Circuit’s basic business model has other problems, retailers note: it’s not as efficient as Best Buy, nor can it claim to be an AV specialist with the experience of smaller, independent dealers.
“Floundering in this middle ground caused most of their problems,” Caldero said. “Still, you think back just 10 years, they owned the marketplace, they were the leading retailer for CE, they dominated everywhere they had stores. But in all the distractions—from CarMax, to DIVX to everything else - they forgot what brought them to the party.
“The industry needs a stronger Circuit City,” he added. “The world doesn’t need a second Best Buy.”