The retailer I choose to analyze for my blog is Circuit City. Like so many others I was stunned to find out one of my favorite retailers filed for bankruptcy. Not jus for the fact that I've never witnessed a huge retailer closing like that but because it hit home that or nation is really being affect by this economic crisis.
According to redorbit.com Circuit city filed for bankruptcy on Nov. 3rd 2008. Before doing so the company closedd 155 of their stores put 17% of their workers out of a job. Fter trading this article their assumption for the 59 yr old retailer to claim bankruptcy is plunging consumer spending due to the economy. On CNNMoney.com they state the same reasons besides the economic meltdown most consumers face they also dont trust spending large amounts on electronics like Flat screens or computers (some of the retailers money making selections) because theyre unsure if the company will completely fold leaving them with lifetime warranty's for things that cant be replenished.
In my opinion besides the obvious reasons of failing I believe the company didn't prepare themselves for such a tragedy. I dont't think most retailers believed the recession would be so detrimental to their businesses.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment