02.14.2007 12:00 AM
HD Retailer Takes a Post-holiday Hit
When major retail chains continued to lower prices on HD flatscreen products in a fierce price war during the recent holiday season in order to compete and to move merchandise off the shelves, they also took a beating when it came to profit margins. Circuit City, for one, is now feeling the ripple effects of the price war in very tangible ways.

The Richmond, Va.-based CE chain announced it will have no choice but to shut down at least a few dozen stores and, therefore, lay off several hundred workers. Also, some top Circuit City execs (including its chief merchandising officer) will be fired, according to The Washington Post.

The all-out price war, which continued in some respects well beyond the holidays until the Super Bowl earlier this month, positioned Circuit City in a pitched battle with other major retailers, notably Wal-Mart and Best Buy. Circuit City wound up offering more than 170 HD/DTV models and brands, with price cuts of up to 18 percent across the board.

The Panasonic brand 42-inch plasma set, for example, fell from nearly $1,800 in the early fall to about $1,200 by November. For fiscal 2007, Circuit City is estimating its operating margin may be as low as 1.2 percent. "What you're seeing today is us trying to change to become more competitive within our industry," a company spokesman said.

Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found

Tuesday 03:07 PM
WMUR-TV Says FAA Drone Rules Preclude ENG
The FAA’s current rules and proposed ban on flight over people, requirement of visual line of sight and restriction on nighttime flying, effectively prohibit broadcasters from using UAS for newsgathering. ~ WMUR-TV General Manager Jeff Bartlett

D. Pagan Communications /   Friday 10:35 AM
Blue Line is Hot on the Trail of DPA Microphones
Clyne Media, Inc /   Thursday 09:51 PM
Focusrite Expands RedNet Range

Featured Articles
Discover TV Technology