Competitors of Circuit City best Buy Hh Gregg Walmart Electronic Retailers

The demise of Circuit City could mean larger retail sales for Best Buy, H. H. Gregg, and Wal-Mart. Circuit City sold certain assets to Systemax on May 19, 2009. Systemax (SYX) prides itself on marketing computers and products throughout North America and the European continent. Systemax offers their products through catalogs and websites, boasting of over 100,000 items from both the brand and private label sectors. Additionally, Systemax offers its own brand of software and industrial products. Systemax is apparently hopeful that its purchase of Circuit City’s assets will increase both its sales and name recognition. Systemax offers a wide selection of products, warranties, guarantees, and fast shipping times. Systemax has been trading between 8.36 and 19.70 for the past 52 weeks; on 5/27/09, it closed at 12.14.

The downside of online selling is that the consumer cannot touch and examine the product. This might give an edge to competitors of Systemax. Best Buy offers a wide selection of electronics, followed by H. H. Gregg and Wal-Mart. Best Buy may have a bit of an advantage as its locations have traditionally been within a block or two of Circuit City, making it an easy choice for consumers.

The Competition

Best Buy (BBY) has been a major competitor of Circuit City and will likely benefit positively from the closing of Circuit City. Best Buy contains a seemingly endless supply of products from software to HD televisions. Best Buy offers technical experts, warrantees, guarantees, and in-store specials. They offer a full line of software, computer games, CDs, electronics, and kitchen appliances. Best Buy remains a leader in offering the newest technology products. They were the first retailer to stop selling analog televisions 1-1/2 years before the transition date to digital only. Best Buy’s stock for the past 52 weeks was between 16.42 to 48.99. On 5/27/09, it closed at 37.05

H. H. Gregg (HGG,) first opened in 1955 in Indianapolis, selling items such as washing machines and outdoor grills. Over the years, the family added televisions and other electronics, while expanding to several states from Michigan to Florida. H.H. Gregg frequently advertises in the Sunday paper and through residential mailings, offering specials and low prices. Focusing on customer satisfaction is an important part of H. H. Gregg’s family-owned business. In the last 52 weeks, H.H. Gregg’s stock has fluctuated between 3.57 and 19.12; on 5/27/09, it closed at 16.08.

Wal-Mart (WMT) is a store that actually makes nothing, but its movement of goods grows daily. The world’s largest retailer with over 7800 stores, Wal-Mart is a one-stop shopping store. A consumer can buy a gallon of milk, tools, clothes, and electronics in one location. With the introduction of electronic names such as Apple, Philips, and Acer, Wal-Mart is a sure fit for people who used to shop at Circuit City. With low pricing, it seems likely that Wal-Mart will continue to pull some of the electronics sales from the former Circuit City. For the prior 52 weeks, Wal-Mart’s stock fluctuated between 46.25 and 63.85 and closed at 50.0 on 5/27/09.