Circuit City Sales Jump in December

Circuit City Stores, Inc. (Richmond, Va.), the troubled consumer electronics retailer that has tried internal reorganizations, changes in merchandise selection and a whole new store format in an effort to turn things around, may be turning things around.

The retailer reported that total sales for December 2001 for its Circuit City Store business rose 10 percent. Same-store sales also jumped 10 percent.

However, news was not as cheery today throughout the consumer electronics retail world. RadioShack Corp. (Fort Worth, Texas) reported that total sales from its retail division, including sales to its dealer/franchise stores, decreased 2 percent for December, and same-store sales at company-owned stores also decreased 2 percent for the month.

“We are extremely pleased with our December sales performance,” said W. Alan McCollough, Circuit City president and ceo. “Sales were particularly strong in those categories that were expanded following last year's exit from the appliance business and which seasonally peak in December: video game hardware, software and accessories; digital cameras; personal computer software and accessories; and DVD software. We also posted strong sales comparisons in categories that have performed well earlier in the year, including big-screen televisions, digital satellite systems and wireless telephones. In addition, personal computer hardware sales comparisons turned positive in December, after several quarters of negative comparisons.

“Looking to the balance of the fourth quarter,” McCollough continued, “we believe that comparable store sales increases in January and February 2002 should be in line with our original expectations for mid-single-digit growth. This expectation, combined with our strong December sales, leads us to anticipate comparable store sales increases for the quarter in the upper single digits.”

“While computer sales remain soft,” RadioShack Corp. chairman and ceo Leonard Roberts, “we are encouraged by the consistent trend of strong, profitable sales in our anchor businesses of wireless communications and parts, batteries and accessories. The positive sales trend in our anchor businesses is further proof that our anchor growth strategy is solid. We're confident that our strategy will lead us to improved performance in the years to come.” Year-to-date, RadioShack's total sales have been flat and its same-store sales up 1 percent.