blockbuster's interest in Circuit City has Zero to do with Circuit City's sales of optical media. Big Box stores like Circuit City and Best Buy use Optical media (CDs & DVDs) as loss-leaders, meaning they sell them near or at wholesale prices to lure customers in with the hope customers will purchase other items with more built-in profit. Circuit City is the only real threat to Best Buy (Outside of Walmart) on a national scale. I'm surprised someone hasn't tried to buy out CC earlier.
Reader Comments (Page 1 of 1)
kcjones @ Apr 14th 2008 12:32PM
blockbuster's interest in Circuit City has Zero to do with Circuit City's sales of optical media. Big Box stores like Circuit City and Best Buy use Optical media (CDs & DVDs) as loss-leaders, meaning they sell them near or at wholesale prices to lure customers in with the hope customers will purchase other items with more built-in profit. Circuit City is the only real threat to Best Buy (Outside of Walmart) on a national scale. I'm surprised someone hasn't tried to buy out CC earlier.