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Electronics retailer reports quarterly sales decline

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Circuit City Stores (Richmond, Va.) reported a total sales decline of 3 percent for the quarter ended Nov. 30, 2000. However, for the nine months ending that day, the home electronics retail showed a 6 percent total sales gain.

Comparable store sales declined 10 percent for the quarter, and 1 percent for the nine-month period. Excluding stores in central and south Florida, where remodels were completed late in the third quarter, comparable store sales declined 9 percent for the quarter and were unchanged for the nine months. And excluding the appliance category, which the company dropped in the third quarter, comparable store sales rose 3 percent for the quarter and 6 percent for the nine months.

Some of the reasons cited for the disappointing results were: appliance merchandise markdowns associated with the exit from the appliance business; the costs associated with fully remodeling the central and south Florida stores; the costs associated with partial remodels to exit the appliance business and add new categories to the remaining 539 stores; and the sales disruption caused by the absence of any product in the former appliance space during the seven to 10 days of partial remodeling.

“Although sales for our Circuit City stores were below expectations, we were pleased that better-featured products, new technologies and the new categories which were added to the stores across the course of the quarter grew rapidly,” said W. Alan McCollough, company president and ceo. “We completed full remodels of 26 stores, primarily in central and south Florida, the weekend prior to Thanksgiving and have now grand-opened 18 new stores that follow the new consumer electronics and home office-only design. During the quarter, we also completed the exit from the appliance category and the partial remodel of 539 stores to expand our selections of computer software, peripherals, accessories, video games, 35 mm cameras and portable audio products.”

Circuit City operates 590 Superstores and 39 mall-based Circuit City Express stores in addition to 40 locations of CarMax, the specialty retailer of used cars.

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