[Rocketfan]

RICHMOND, Va. - Dressed in jeans and black T-shirts and armed with touch-screen laptops, Generation Y employees at "The City" help customers choose the latest gadgets.

Far from its old "stack 'em high, watch 'em fly" approach, struggling electronics retailer Circuit City Stores Inc. hopes its smaller concept stores, widespread cost-cutting and new support services will spark a turnaround despite increasing competition and the faltering economy.

We have a difficult economy, we have fierce competition and we're in the middle of some of the most difficult, deepest work in the transformation," Chief Executive Philip J. Schoonover said in an interview with The Associated Press.

Circuit City hasn't seen a quarterly profit since the second quarter of 2007 and lost more than it had expected in the third quarter of its fiscal 2008, which ended Nov. 30. Now, it anticipates reporting a "modest loss" in the fourth quarter, which included most of the crucial holiday-shopping season.

The nation's No. 2 electronics retailer, Circuit City is not faring well compared to No. 1 Best Buy Co., which reported a 52 percent jump in profits in the quarter ending Dec. 1. Circuit City has rejected takeover bids and seen several key executives leave over the past year. Then, late last month, a major shareholder proposed a clean sweep of the company's board.

http://news.yahoo.com/s/ap/20080310/ap_ ... dRE34jtBAF

[Sly Fox]

So much for being one of Jim Collins' model companies. Perhaps they are good to great to good again based on economic markers.

[kel varson]

I have a hard time believing CCity is having financial issues having seen the lines out the door over the Christmas season. It's probably the most popular store in my town---all year round. What guy doesn't like to just go there and walk around.

[Sly Fox]

In a recession the first thing to be cut from budgets are things like electronics. People still have to buy groceries and gas ... but that new 50" 1080p may have to wait a year when things get tight.

Then again, for many of the folks on this board the decision to get the 50-incher would be an easy choice over food and gas.

[LUconn]

sounds like I've been in a recession since graduating.

[jcmanson]

sounds like I've been in a recession since graduating.

You and me both.

[phoenix]

It's probably the most popular store in my town---all year round. What guy doesn't like to just go there and walk around.

The problem is that as much as they walk around looking, they're not buying.

I wander through CCity all the time. You know how much I've spent there in the last 12 years? $29.99, and that was in one shot about six years ago, after I got my digital camera (I won it, didn't buy it). I'd rather have two people in my store and sell them both a plasma TV than have 50 people there standing around watching the Super Bowl on my TVs and buy nothing.

[TIMSCAR20]

It's probably the most popular store in my town---all year round. What guy doesn't like to just go there and walk around.

The problem is that as much as they walk around looking, they're not buying.

I wander through CCity all the time. You know how much I've spent there in the last 12 years? $29.99, and that was in one shot about six years ago, after I got my digital camera (I won it, didn't buy it). I'd rather have two people in my store and sell them both a plasma TV than have 50 people there standing around watching the Super Bowl on my TVs and buy nothing.

My last few major purchases have been from Circuit City. I just bought a digital camera and a new Sony 40 inch Bravia. I plan on getting my birthday PS3 from there too. I used to go to Best Buy for years but lately CC has been my place. We got a great deal on the Bravia too. Close to 50% off the original price. 400 off for the sale and another 300 off for signing up with DirecTV! I almost went to work at their corporate office last summer. I may go there for an assignment in the future but maybe not if they are having profit issues.