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The Demise of Circuit City, Is the Internet Really Taking Over?

Susan Johnson
Press

By now we’ve all seen the news of the demise of Circuit City and Tweeter.  In today’s economic conditions it’s common for even long-established businesses to fail.  Circuit City started out 60 years ago as the Wards Company, changing its name to Circuit City in 1984.  They closed down in the US in January, remaining open in Canada.  Tweeter was not quite as old being established in 1972 and eventually growing to 100 stores before closing in December.

So is the poor economy really the culprit here?  Or is it perhaps… the internet?

I have seen countless debates in online forums about the advantages of buying in a brick-and-mortar store versus a website.  I certainly agree it’s important to see a television or listen to speakers and electronics before purchase.  But how realistic is this?

There were three Circuit Citys near my home.  Not one had a properly treated listening room.  Not one had a suitable environment for judging the quality of a video display.  And in my experience, not one could link me with a knowledgeable salesman who really knew anything about the products being sold there.  I did purchase my first HDTV at a Circuit City.  All of my electronics purchases since then have been online.

In all fairness to the good hi-fi shops out there; I’ve been in some great stores but the closest ones to me are over an hour away in New York City.  It’s just not feasible for me to shop in an electronics store near my home.  I, like many others, have spent thousands of hours researching products on the internet.  Websites like Secrets provide an invaluable resource.  Where else but the internet can one find so much information about electronics?  No, I can’t listen to speakers on the internet or check out a TV on the internet but I couldn’t really do that at Circuit City either.  So all that’s left is education.  I couldn’t find that at Circuit City.

So my conclusion is this: Circuit City and Tweeter failed, at least in part, because they had nothing to offer versus the internet.  They couldn’t educate the consumer.  They couldn’t demonstrate products properly.  And they couldn’t instill the confidence in a buyer that he was getting the most product for his money.

What do you think……..

Chris Eberle