Rick Aristotle Munarriz's recent ode to Best Buy
Mostly, I agree with Rick's prognosis for Circuit City. Reinventing itself by sprucing up the real estate, which I suggested the company might accelerate, isn't a slam-dunk in its bid for market share.
But that doesn't change the fact that Circuit City -- not to mention other, smaller niche competitors -- had better think of something. A story in Sunday's Washington Post highlights what might be the biggest problem: a savage pricing battle with the biggest players.
That's great news for shoppers, especially around the holidays, but it's bad news for the losers.
So, if Rick has a tactic for survival, I'm betting companies like Circuit City, Tweeter
The fierceness of today's price battles imply a customer satisfied with a straight up "get me my big, brown box and get me out of the store" experience -- if the price is right. Tweeter, meanwhile, lacking Circuit City's resources to prop it up, has opted to curb its expansion while it works to improve store-level performance.
But what next? Until we find out, and however this plays out for investors near-term, it sure makes for happy news for last-minute shoppers.
If you were the CEO of a consumer electronics chain, how would you run your business to fight the big boys? Share your strategy our Retail discussion board.
Dave Marino-Nachison can be reached at firstname.lastname@example.org.
More from The Motley Fool
3 Growth Stocks Worth Owning for the Next 50 Years
These stocks have the potential to reward investors for decades to come.
Why GNC Holdings Stock Lost 66.6% in 2017
With the American mall in decline and uneven earnings performance, the market took a bearish position on the health of GNC's business.
A Royalty Marijuana Stock Might Be the Smartest Way to Get In on the Green Rush
This revolutionary royalty pot stock expects an annual yield of 230,000 kilograms of dried cannabis from its partners.