Search
 

Despite Losses, Circuit City to Grow Concept

RICHMOND, VA-The company will have slowed its new-store growth plan to 50 to 60 new units for 2008.

By Debra Hazel | Updated on December 25, 2007

RICHMOND, VA-Circuit City Stores will continue to expand domestically, but more slowly, executives said at the company’s third-quarter conference call. After opening 61 to 63 new and relocated superstores in fiscal 2008, plans call for some 50 to 60 new and relocated stores, all in the heavily interactive City format, in fiscal 2009. Earlier plans had called for 75 to 100 stores in fiscal 2009.

“We have a growing store base and competition that continues to open new stores,” said Bruce H. Besanko, EVP and CFO. “We are continuing to grow to remain competitive.”

Most existing stores have positive cash flows, so there will be few closures. All of the new stores will average about 20,000 sf, reflecting the move away from appliances. Seven “City” concepts already are open. About 80% of 2008 stores will be incremental units, with 20% being relocations. As the existing store base continues to age, that proportion will shift to relocations.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.