Circuit City shoppers find less than bargains at closeout sale | don.nelson@onlineathens.com
Circuit City shoppers find less than bargains at closeout sale
Liquidator sets prices
By Don Nelson |
don.nelson@onlineathens.com | Story updated at 10:51 pm on 11/7/2008
Shoppers rushing to liquidation sales at Circuit City stores might want to do a little research before snatching up electronics at closeout prices, retail experts say.
Circuit City hired a liquidation firm to sell the remaining inventory at most of the 155 stores it plans to close, including the Athens store at 4110 Atlanta Highway, and liquidators don't necessarily offer the lowest prices, said Howard Davidowitz, chairman of Davidowitz & Associates, a retail consultant based in New York City.
"Their mission is not to establish or maintain a relationship with the customer," Davidowitz said. "Their mission is to maximize the return on the inventory."
So retailers such as Circuit City do not necessarily offer bargain-basement prices simply because they are closing stores, he said - prices may be cheaper online or at another retailer.
"If you're a consumer, you have to be very cautious about the value of going-out-of-business sales," Davidowitz said. "Businesses will use a going-out-of-business sale as the magic word to convince you that you are buying the deal of the century. So it's customer beware."
Seth Waltman learned that Wednesday, when he discovered the floor-display flatscreen television he wanted to buy would come $50 cheaper - and brand-new in the box - if he ordered it from the Circuit City Web site.
Circuit City's policy of matching its online prices is not in effect for the liquidation sale, said company spokesman Jim Babb.
The closeout sale will continue until the end of the year or until all the store inventory is sold.
Circuit City announced Monday that it will close 155 stores by the end of the year. The company faces declining sales and struggled to update inventory as suppliers cut back on credit.
Originally published in the Athens Banner-Herald on Saturday, November 08, 2008