NPD: Best Buy Winner in Circuit City Closing26 Feb, 2009 By: Erik Gruenwedel
With the Circuit City liquidation down to the chain’s fixtures and shelving, most former customers appear headed to Best Buy — not Wal-Mart — for future consumer electronics purchases, according to a Feb. 26 report from The NPD Group.
The research company said 55% of consumers surveyed who purchased technology products at Circuit City said they would shop at Best Buy going forward. Another 11% said they would frequent retail behemoth Wal-Mart for CE products.
Interestingly, price (40%) was the primary reason respondents said they preferred Best Buy, followed by product selection (29%) and store location (22%).
Stephen Baker, VP of industry analysis at NPD, said Microsoft’s recent decision to open retail stores promises a more competitive CE retail landscape.
“Manufacturers will need to become savvier about how they go to market in the future as volume could potentially concentrate in the two largest retailers,” Baker said. “While the retailing strengths of Best Buy and Wal-Mart may make it difficult to keep consumers from turning to [alternative] retailers, there are other retailers and channels that can compete with those two on the basis of price, selection, and location, or some combination thereof.”