Port Washington, N.Y. — Best Buy will pick up the bulk of Circuit City’s estimated $9 billion in CE sales once the bankrupt chain shuts its doors, a report by The NPD Group suggests.
In a survey of Circuit City customers conducted by the market research firm in November, fully 55 percent said they would do their CE shopping at Best Buy after the chain closes.
Wal-Mart was the second leading alternative, cited by 11 percent of those polled.
NPD industry analysis VP Stephen Baker said the likely consolidation of two-thirds of Circuit City’s volume into two national chains will force manufacturers “to become savvier about how they go to market in the future.” Strategies, he suggested, could include opening their own retail stores, as Microsoft recently said it plans to do.
But while the retailing strengths of Best Buy and Wal-Mart make them an undeniable draw for consumers, vendors should also consider other retailers and channels that can compete with those chains on price, selection and location, he said.
According to the survey, price, product selection and store-location convenience were cited as the top three criteria in choosing an alternative to Circuit City, at 40 percent, 29 percent and 22 percent, respectively, NPD said.
