Short Circuit

  • 21 Jan 2009 at 4:34 PM

Circuit City: Higher Prices! Even In Liquidation!

By Bess Levin

Consumer Reports Reports:

For example, at the liquidation, a 50-inch Panasonic plasma TV was discounted to $1,800, a $200 savings. That might sound like a bargain, but if you check the circular you’ll see that Circuit City had planned to cut the price this week by $500. What’s more, we found the same model online for $1,365, including free shipping.
An HP all-in-one printer, at the liquidation for $270, was scheduled to be on sale for $150. And we found it as low as $135 online. A Garmin GPS system, discounted to $225, was $160 in the circular and $141 online.
Despite the modest discounts, the checkout counter was mobbed. We repeatedly overheard salespeople telling customers that they had run out of merchandise. Shoppers were undeterred by signs proclaiming that all sales are final; that the store no longer was accepting the Circuit City credit cards, personal checks, or coupons; and that it wouldn’t match competitors’ prices.

This is either massive genius, or complete incompetence, depending on how the liquidation goes.
Bargain Hunting? Not So Much [Banker Gone Broke]

  • 03 Nov 2008 at 2:48 PM

Maybe We Could Just Forget About The Entire Thing?

By Equity Private

You know. That whole Circuit City fiasco. Ok, sorry, fiasco is a bit, impolitic. How about, indiscretion?
If nothing else, we can use the entire event as a brief study on financial journalism. Consider this passage from Reuters on recent events:

Circuit City shares, which now trade for less than $1, rose 50 percent in early activity. Best Buy Co, which has said it could view store closures by rivals as an expansion opportunity, rose 7 percent.

Far be it from Reuters to permit even a moment’s hope by allowing someone to put the 50% jump early in the paragraph. No, no. Not here. Hopes are immediately dashed with the “less than $1″ clause before the percentage gain is disclosed and, even then, the entire thing is wrapped up with the discrediting “in early activity.” Capping the entire ‘graph off with a rival’s shrewd, opportunistic move really drives one of the last nails in. Don’t you think?
Don’t hang around financial journalists when there is blood in the water.
Circuit City closing 155 stores, seeking options [Reuters]