Circuit City’s loss is a gain for Target

Target is among a handful of mass-market electronics retailers, as are Walmart and Best Buy, that are well positioned to benefit from the demise of Circuit City and the elimination of selling space that will result from the closure of 567 stores.

However, in the short run, Target’s CE and entertainment businesses will feel the negative effect of reduced consumer demand, as liquidation sales at Circuit City stores impact demand. Going-out-of-business sales began on Jan. 17, and are expected to last between six to eight weeks.

Ajoint venture group consisting of Great American Group, LLC, SB Capital Group, LLC, Tiger Capital Group, LLC, and Hudson Capital Partners, LLC, will be conducting the sales.

“The Circuit City liquidation is one of the largest retail liquidations to take place in the United States to date, and the largest yet of any major national consumer electronics firm,” noted Daniel Kane, principal of Tiger Capital Group.

Scott Bernstein, principal of SB Capital Group, added, “While the demise of Circuit City is certainly unfortunate, these going-out-of-business sales will provide consumers with great values on a wide variety of electronics and other items.”