Canalys Sees "Bleak Future" For CE RetailApril 19, 2012
Many more consumer electronics retailers are likely to follow in the footsteps of Circuit City and CompUSA in going out of business. That's according to a report issued this week by research firm Canalys, which sees a "strategic failure" of the CE retailing model.
"They lost too much business to competitors undercutting them on price and failed to respond to the many attractions of Amazon’s online approach, such as its vast stock ranges, peer reviews, recommendations, free delivery and excellent returns services," said Steve Brazier, Canalys CEO.
"Today’s consumers are even willing to browse for a book in a local store then order it from Amazon at a higher price simply because they want Amazon to understand their entire library, to optimize future recommendations. This is more than 'showrooming' — this signals a fundamental shift in consumer perception of value."