Electronics retailer Circuit City
Getting out of the credit game looks like a great move for Circuit City. Don't get me wrong. I'm not knocking the business. With half of Americans spending more than they earn each year, consumer financing can provide some serious green. Need proof? Check out the monster earnings reported yesterday by Bank One, Citigroup
But banking hasn't been so great to Circuit City. It sold its underperforming bank card business to FleetBoston Financial
Investors responded with enthusiasm on Tuesday, fueling an 8% bump in the stock's price. You might forgive the overly enthusiastic reception if you consider the other recent news regarding Circuit City, which has been mostly bad. As Jeff Hwang reported, Circuit City's December sales and comps both fell in 2003 versus 2002, while bigger rival Best Buy
Shedding the credit card distraction is another step down the right path for Circuit City. But until it can respond to challenges from Best Buy, plus discounters such as Target
Seth Jayson stays out of electronic stores altogether because he has no willpower.