Filed under: Bad news, Competitive strategy, Circuit City Stores (CC)

Although Circuit City Stores, Inc. (NYSE: CC) reported a horrible December in terms of sales and profits, the second-largest consumer electronics retailer in the U.S. was one of the top three online consumer electronics retailers in December, trailing leader Best Buy, Inc. (NYSE: BBY), but ahead of online auction giant eBay, Inc. (NASDAQ: EBAY).

Nielsen ratings figures put unique web visitors like this: Best Buy at 23.99 million, and Circuit City at 19.61 million. Figures for eBay weren’t available (as some separate categories have to be measured together), but the real news was that Circuit City’s December 2007 website traffic growth increased more than 20% from 2006’s level. Best Buy’s December 2007 visitor count rose only 9%.

Why couldn’t Circuit City capitalize on such an impressive amount of unique holiday retail traffic? The failure of the retailer to make any sales gains this past holiday season just seems endemic of multiple failures and problems the company has at this time. While we wait on Circuit City CEO Phil Schoonover to be sacked from the corner office, perhaps a lingering, potential sale of the company will force the issue and Circuit City can get back to business. Profitable business, that is.

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This entry was posted on Thursday, January 31st, 2008 at 10:38 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.