different, so their electronics sales are growing.

The trick for me, and every other small business owner, will be to figure out which option for my little online empire isn't just different: but profitable.

(That seemed so profound when I thought of it: now that it's in print, not so much.)

Related post: In the news: Background:

1 comment:

Brian, aka Nanoc, aka Norski said...

jeromine,

Sorry. That was too spammy.

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