[Rocketfan]

CHICAGO (Reuters) - Circuit City Stores Inc. (NYSE:CC - news) said on Thursday it is closing about 70 stores and that Chief Merchandising Officer Douglas Moore has left the company as it responds to increased pressure in the electronics retail market.

The retailer, which lags behind rival Best Buy Co. Inc. (NYSE:BBY - news), is making changes after it faced intense gross margin pressure in the flat panel television category in the third quarter, Chairman, President and Chief Executive Philip Schoonover said in a statement.

Wal-Mart Stores Inc. (NYSE:WMT - news), the world's largest retailer, has been particularly aggressive in recent months, cutting prices on plasma televisions by as much as $500 in early November to get a jump on the holiday-season price wars.

Schoonover said Circuit City is taking some actions immediately and that other plans are expected to be implemented over the next six months.

Circuit City expects to incur pretax expenses of about $30 million related to store and other facility closings, $40 million to $60 million in expenses related to goodwill impairment, and about $15 million in expenses related to other restructuring activities.

Circuity City said that substantially all of the $85 million to $105 million in expenses would be incurred in the fourth quarter of fiscal 2007, and that more expenses could be incurred in the quarter as it moves forward with its plans.

STORE CLOSINGS

Circuit City plans to close about 62 underperforming company-owned stores in its international markets.

Circuit City also plans to close the domestic segment operation that was being held for sale, and had already been reported as discontinued operations.

It plans to close 7 U.S. superstores by the end of February that generated $71 million in revenue during the 12 months ended December 31. The company also plans to close another superstore this month before opening a replacement store during the first quarter of fiscal 2008.

Circuit City also plans to close a Louisville, Kentucky, distribution center used mainly for store fixtures and signs.

Under the new management structure, the company's merchandising, services and marketing will fall under one leader, David Mathews, and all of the retail channels -- U.S. stores, international stores and Circuit City Direct, will report to George Clark Jr., executive vice president of multichannel sales.

The company also said that Chief Financial Officer Mike Foss would work on improving productivity and identifying new growth opportunities

[TDDance234]

They've got to find a way to lower prices. It's just no contest between CC and BestBuy.

[PAmedic]

Whats odd (to me, anyway) is that we are surrounded by BOTH and I've never been IN a Best Buy.

I heard somewhere that BB takes returns/broken/used merchandise and resells it w/out telling you, so I've just always avoided them. Urban legend?

Always go to Circuit City and found them to be the cheapest anyway. Maybe just up here

[Sly Fox]

Sale items are the only difference in price down here between the two stores. Literally they are the same down to the penny on most every item in their stores. When one runs a sale, it sells out and the competitor matches the price.

[El Scorcho]

Best Buy has consistently had the worst customer service and some of the most shady practices in all of American (and Canadian, for that matter) retail. I refuse to shop there unless I absolutely have to. I always went to Circuit City on principle when it was still open. Now I just order everything that I possibly can online.

[JDUB]

everything at best buy is overpriced. i buy at either walmart or ebay. the only way i'm goint to BB is a great sale or i need something fast

[thepostman]

I go to best buy the day a new cd I want comes out, a lot of time they are 7.99 and a lot of times those cd's have special edition dvd's in them as well....which is really the main reason i love Best Buy