In the recent months, it said that each mall in America 1 out of 5 stores will go out of business during this time. This is hurting the retail leasing sector, but are these businesses really going out of business? My answer is no, these businesses are changing their strategy. The old days of driving to a store, asking a clerk for a recommendation, and paying the cashier does not need to apply to each store. Circuit City today announced that it will be selling their website to TigerDirect. A similar purchase was made last year, when TigerDirect brought the CompUSA name and website.
It appears that this investment payed off. When people first think of buying a new computer, they think CompUSA, and many people do price shopping online. The same goes with CircuitCity, when people first think of buying a new television, they think Circuit City or Best Buy. Also, in the past year people are more confortable with buying big purchases online. People are used to ordering a new plasma off Amazon or getting a new computer from Dell's website. Even though Circuit City is no longer in your neigbor hood shopping district, you can still do business with them and get a better deal than before. There will be no need to pay hourly sales employees, no need to pay monthly leases on bick stores, or the other costs such as newspaper advertising or possible sales tax.
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