After visiting both Best Buy and Circuit City this weekend, I was floored by the incredible differences between both stores: Best Buy was packed, Circuit City was begging people to come in; Best Buy was making sales every few seconds, Circuit City had one register open and no one in line. Thinking this must have been an anomaly, I did some research on both of the companies' financials and came to a staggering conclusion: Circuit City is dead in the water.
Sure, some may say that my assertion that Circuit City is dead may be a bit premature considering the fact the company has enjoyed growing revenue with last year's figure amounting to almost $12.5 billion, but for the first time in three years, Circuit City incurred a loss of $8 million -- a sharp contrast from its 2006 profit of $139 million.
But Circuit City's problems go far beyond its financials. Much like CompUSA, it's a company that is plagued with poor leadership and a host of issues that its management simply can't fix. And to make matters worse, the same two forces that killed CompUSA -- the online world and Best Buy -- have Circuit City in their sights now and things don't look good.
Trust me -- it's all over for Circuit City.… Read more