Circuit City lost its battle with the recession early in the game and was forced into chapter 11 even after the initial closing of 155 poorly performing stores across the Midwest. With a lackluster showing of buyers to purchase existing leases and bleeding capital at the seams; no other choices were left but to close the remaining 567 stores and liquidate all assets. It comes as no surprise to many consumers that they followed the demise of fellow electronics retailer CompUSA which declared bankruptcy in 2007 and closed all 229 of its stores shortly thereafter. Best Buy, the only remaining electronics retailer of its kind in many markets, currently has 1,010 stores across North America and plans to open 50 more stores in 2009. This is half as many openings that they did in both 2007 and 2008. Expansion plans have slowed with the turning of the economy; however, looking at their stock price it doesn’t appear that they are going to be having a going out of business sale anytime soon. Best Buy bottomed out to its lowest since 2003 in mid November at $17.63 but has since rebounded to its current price of $29.16/share.
Many consumers hardly shopped at Circuit City; citing its poor selection, dimly lit buildings and terrible customer service. Even when their liquidation sale began on January 16th, many consumers left the stores empty handed, mentioning that the ‘deals’ certainly weren’t deals at all. Best Buy has always tried to serve its customers as best as possible. Although net income is down,  its revenue is up. As consumers continue to cut back on their spending and the recession deepens, Best Buy expects its sales to decline 8% in 2009. The coming months will determine Best Buy’s fate. With online shopping more convenient than ever and no signs of a resolution to the current recession, it’s difficult to determine how things will shake out for Best Buy.