According to a recent WSJ article, the liquidation of Circuit City did not make for a market share gain for Best Buy. Circuit City has a 8% market share for US Electronics and appliances. However, recent surveys say that overall physical store outlets, including Best Buy had a 11.2% decline since February 2009. As a person with intimate knowledge of the online retail business, it is no surprise that the winner is Amazon.com. Amazon noted a 38% increase in sales overall and their prices are very competitive. In my opinion, online retailers are the best place to make a purchase since price competition makes for single digit margins. Some online retailers may even be selling at a loss because the accounting team is unaware of the sales and discounts being offered from the marketing department. As mentioned in a previous LCD TV research post, Wal-Mart reported market share gains as it makes a big push into the consumer electronics market.

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