Circuit City slow on uptake

The one-time consumer-electronics giant is about to be liquidated, but don't expect any information on the chain's Web site. Judging from the main page, it's business as usual, with the usual promotions for computers and HDTVs. Under the small heading "Answers to your questions about Circuit City," we're directed to a Dec. 7 letter to customers from Vice Chairman Jim Marcum. He writes about his "personal commitment" to make the Circuit City shopping experience the company's top priority." Also:

Please know that you can continue to shop with confidence. This means that we will be in stock with a terrific selection from all the best brands. Returns and exchanges will be done quickly and easily and gift cards and Circuit City-branded credit cards will be honored at more than 560 locations nationwide. Circuit City Advantage Protection Plans® are offered by a third-party company and are not impacted by transitions in Circuit City's business. Most importantly, we will continue to do everything we can to make it easier and more enjoyable for you to shop at Circuit City. You have my word on that.

Oops. Good luck to those trying exchange items or have them repaired. It's worth noting that previous store closures have reduced the chain's L.A. presence. But there are still a few dozen locations in Socal, among the 550 stores in the U.S. and Canada that will shut down. That means around 30,000 people being put out of work. You might recall that at one point, the company fired thousands of veteran salespeople and replaced them with lower-paid and less-experienced workers. The chain's honchos said it was a way of saving money without impacting sales or service. Well, guess what? From the WSJ:

Credit Suisse analyst Gary Balter told investors that Circuit City's demise will help Best Buy cement its position as the market leader. "Losing Circuit [City] and what had previously been an $11 billion business, in addition to share gains from other smaller outlets, should help to partially offset weaker consumer spending as well as further secure Best Buy's position as the leader in the space," he said.