Just when you think Circuit City (NYSE:CC) is starting to turn things around, the No. 2 electronics retailer disappoints again. The stock crumbled 10% this morning after the company reported that December sales fell 1% to $1.71 billion, with same-store sales down 2%.

Analysts had been expecting same-store sales to climb 6%.

Interestingly, Circuit City did well in advanced technologies like LCD and plasma televisions, digital satellite systems, digital imaging products, and satellite radio. Internet sales were also strong. But contrary to news out of Electronics Boutique (NASDAQ:ELBO) yesterday, weak video game hardware and software sales more than offset those positives.

The company expects to open 65 to 70 superstores in fiscal 2005, which begins March 1. However, a little more than half are expected to be relocations of existing stores. As Fool Dave Marino-Nachison noted a few weeks ago, Circuit City's relocated stores have performed better, but not without costs in both time and money.

And while the new and revamped stores are attractive and help enhance the company's brand, Best Buy (NYSE:BBY) is just bigger and better, with healthier locations. Fools know better than to chase second bests. For now, in a space clearly dominated by Best Buy, Circuit City is one to avoid.

Have a favorite? Talk it over on the Circuit City and Best Buy discussion boards -- only at Fool.com.

Jeff Hwang can be reached at JHwang@fool.com.